how to file bankruptcy without an attorney in virginia

How much does a bankruptcy cost in Virginia?

The cost for filing a Chapter 7 bankruptcy is $306. This fee may not be waived but you may be able to pay it in installments. The fee of $281 for a Chapter 13 bankruptcy cannot be waived.

How long does the bankruptcy process take in Virginia?

In many cases, you will pay back a portion of your unsecured debts in a payment plan. Here's what you need to know about filing Chapter 13 bankruptcy in Virginia. It's slow. It can take 3 or 5 years.Apr 11, 2022

How do I file Chapter 7 bankruptcy in Virginia?

Steps in a Virginia Bankruptcylearn about Chapters 7 and 13.check whether bankruptcy will erase debt.find out if you can keep property.determine whether you qualify.consider hiring a bankruptcy lawyer.stop paying qualifying debts.gather necessary financial documents.take a credit counseling course.More items...

Do you lose all assets when you file bankruptcy Chapter 7?

When you file for Chapter 7 bankruptcy, almost all of your property becomes property of the bankruptcy estate. That doesn't mean you lose everything. The purpose of bankruptcy is to provide people with a fresh start—and part of that fresh start is keeping the things you need to hold down a household and job.

What happens after Chapter 7 is filed?

As soon as you file your Chapter 7 bankruptcy, you are given a case number and a bankruptcy trustee is assigned to your case. The bankruptcy trustee will oversee your bankruptcy filing, will review your bankruptcy forms, and may ask for additional documents to verify your information.Oct 2, 2021

What happens after discharge in a Chapter 7?

For most filers, a Chapter 7 case will end when you receive your discharge—the order that forgives qualified debt—about four to six months after filing the bankruptcy paperwork. Although most cases close after that, your case might remain open longer if you have property that you can't protect (nonexempt assets).

What is the income limit for filing Chapter 7 in Virginia?

If your total monthly income over the course of the next 60 months is less than $7,475 then you pass the means test and you may file a Chapter 7 bankruptcy. If it is over $12,475 then you fail the means test and don't have the option of filing Chapter 7.

What is Virginia debt relief?

What is Virginia Debt Relief? Virginia debt relief is the relief of unsecured debt, like credit card debt and student loan debt. Pacific Debt offers its debt relief program in the form of debt settlement. The program is aimed at getting Virginia residents out of debt for substantially less than what they currently owe.

Can you file bankruptcy and keep your house in VA?

Virginia allows single people to file Chapter 7 and keep your house only if you have very little equity. Virginia does provide much better protection for married couples who own a house.

What will I lose if I file bankruptcy?

Filing Chapter 7 bankruptcy wipes out most types of debt, including credit card debt, medical bills, and personal loans. Your obligation to pay these types of unsecured debt is eliminated when the bankruptcy court grants you a bankruptcy discharge.Dec 12, 2021

What happens to your bank account when you file Chapter 7?

In most Chapter 7 bankruptcy cases, nothing happens to the filer's bank account. As long as the money in your account is protected by an exemption, your bankruptcy filing won't affect it.Mar 21, 2022

What debts are not discharged in bankruptcy?

Other Non-Dischargeable Debts in Bankruptcy 401k loans. Other government debt such as fines and penalties. Restitution for criminal acts. Debt arising from fraud or false pretenses.Nov 2, 2020

How long does it take for creditors to stop asking for money after filing for bankruptcy in Virginia?

After Filing for Bankruptcy in Virginia. Your creditors will stop bothering you soon after you file. It takes a few days because the court mails your creditors notice of the "automatic stay" order that prevents most creditors from continuing to ask you to pay them.

How does bankruptcy work in Virginia?

The bankruptcy process falls under federal law, not Virginia state law, and it works by unwinding the contracts between you and your creditors —that's what gives you a fresh start.

How many bankruptcy districts are there in Virginia?

Virginia has two bankruptcy districts—Eastern and Western. Each has multiple locations serving various geographical areas. Clicking on the district name will take you to the court's homepage. On each website, you can access the district's local rules and instructions for filing your paperwork.

How much can a surviving spouse claim for a deceased spouse?

A surviving spouse can claim an exemption for the personal property of the deceased spouse up to $20,000. If there is no surviving spouse, the children may claim this exemption (Va. Code Ann. § § 23-38.81, 34-4, 34-18, 34-26, 34-27, 64.2-310) Public benefits.

Can spouses file for bankruptcy together?

Spouses filing together can double the exemption amount unless noted otherwise. COVID-19 recovery rebate exemption. You might be able to protect stimulus payments, tax credits, and child credits in bankruptcy with the federal recovery rebate exemption. Retirement accounts all filers can protect.

Can you lose your car if you file Chapter 13?

So you could lose your home or car if you're behind when you file. Chapter 13 bankruptcy. By contrast, Chapter 13 filers must pay creditors some or all of what they owe using a three- to five-year repayment plan. But the payment plan allows Chapter 13 to offer benefits not available in Chapter 7.

