Vermont Bankruptcy Lawyers
Regain control of your finances with a Vermont bankruptcy attorney.
If you are feeling crushed by the weight of your debts, you deserve to get some relief. A Vermont bankruptcy attorney can look at your debts and income and help you decide whether personal bankruptcy might work for you.
Understanding your options is the first step toward taking back control of your financial life.
Don't delay—just fill out the free case evaluation form below or call 877-833-2410 today to arrange a no-obligation consultation with a local Vermont bankruptcy lawyer and get the information you need to decide on your next steps.
Vermont Bankruptcy Options: Chapter 7 vs Chapter 13
Bankruptcy filers in Vermont typically chose one of two common forms of personal bankruptcy to help them meet their debt-relief goals. These forms are Chapter 7 and Chapter 13 bankruptcy, and each provides unique advantages in different situations.
Could one be best for you? Let's take a look at how each one works.
Chapter 7 - Forgiveness of Unsecured Debts
Chapter 7 bankruptcy is designed to provide a relatively quick elimination of unsecured debts, such as credit cards, medical bills, and payday loans. Some Chapter 7 cases involve a sale of the debtor's assets (called liquidation), but state laws provide protections for bankruptcy filers.
If you file Chapter 7 bankruptcy in Vermont, you'll likely be able to keep the following assets:
- Homestead: Real property up to $125,000
- Automobile: Motor vehicle up to $2,500
- Wages: 75% of earned but unpaid wages
- Tools of Trade: Books and tools up to $5,000
- Personal Property: Wedding ring full exempt; other jewelry up to $500; Appliances, clothing, household goods up to $2,500
Thanks to these protections, many Chapter 7 filers do not have to surrender much or any property to the bankruptcy court.
Chapter 7 is also designed for those without much regular income. If you wish to file Chapter 7, you must qualify under bankruptcy's means test, which compares your household income to the median in the state of Vermont, based on household size.
Those who don't meet the requirements of the means test, or who have assets that may be at risk in a Chapter 7 case, often turn to Chapter 13 bankruptcy.
Chapter 13: Structured Repayment of Debts
Chapter 13 bankruptcy provides a court-structured reorganization of debts for those with a regular monthly income.
In a Chapter 13 filing, the court will help you devise a fair repayment of creditors, based on what you can afford. This plan typically lasts between three and five years. Secured debts, such as mortgage debt and car loans, are given priority, and any unsecured debt left at the end of the plan is typically forgiven.
Chapter 13 may also be able to prevent home foreclosure. A bankruptcy filing comes with a court order known as the automatic stay that prevents all collection efforts by creditors, and the repayment plan may allow you to completely catch up on your mortgage debt.
Discuss Your Bankruptcy Options with a Vermont Attorney
If you're considering filing for bankruptcy protection, you can talk to a local attorney. Whether you have questions about the process or qualifying for bankruptcy, an attorney can be a valuable resource and guide.
Connecting with an attorney in your area is simple. Just use the free case review form on this page to arrange your initial, no-obligation consultation with a bankruptcy lawyer today.
Laws may have changed since our last update. For the latest information
on your state's bankruptcy laws, speak to a local bankruptcy