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TEL 804.794.8070

Located in Midlothian, Virginia across
from Chesterfield Towne Center

Bankruptcy

We are here to help you find debt relief

Your bills have piled up, and you are doing your best to pay them off, but it’s just not working the way you hoped it would. In fact, you may even be getting deeper into debt as you use new credit to pay off other creditors. You are not alone. Millions of Americans are finding themselves in the very same situation. We understand the stress this is putting on you and your family, and we want you to know that we can help you reduce or eliminate this burden.

We highly recommend that you consult with one of our attorneys for debt and financial planning. We do not recommend debt counseling and negotiation services promoted by anyone other than an experienced bankruptcy attorney. There are many scams out there that prey on financially stressed individuals; these services usually produce greater loss.

You have rights

If you are unable to work out affordable payment plans with your creditors or if your debts have become overwhelming, filing bankruptcy may be the right choice for you. Not only will it give you instant relief from your debts, it will allow you the opportunity to start fresh and begin to rebuild your credit again. Once you file bankruptcy, you are under the protection of the Automatic Stay and your creditors cannot take any action against you including, foreclosure, repossession, garnishment, or even calling you on the phone.

The single biggest mistake people make is to wait too long to get expert help. Whether you call our firm or not, call an expert bankruptcy attorney sooner rather than later.

What is a Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy is called a “liquidation” bankruptcy. The purpose of filing a Chapter 7 case is to obtain a discharge of your existing debts.

When you file for Chapter 7 bankruptcy you can wipe out debt from:
Credit cards

  • Store loans
  • Checking accounts overdrafts
  • Payday Loans/Cash Advances
  • Personal loans
  • Medical/dental bills
  • Income tax obligations more than three years old
  • Your mortgage (if you want to walk away from the house)
  • Your car payment(s) (if you want to let them go)

Some debts cannot be discharged in a Chapter 7 such as:

  • Certain tax obligations (less three years old; 941 taxes; sales and use taxes)
  • Child support and spousal support
  • Court ordered fines and restitution
  • Student loans
  • Debts for personal injuries caused by driving while intoxicated
  • Debts obtained through fraud or deception

Filing a Chapter 7 Bankruptcy in Virginia is usually a quick and painless process. In a Chapter 7 unless your property is exempt through Virginia state exemptions, the trustee can take your property and liquidate it for the benefit of your creditors. You should consult an attorney for a careful evaluation of your property and available exemptions.

What Property Exemptions are available in Virginia?

Common exemptions in Virginia are:

  • Automobiles with equity up to $2,000 ($4,000 for married couples)
  • Household furnishings with a value up to $5,000 ($10,000 for married couples)
  • The home you live in with equity up to $5,000 ($10,000 for married couples)
  • Pension Plans, 401ks, IRAs, 403bs, and other employer-sponsored retirement plans.

Exemption planning is one of the most important aspects of your Chapter 7 and should not be filed without assistance from a bankruptcy attorney.

What is a Chapter 13 Bankruptcy?

A Chapter 13 bankruptcy is also called a wage earner’s plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. The plan must be approved by the court to become effective. Once the plan is approved, creditors will be prohibited from collecting their claims directly from the debtor. The debtor must make all payments under the terms of the plan to keep the court protections and receive a discharge.

Who can File a Chapter 13 Bankruptcy?

The most important criteria for a person to be able to file for Chapter 13 bankruptcy is that the individual must have a regular income. There are a few other criterions that must be met for filing a Chapter 13 Bankruptcy; your attorney will be the best person to introduce you to these!

How does a Chapter 13 differ from a debt consolidation service?

In a Chapter 13, the court has the power to protect the debtor from the actions of creditors. A private debt consolidation service does not. The court has the power to prohibit creditors from garnishing wages, foreclosing on the debtor’s home and from repossessing the debtor’s automobile. The court also has the power to force certain creditors to accept a Chapter 13 plan that pays only a portion of the claim. Debt consolidation services have none of these powers and they usually cause you to waste much of your income and assets.

If you are struggling with debt, but aren’t sure whether a Chapter 7 or Chapter 13 is the best option for you, we would be happy to speak with you and give you legal advice. We do not charge a consultation fee for bankruptcy cases; you may reach us at 804-794-8070. We look forward to hearing from you.