Can you keep property in bankruptcy?

Exempt and nonexempt property. You can keep property protected by an exemption or "exempt" property. When a bankruptcy exemption doesn't cover the property, you'll either lose it in Chapter 7 or have to pay for it in the Chapter 13 repayment plan. Choosing state or federal exemptions.

How long does it take to get credit counseling?

Credit Counseling. Individual debtors are generally required to obtain credit counseling from an approved provider within 180 days before filing a case, and to file a statement of compliance and a certificate of credit counseling furnished by the provider. Failure to do so may result in dismissal of the case.

What happens if you don't list your debts in bankruptcy?

Debtors must list all property and debts in their bankruptcy schedules. If a debt is not listed, it is possible the debt will not be discharged.

Why are bankruptcy cases randomly audited?

Individual bankruptcy cases are randomly audited to determine the accuracy, truthfulness, and completeness of the information that the debtor is required to provide. Please be aware that bankruptcy fraud is a crime.

Can a petition preparer give legal advice?

Petition preparers are barred by law from providing legal advice - they cannot explain how to answer legal questions or assist in bankruptcy court. Petition preparers must sign all documents they prepare; print their name, address, and social security number on such documents; and furnish copies to the debtor.

Can a corporation file for bankruptcy without an attorney?

Corporations and partnerships must have an attorney to file a bankruptcy case. Individuals, however, may represent themselves in bankruptcy court. While individuals can file a bankruptcy case without an attorney or "pro se," it is extremely difficult to do it successfully.

How long can you keep assets in Chapter 13?

The individual will be allowed to retain his or her valuable assets over a 3- to 5-year period.

What happens to assets in Chapter 7 bankruptcy?

The trustee of the bankruptcy will liquidate the assets, such as cars, homes, and other property of value in a Chapter 7 Bankruptcy proceeding, In exchange for dissolving all past due debts.

What is a non-attorney petition preparer?

Non-attorney Petition Preparers. If you file bankruptcy pro se, you may be offered services by non-attorney petition preparers. By law, preparers can only enter information into forms. They are prohibited from providing legal advice, explaining answers to legal questions, or assisting you in bankruptcy court.

How to help a bankruptcy lawyer?

The following is a list of ways your lawyer can help you with your case. Advise you on whether to file a bankruptcy petition. Advise you under which chapter to file. Advise you on whether your debts can be discharged. Advise you on whether or not you will be able to keep your home, car, or other property after you file.

What do petition preparers do?

A petition preparer must sign all documents they prepare for you; print their name, address and social security on the documents; and provide you with a copy of all documents. They cannot sign documents on your behalf or receive payment for court fees.

Can I file for bankruptcy without an attorney?

Individuals can file bankruptcy without an attorney, which is called filing pro se. However, seeking the advice of a qualified attorney is strongly recommended because bankruptcy has long-term financial and legal outcomes. Filing personal bankruptcy under Chapter 7 or Chapter 13 takes careful preparation and understanding of legal issues.

Can you file bankruptcy under Chapter 7?

Filing personal bankruptcy under Chapter 7 or Chapter 13 takes careful preparation and understanding of legal issues. Misunderstandings of the law or making mistakes in the process can affect your rights. Court employees and bankruptcy judges are prohibited by law from offering legal advice.

How does bankruptcy help a debtor?

Bankruptcy can help a debtor in a number of ways. The filing of a bankruptcy case automatically stops most collection actions against you, such as garnishments, foreclosures, and lawsuits, at least temporarily. This allows you to have a “breathing spell” during which you have the opportunity to put your finances in order and chart your financial future. While the bankruptcy case is pending, creditors cannot pursue most actions against debtors without bankruptcy court approval.#N#The ultimate goal of a bankruptcy filing is to obtain a discharge from certain debts that arose prior to the bankruptcy filing. Once the discharge is obtained, creditors cannot pursue collection efforts against the debtor, and those claims are permanently forgiven, unless a lien remains in place or you “reaffirm” your obligation to the creditor (see below for a description of reaffirmation of debts). If a lien remains in place, the creditor can pursue the collateral securing the lien even after bankruptcy. If you reaffirm a debt, and do not pay according to its terms, then the creditor can sue and collect from you personally even after bankruptcy.#N#Bankruptcy also affords a debtor an opportunity to reject ongoing obligations under certain types of contracts and leases, recover property or assets that were transferred or seized prior to the bankruptcy case, and remove certain kinds of liens. If a debtor gives property or pays money to others before filing, other than ordinary expenses, sometimes the trustee can recover that money or property from the person who has it.

What is the purpose of bankruptcy?

The primary purpose of bankruptcy is to give a debtor a “fresh start” through which some debts can be paid, restructured, or discharged.

What is exempt property in bankruptcy?

Exempt property is free of the claims of creditors and cannot be taken by the trustee to be liquidated. Virginia law determines the types and amount of exempt property.

