- Bankruptcy is a legal process that absolves individuals of most of their debt obligations. Some debts that are not absolved by bankruptcy are student loans, child support and back taxes. In West Virginia, an individual has three basic legal options for filing bankruptcy: Chapter 7, Chapter 11 and Chapter 13.
- Chapter 7 bankruptcy is also called liquidation in West Virginia, and it immediately erases most debts (apart from those excluded by law). Liquidation still requires the individual to pay off any debts that remain after the bankruptcy is processed.
- West Virginia's Chapter 11 bankruptcy is also known as debt reorganization, and it allows an individual to petition their debtors to lower their total debt or extend their repayment period.
- Chapter 13 serves to reorganize and consolidate debts into a payment plan. Filing for Chapter 13 bankruptcy requires the individual to have a steady job (with disposable income), and allows them to keep many of their assets, including a primary residence and a vehicle.
- Making the decision to file for bankruptcy is difficult, but it can offer a second opportunity at financial freedom from creditors. If you have mounting debt that cannot be paid off within five years or are facing a financial catastrophe, seek out a lawyer in West Virginia to discuss your legal options.