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Chapter 7 and Chapter 13 Bankruptcy in VA

Are You Considering Filing for Bankruptcy? Know Your Options

Are you looking to learn more about Chapter 7 and Chapter 13 bankruptcy? Wilson C. Pasley, PLC Attorney at Law in Roanoke, VA, is here this month to explore these debt relief options. Those looking to file for bankruptcy know how stressful and upsetting it can be. The idea of possibly giving up property and assets, like a house or vehicle, can be frightening. However, there are ways to make this situation of restructuring debt more manageable.

When filing for bankruptcy, there are some guidelines you must follow to get the approval. There are also some debts that you cannot pay off through bankruptcy, including:

Student Loans

Child Support

Spousal Support

Some tax debt

Read on to learn more about Chapter 7 bankruptcy and Chapter 13 bankruptcy. If you’re looking to get a hold on your finances, the right bankruptcy attorney can help.

Chapter 7 Works for Personal and Business Bankruptcy

Chapter 7 bankruptcy works for both personal and business finances. Chapter 7 gives a “fresh start,” which we will get more into soon. The IRS defines this type of bankruptcy as providing “relief to debtors regardless of the amount of debts owed.” This includes whether or not the debtor is solvent or insolvent.

Chapter 7 is for those who cannot make payments and need to completely eliminate debt. This type can get rid of unsecured debts, like medical bills and credit card debt. It can also help to stop wage garnishment and stop creditor harassment.

Whether your personal finances are strapped, or you had a hit to business revenue, Chapter 7 bankruptcy can help. Wilson C. Pasley of Roanoke, VA, can help you to understand Chapter 7 and determine if it’s right for you.

Not Everyone Can File for Chapter 7 

It’s important to know that not everyone can file under Chapter 7 bankruptcy. There is a means test that potential debtors must pass before filing. This test will see if your income falls under a certain amount. If it doesn’t, then the court must assess your disposable income. This will determine whether or not you may file for Chapter 7.

You Can Get a “Fresh Start” with Chapter 7 

The appealing part of Chapter 7 bankruptcy is that debtors can receive a “fresh start.” This means that the bankruptcy will wipe out debts, like medical bills and credit cards. However, you will most likely have to forfeit some assets to make this happen. This may include signing over your home, vehicles, or other property.

Chapter 7 bankruptcy will take time to process, sometimes as long as six months. It’s good to know ahead of time that you won’t immediately see debt relief.

If you are afraid of losing your home, Chapter 7 may not be the way to go. Attorney Pasley will discuss your options and work to protect your rights during the bankruptcy process.

Chapter 13 Bankruptcy Helps People Keep Their Assets

Unlike Chapter 7, Chapter 13 bankruptcy does not completely wipe out debts. When choosing Chapter 13, you will design a payment plan that goes over the course of three to five years. This allows you to keep your property and avoid foreclosure.

Again, student loans, some taxes, and things like child or spousal support do not count under Chapter 13 bankruptcy. Chapter 13 bankruptcy is unavailable for businesses.

Guidelines for Debt Relief by Filing for Chapter 13 

When choosing Chapter 13 bankruptcy, you can make any amount of money and have any amount of property. There is no need to pass a means test because you will be paying off the debt overtime.

According to, an individual cannot have more than $419,275 in unsecured debts or $1,257,850 in secured debts. There are other guidelines, however, that clients must follow to successfully complete Chapter 13 bankruptcy:

Make a good faith repayment agreement

You must be able to afford the payments

The plan must be your best effort for repayment

Keep in mind that with your plan, creditors must receive the same amount of money as they would under Chapter 7. If you’re unsure if you can afford this, then Chapter 13 may not be the right debt relief choice.

Let Wilson C. Pasley Help with Chapter 7 and Chapter 13 Bankruptcy

Any trouble with personal or business finances is scary. The future may feel unclear and you may fear foreclosure or loss of property. Wilson C. Pasley, PLC Attorney at Law works with clients throughout the Roanoke area who are filing for bankruptcy. There are many guidelines and hoops to jump through when looking into bankruptcy. Our bankruptcy attorney will help you every step of the way. Attorney Pasley will listen to your concerns and review your current situation. He can then help you to make an educated decision to file for bankruptcy.

Wilson C. Pasley, PLC handles more than just Chapter 7 and Chapter 13 bankruptcy matters. He can assist with divorce, criminal defense, business formation, and much more.


Are you looking for a strong bankruptcy attorney in the Roanoke Valley? Call Wilson C. Pasley, PLC Attorney at Law in Roanoke, VA, at (540) 342-2221 or view our Facebook for updates. Ask us about Chapter 7 and Chapter 13 bankruptcy.