What is considered a last resort in bankruptcy?

Bankruptcy is typically thought of as a “last resort.” Prior to a bankruptcy filing, it is common for financially troubled individuals or entities to consider alternatives such as consumer credit counseling or an out-of-court workout or debt restructuring in which obligations to some or all creditors are modified to provide the individual or entity with some financial relief. Some consumer credit counseling companies can help a debtor renegotiate amounts owed or payment terms as an alternative to bankruptcy. However, not all “credit rescue” companies are legitimate. Virginia law also provides for an “assignment for the benefit of creditors” under which another individual handles the disposition of assets and proceeds for the benefit of creditors.#N#The nature and extent of a debtor’s financial problems will dictate the course of action, or the legal procedure, that should be followed in a particular case. Individuals or entities who are experiencing such problems should consult with knowledgeable and competent professionals, including attorneys, before making such a decision.#N#If you need assistance in selecting an attorney to assist you with resolving your financial problems, the Virginia State Bar offers a Lawyer Referral Service through which you can obtain the names, addresses and phone numbers of attorneys in your area who practice bankruptcy law.

How long does it take to rescind a reaffirmation agreement?

A debtor may rescind a reaffirmation agreement within sixty days after signing the agreement.

What is Chapter 7 liquidation?

In a Chapter 7 liquidation case, sometimes called “straight bankruptcy,” a trustee collects and sells the debtor’s nonexempt assets (as explained below, you keep, or “exempt,” some assets such as basic household goods and some money) and pays the proceeds to creditors in order of priority.

What is a 341 meeting?

In the early stage of a bankruptcy case, you must attend a meeting of creditors (also called a Section 341 meeting) at which you must provide information and answer questions under oath from the bankruptcy trustee, the United States Trustee, or your creditors. The bankruptcy judge does not participate in such meetings.

The Means Test

The means test is used to determine if you are eligible to file for Chapter 7 bankruptcy. Under this test, the court analyzes your income for the 6 months prior to your filing. compared to the median income in the state of Virginia. If your income is determined to be under the median income, you are eligible for Chapter 7.

Chapter 7 and Chapter 13

Chapter 7 and Chapter 13 bankruptcy are some of the most common forms of personal bankruptcy. Chapter 7 bankruptcy is seen as a form of liquidation as it allows for the quick discharge of personal debts. Sometimes referred to as “straight bankruptcy,” Chapter 7 bankruptcy does not discharge all debts, but may delay foreclosure proceedings.

Preparing to File for Bankruptcy

Preparing to file for bankruptcy does require a fair amount of paperwork. Take time to organize all of your financial information including:

Fees, Automatic Stays, and Trustees

You may file for bankruptcy yourself, or your attorney may file on your behalf. The current cost of filing Chapter 13 bankruptcy is $310. Chapter 7 bankruptcy filing costs $335. Neither fees can be waived.

Choosing the Right Bankruptcy Lawyer

Of course, one of the most important decisions you make after deciding to file for bankruptcy is who will serve as your bankruptcy lawyer. Bankruptcy law is a complicated matter and not something well known by the average person or even the average lawyer.

What are the requirements for a Chapter 7 bankruptcy repayment plan?

In addition to the general requirements listed above, the repayment plan must pass each of the following three tests: 1) It must be delivered in good faith. 2) Unsecured creditors must be paid at least as much as if a Chapter 7 bankruptcy had been filed.

What is automatic stay in bankruptcy?

Automatic Stay. Once you have filed your paperwork with the bankruptcy court, an automatic stay immediately goes into effect. This provision prevents creditors from making direct contact with you or staking a claim on any of your property from the day of filing forward. This will stop any foreclosure proceedings.

How much does it cost to file for bankruptcy?

The cost for filing a Chapter 7 bankruptcy is $306. This fee may not be waived but you may be able to pay it in installments. The fee of $281 for a Chapter 13 bankruptcy cannot be waived. If you are filing a Chapter 13 bankruptcy, a proposed repayment plan must also be submitted.

What happens if you file for foreclosure in Virginia?

This will stop any foreclosure proceedings. Upon filing, the court will assume legal control of your debts and any property not covered by your Virginia exemptions. A trustee will be appointed to your case by the court. The job of the trustee is to see that your creditors are paid as much as possible.

How long does a trustee have to challenge a debtor?

Trustees and creditors have 60 days to challenge the debtor’s right to a discharge.

What happens if your income exceeds the median?

If your income exceeds the median, the remaining parts of the means test will be applied to determine if you can file Chapter 7 or if you must file Chapter 13. (See Virginia Means Test) To begin the bankruptcy process you must itemize your current income sources; major financial transactions for the last two years; monthly living expenses;

How long do you have to pay into a Chapter 13?

3) All disposable income must be paid into the plan for at least three years (you may use up to five years in order to meet the second test that you pay at least as much as in a Chapter 7). If you have filed Chapter 13, you must begin making your plan payments.