Virginia Bankruptcy Means Test
Not everyone who needs bankruptcy relief will qualify to file Chapter 7 bankruptcy in Virginia because their household income exceeds the income limits. The first step in every Chapter 7 online bankruptcy means test is a review of your income. If your gross household income is less than the median household income for a household of your size, you can file Chapter 7 bankruptcy in Virginia. If your income is greater than the median, the second step of the means test allows you to deduct certain expenses from your income, including taxes, health insurance, a housing and vehicle expenses, and payments you make on loans secured by your home or personal property. If you do not have anything left over after deducting the various allowed expenses, you qualify for Chapter 7 bankruptcy in Virginia.
Median income levels for Virginia
Virginia Median Income Standards for Means Test for Cases Filed On or After May 1, 2021 |
|---|
| Household Size |
| $6,717.50 |
What Are The Three Types Of Business Bankruptcy
Chapter 7 is the only form of business bankruptcy that is legally available to all types of businesses. You dont have to meet any requirements to file.
However, chapters 11 and 13 are only available for certain types of businesses and carry specific requirements.
Each type also has a unique legal process and can result in different outcomes for the business at hand. Heres what happens when a business owner files for each of the three types:
Complete The Bankruptcy Forms
Since a lot of the information you have to include in your bankruptcy forms is time sensitive, it makes sense to start this process after you have collected your documents and completed your course. One of the bankruptcy courts provides a link to a checklist of all documents you will need when filing Chapter 7 in Virginia. This checklist does not include any local forms, so it’s only a starting point. If you are working with an attorney, they will likely collect the necessary documents from you and get the rest of the information from you directly, then prepare everything pursuant to Virginia bankruptcy laws and procedures. If you are filing without an attorney, you will have to complete and file the bankruptcy forms yourself. Both, the national forms and local bankruptcy forms are available online for free.
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Take Bankruptcy Course 2
In order to receive a discharge in your Virginia bankruptcy, you have to take a second course after your case is filed. This course on financial management aims to provide you helpful tips and tricks on how to create a budget and manage your finances going forward. Similar to the first course, make sure you are taking it through a company approved to provide this course to folks filing bankruptcy in Virginia. Most folks choose to take this course online though some providers may offer it also by phone and in person. The second bankruptcy course tends to be just a little more expensive than the first one, but even here you should expect to pay no more than $50. Just keep in mind the amount of debt you are discharging by filing Chapter 7 bankruptcy in Virginia and you will see that this final expense is a small price to pay in exchange for your discharge. Finally, make sure you find out whether your course provider will file your certificate of completion with the Bankruptcy Court for you, or if you have to do so yourself.
Home Ownership And Bankruptcy
Obviously, one of the biggest concerns you may have when thinking about filing for bankruptcy is the possible loss of your principal residence. If you are dont have equity in your property , the other concern is the status of your payments on your mortgage. If you are in arrears with your mortgage payments, you will almost definitely lose your property if you file a Chapter 7. The Chapter 7 will stop foreclosure proceedings, but since it does not propose a repayment plan, the mortgage company will file a motion with the Bankruptcy Court to lift the automatic stay to begin or resume the process to sell your home. If you are current with your payments and have no equity, you should be able to keep your property.
If you are behind on your mortgage payments, you may want to file Chapter 13. You will be able to save your house if;you properly immediately restart making the regular payments called for under your loan and repay your mortgage arrears through your Chapter 13 Plan.
Finally, if you are in a position where you are unable to keep your home, you will be able to surrender the property to the mortgage company and discharge your mortgage debt.; Our office can assist you with this difficult process.
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Whats The Difference Between Chapter 7 And Chapter 13 Bankruptcy
The major difference is time Chapter 7 takes 4-6 months; Chapter 13 takes 3-5 years and money. You can have most, or all your unsecured debt discharged in Chapter 7 bankruptcy. In Chapter 13, some of your debt is forgiven, but only if you meet the conditions approved by the trustee and bankruptcy judge.
