West Virginia Bankruptcy Laws should be known by every resident of the state of West Virginia. Credit cards have its advantages and disadvantages. If you can keep up with your monthly credit card bills, then that’s good; however, there are some incidences that you have no control of. A hospitalization of a family member or an accident may put a dent in your budget, and lead to non-payment of debts. If you have exhausted all options and there’s still no solution to your financial crisis, it’s time to avail of the state’s bankruptcy protection program. The rules and provisions of bankruptcy are specified in West Virginia bankruptcy laws to give debtors an idea of what to expect.
It is wholly essential to educate yourself on bankruptcy laws if you will not hire a lawyer. Then again, it has always been emphasized that bankruptcy application is a labyrinthine process, and employing the services of a lawyer is such a necessity in these circumstances. It is important to hire a lawyer who is licensed to practice in the state in West Virginia and an expert in handling bankruptcy cases to ensure that your application will be filed successfully.
One of the basic things to learn in bankruptcy application is to choose between two options available for debtors: Chapter 7 or Chapter 13. As is it, the Chapter 7 bankruptcy program will perfectly suit debtors who have very low income and are up to their necks with bills and payments. These debtors also have greater chances of being enrolled in the program based on the criteria of a monthly income lower than the standard median income as per the current US Census Bureau data. Once all the necessary paperwork has been submitted and the filing fee has been paid, the proceeding starts. A liquidation of all dischargeable debts will be implemented, and it is up to the trustee to sell the non-exempt assets of the debtor to pay the outstanding debts.
For those whose application for Chapter 7 has been denied, another alternative is Chapter 13. Most regular income earners who are having a difficult time paying their bills can avail of this bankruptcy program too, as well as debtors who do not want to lose any of their assets during the proceedings. This program is called debt reorganization since the debtor will recommend a repayment plan subject to the court’s approval with the trustee’s supervision. The repayment plan will outline the details of how the debtor will repay his creditors based on the time period allocated by the bankruptcy courts. There may be instances where you can only repay some, not all of your debts to which the creditor may dispute, but the bankruptcy judge gets the final say.
Starting over won’t hold any meaning for a debtor if all of his properties are lost during the bankruptcy proceedings. With this in mind, West Virginia bankruptcy laws have made it a point to define assets as exemptions. The following are part of the exemptions:
• Your home for up to $25,000;
• Your vehicle for up to $2,400;
• 80% of earned, but unpaid wages;
• Household furnishings and fixtures, clothing, appliances, books and other items amounting to $8,000, but each item should under $400;
• Jewelry worth $1,000; and
• Benefits like health insurance, public benefits, and more.
A credit counseling education program is mandatory for every debtor who wishes to apply for bankruptcy.