West Virginia Chapter 13 Bankruptcy
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Michael G. Clagett
Clagett Law Office |
Individuals who reside, have a place of business, or own property
in West Virginia may qualify to file for bankruptcy in a federal court under
Chapter 13 (reorganization). Clagett Law Office serves individuals and
small businesses within
counties of
the
Northern District of West Virginia. Chapter 13, as with
other bankruptcy chapters, is not available to individuals who have
had bankruptcy cases dismissed within the prior 180 days under
specified circumstances. Eligibility is partly determined by
the
Bankruptcy Means Test.
A West Virginia Chapter 13 bankruptcy filing is a way for
individuals to undergo a financial reorganization supervised by
a federal bankruptcy court. The bankruptcy code anticipates the
goal of Chapter 13 as enabling debtor rehabilitation, for
income-receiving debtors, provided they fulfill a court-approved
plan.
The debtor's financial characteristics and the type of relief
sought play a critical role in the availability of Chapter 13.
In some cases the debtor simply cannot file under Chapter 13, as
he or she lacks the disposable income necessary to fund a viable
Chapter 13 plan. Furthermore, Title 11 of United States Code
sets forth debt limits for individuals to be eligible to file
under Chapter 13. Debt limits are subject to annual cost of
living increases.
In West Virginia Chapter 13 cases, the debtor proposes a plan,
usually prepared by a bankruptcy attorney, to pay his
creditors over a 3- to 5-year period. This written plan details
all of the transactions (and their durations) that will occur,
and the repayment according to the plan must begin within thirty to
forty-five days after the case has started. During this period,
his creditors cannot attempt to collect on the individual's
previously incurred debt except through the bankruptcy court. In
general, the individual gets to keep property, and his
creditors end up with less money than they are owed.
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