WILL I LOSE MY PROPERTY?
Generally not. In Virginia, you are allowed to exempt most necessary assets such as a 401K or retirement plans, furniture, a vehicle, medical needs, work related items and up to $5,000 per person of other assets. If you own real estate with over $5,000 worth of equity or other assets worth over $5000, the Bankruptcy Trustee may take that property and sell it to pay your creditors. If your equity is over $5,000, you may be able to file a Chapter 13 that allows you to pay back your creditors over a sixty month plan.
HOW LONG DOES IT TAKE?
If you bring your documents and all necessary information when you come in, we may be able to file you the same day. This will stop repossessions, garnishments, collections and creditor calls. We are a computerized law firm and can file your petition electronically with the court.
AM I ELIGIBLE TO FILE?
You may file if you have not received a prior chapter 7 bankruptcy discharge within the past 8 years or 6 years for a chapter 13 discharge that paid less than 70% of the debt. If you are not eligible to file a Chapter 7, you may be able to file a Chapter 13.
Chapter 7 Bankruptcy
Chapter 7 Bankruptcy will eliminate or "DISCHARGE" most kinds of debts.
Some types of Debts that can be discharged are:
1. Credit cards
2. Personal loans
3. Repossession deficiency charges
4. Past rent
5. Payday loans
6. Some tax debts
7. Medical Bills
8. Judgements against your driver's license (unless alcohol involved)
Some types of debts that will NOT be discharged are:
1. Student loans
2. Alimony or child support
3. Fraud or embezzlement
4. Some tax debts
5. Damages from an auto accident while under the influence of drugs or alcohol
6. Criminal Fines/Penalties
Frequently Asked Chapter 7 Questions
IS MY INCOME A FACTOR?
Yes. As of 2005, the "Means Test" was established to determine the amount of debt, if any, a person must repay when filing bankruptcy. The court has guidelines based on the size of your household and the area where you live to determine the maximum amount of income you can earn without having to repay your creditors. If you do not qualify for a liquidation bankruptcy, you may be able to file a chapter 13 bankruptcy and repay some or all of your debt.