Bankruptcy 101

There are many misconceptions about bankruptcy.  For most it need not be a difficult or complicated process.  It is a form of relief the law allows to eliminate or greatly reduce your debt, while still being able to keep most or all of your important assets. With the guidance of one of our experienced attorneys you can start on the road to financial freedom now! 


The financial stress that leads to a bankruptcy filing can be one of the darkest periods in a person’s life, along the lines of other major life events such as divorce. Most of the times, the circumstances that led to the financial setbacks are out of your control: job loss, decrease in pay, illness or injury, divorce, or caring for an elder relative are just a few of the reasons a person needs to file bankruptcy that we see every day. The Norfolk bankruptcy lawyers at our firm have over 80 years of combined experience and understand the hardships that lead to a decision to file bankruptcy. 

When you file bankruptcy, the federal court issues an automatic stay

This stops nearly all creditor collection actions, including garnishments, warrants in debt, foreclosure, and repossession. No longer able to withdraw money from your bank account or paycheck, your creditors will need to communicate with your lawyer to discuss repayment options or stop all collection actions altogether. 

Do you live in fear of creditor harassment?

Are you afraid to pick up the phone and talk to creditors?  Are aggressive creditors calling you at work and calling your relatives?  If so, it is time to look for solutions and put a stop to these stressful calls. An experienced lawyer can help you stop the threatening calls and the warrants, garnishment actions, and levy actions by creditors. 

Bankruptcy; TRUE or FALSE?

  1. When the bankruptcy laws were changed the ability to file bankruptcy was eliminated.

FALSE.  Bankruptcy is still a viable option. Even though the bankruptcy laws were changed, most people can still get a fresh start under Chapter 7 by eliminating unsecured debts such as credit cards, personal loans, payday loans and medical bills. If Chapter 7 is not an option for you, Chapter 13 will allow you to greatly reduce your debts in most cases, by adjusting your payments based on your budget and other financial factors. 

  1. My creditors will take over everything if I file bankruptcy.

FALSE.  In fact, filing bankruptcy helps even the playing field with your creditors. When you file your case collection activity by your creditors stops. This includes harassing phone calls, garnishments, repossessions and foreclosures. In addition, Chapter 7 allows you to wipe out most unsecured debts. Chapter 13 allows you to reduce your debts by making orderly payments under a repayment plan that is designed to fit your financial circumstances. 

  1. Filing for bankruptcy will cause me to lose all of my property. 

FALSE.   Most people who file bankruptcy are able to keep most or all of their property. Depending on your circumstances, you can eliminate or greatly reduce your debt while protecting assets from your creditors. 

  1. I will never be able to get credit again.

FALSE.  Filing bankruptcy can actually help rebuild credit. In less than 2 years from receiving your discharge of your debts, your credit rating can improve. 

  1. Bankruptcy is complicated and costly.

FALSE.   The attorneys at Winchester, Pedigo PLC will guide you through the process step by step. We charge a flat fee in most cases.  Once we file your case, we can stop collection activity and give you peace of mind. 

To get started call (757) 348-2622 for a free consultation. The attorneys at our firm represent clients in all cities in Hampton Roads. 


Are you struggling with mounting debts that you can’t keep up with?


Chapter 11 is a form of bankruptcy that involves restructuring finances in order to repay debts over time.

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Chapter 13 bankruptcy allows debtors who have a regular income to keep their assets and repay their debts over time.

Need advice now? Your first consultation is free!
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The information contained on this website is presented for informational and marketing purposes only and is not to be understood as legal advice. You should consult an attorney for advice respecting your individual needs. Winchester, Pedigo  PLC looks forward to speaking with you about your particular needs. Please note, however, that the mere act of contacting our firm does not create an attorney-client relationship. As a result, you should never send any confidential information to our office until a Representation Agreement has been signed by both you and Winchester, Pedigo PLC. 

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