Personal Bankrupcy Options

• People who have only consumer debts can opt to request forgiveness under Chapter 7 or a partial repayment plan through Chapter 13, according to the United States Bankruptcy Court Southern District of West Virginia and "How to File for Chapter 7 Bankruptcy." Chapter 7 bankruptcy negatively impacts a personal credit rating for 10 years from the date of filing, while Chapter 13 reports for seven years.
  
  

Business Bankruptcy Options

• Business owners who are willing to give up their business assets in exchange for debt forgiveness can file for Chapter 7, according to the United States Bankruptcy Court Southern District of West Virginia. A business Chapter 7 filing will not cover personal debts. But business owners, farmers and self-employed people who wish to partially repay both business and personal debts while preserving most assets can elect to file a Chapter 11 case.
  
  

Chapter 7 Income Qualification

• West Virginia residents pursuing a personal Chapter 7 case must economically qualify for this type of debt assistance, warns "How to File for Chapter 7 Bankruptcy." As of 2010, state residents who earned less than the annual median income automatically qualify to declare Chapter 7; the 2010 figure for a single West Virginia resident was $39,275, while the annual median income for a family of four was $58.479, according to the U.S. Trustee Program. People earning more money can only file Chapter 7 if they prove through a federal means testing formula that they can't repay debts and support their families.
  
  

Asset Considerations

• Most people filing personal bankruptcy in West Virginia will lose at least some of their existing assets, according to Bankruptcy Action. As of 2010, state residents filing any type of personal bankruptcy could preserve up to $25,000 of real estate equity, up to $1,000 of personal possessions, up to $8,000 of household goods and up to $2,400 of motor vehicle equity.
  
  

Costs

• As of 2010, it cost $299 to file any type of Chapter 7 case, as documented by the United States Bankruptcy Court Southern District of West Virginia. Personal Chapter 13 court costs were $274, while a Chapter 11 plan for business owners or self-employed people cost $1,039. These fees do not include any attorney costs; in cases of extreme financial hardship, the debtor can ask local bankruptcy court officials for fee waivers or installment payment plans.