Open: Menu
Bowen Ten Cardani, PC
Handicap Accessible

Schedule an Initial Consultation

Toll Free: 866-601-7371
Local: 804-767-6850

Toll Free: 866-601-7371 Local: 804-767-6850

Open: Practice Areas

Chapter 13 Archives

About Chapter 13 bankruptcy

Virginia residents who have substantial debt and a steady stream of income may consider using Chapter 13 bankruptcy to resolve their obligations. However, there are many things they should consider before entering bankruptcy, which can last for years.

U.S. consumer debt soars to new highs

A report released on Aug. 7 by the Federal Reserve reveals that the U.S. economy grew by 2.6 percent during the second quarter, but some experts are worried about the amount of revolving debt being carried by consumers in Virginia and the rest of the country. Consumer activity accounts for about 70 percent of the nation's economic output, and the data suggests that much of this spending is being done using high-interest credit cards.

Treatment of retirement accounts in bankruptcy

In 2016, over 770,000 people in Virginia and throughout the country filed for Chapter 7 and 13 bankruptcy. In a Chapter 7 bankruptcy, nonexempt assets are sold with the proceeds going towards paying off creditors. While unsecured debts can be eliminated, it may not be possible to discharge secured debts or student loan balances. Those who file for Chapter 13 bankruptcy reorganize and repay their bills over a period of up to five years.

Rule permits lawsuits against banks, credit card companies

Consumers in Virginia and across the United States can't be prevented from joining class action lawsuits against their banks or credit card companies by arbitration clauses. A rule issued by the Consumer Financial Protection Bureau is designed to stop companies from preventing consumers from taking legal action about issues that affect a large number of people.

Secured creditors must file proofs of claim on time

In Virginia bankruptcy cases and elsewhere, secured creditors are not required to file proofs of claim as unsecured creditors are. Nonetheless, a recent case set a precedent that if they do file a proof of claim to receive payments out of a Chapter 13 bankruptcy case, secured creditors must file it on time.

Dismissed bankruptcies could be a concern when financing a car

People going through a Chapter 13 bankruptcy in Virginia should take care to implement their court-ordered plans or they could face difficulties in obtaining credit in the future. There are a number of auto lenders that handle loans to consumers with past bankruptcies or other credit concerns.

Credit card debt expected to grow after interest rate hike

One sign that the Federal Reserve Bank believes that the American economy is recovering could also lead to much more expensive credit card debt for consumers in Virginia and across the country. For consumers with debt, including credit card debt, home equity lines of credit or adjustable-rate mortgages, monthly payments can be expected to rise following the Fed's interest rate hike.

Downsides of credit card debt

Many Americans accumulate credit card debt at some point during their lives. The average amount of credit card debt in U.S. households is $5,700. This may not seem like a huge amount, but it can have long-term consequences that Virginia cardholders may need to be aware of.

Bankruptcy ruling leads to confusion

Virginians who are considering filing for Chapter 13 bankruptcy might want to be aware of a recent Supreme Court decision that concerned the ability of debt collectors to file stale claims. The Supreme Court's ruling has confused attorneys around the country and may lead to additional litigation in the future.

The impact of discharged bankruptcies on credit ratings

Virginia residents sometimes struggle with overwhelming debts for years on end because they are convinced that filing for bankruptcy is ruinous to credit ratings and makes future borrowing extremely difficult, but data shows that this is rarely true. While bankruptcies remain visible to lenders for as long as 10 years, they are not usually a significant handicap to obtaining credit. There are also financial options, like secured credit cards, that are designed for consumers who are either establishing or rebuilding their credit profiles.

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.