Assets And Exemptions In Chapter 7
In a Chapter 7 bankruptcy, or liquidation proceeding, a trustee will be appointed to your case to review the value of your assets and see if they can sell any of your non -exempt assets for the benefit of your creditors. An individual debtor is allowed to keep certain exempt property, but to the extent there is nonexempt property of value, the chapter 7 trustee can sell it. The proceeds generated from the liquidation of assets by the bankruptcy trustee will be paid to your creditors who have filed proofs of claim in your bankruptcy case.
It is important to understand that you can exempt significant property from this process and therefore retain these exempt assets. Any security interests which creditors have in your property, such as real estate mortgages or a lien on your car, will remain in place and are enforceable against the collateral even after you have received a discharge.
Therefore, even though you have no legal obligation to repay the debt, if you want to retain the property, you will have to pay whatever debt is owed on it.
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Heres Why You Need A Bankruptcy Attorney:
Hiring a Bankruptcy Petition Preparer is NOT a Solution
Pro se filers often hire a BPP as a cheap alternative to a lawyer in an attempt to save money. The BPP may tell you all you need to do is pay them just $75.00 and it will be easy to waive the Bankruptcy Courts $335.00 filing fee. This is often not the case and can eventually result in a dismissal of your case. A BPP cant provide legal advice when a waiver is denied or when other problems arise.
Let there be no doubta bankruptcy petition preparer is nothing more than a typist who, by law, isnt even allowed to give you legal advice. It isnt worth your time or money. Learn more about the risks and responsibilities of filing bankruptcy in Wisconsin without a lawyer, or book your free consultation with our Milwaukee area bankruptcy attorney today.
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Modern Law And Debt Restructuring
The principal focus of modern insolvency legislation and business debt restructuring practices no longer rests on the elimination of insolvent entities, but on the remodeling of the financial and organizational structure of debtors experiencing financial distress so as to permit the rehabilitation and continuation of the business.
For private households, some argue that it is insufficient to merely dismiss debts after a certain period. It is important to assess the underlying problems and to minimize the risk of financial distress to re-occur. It has been stressed that debt advice, a supervised rehabilitation period, financial education and social help to find sources of income and to improve the management of household expenditures must be equally provided during this period of rehabilitation . In most EU Member States, debt discharge is conditioned by a partial payment obligation and by a number of requirements concerning the debtor’s behavior. In the United States , discharge is conditioned to a lesser extent. The spectrum is broad in the EU, with the UK coming closest to the US system . The Other Member States do not provide the option of a debt discharge. Spain, for example, passed a bankruptcy law in 2003 which provides for debt settlement plans that can result in a reduction of the debt or an extension of the payment period of maximally five years , but it does not foresee debt discharge.
What Are The Alternatives To 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.The nature and extent of a debtors 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.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.
Bankruptcy Law Section of the Virginia State Bar;
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Where To File A Will
To begin executing a will, file it with the probate court. Usually, a will is filed with the probate court in the county where the wills owner has died or the county in which he last lived. Some states do not have separate probate courts, but your local telephone directory should provide numbers for your court so you can determine the proper place to file the will. Filing the will as soon as reasonably possible after the testators death has two advantages: it sets the probate process in motion more quickly, and it ensures probate begins long before any state deadlines.
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What Happens On The Day The Case Is Filed
The day you submit your bankruptcy forms to the court, sometimes called the filing date or the petition date, sets a few things in motion. For one, the automatic stay is triggered. This stops creditors from trying to collect a debt from you and even stops a garnishment. First, the clerkâs office assigns a case number, a judge, and a bankruptcy trustee to the case. Then it schedules the 341 meeting of creditors. The date of the 341 meeting determines a number of important deadlines for the bankruptcy case.
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What To Do After Chapter 7 Bankruptcy
Push the re-start button on your financial life.
Thats the first thing anyone should do after having debts discharged in Chapter 7 bankruptcy. Hopefully, that re-start button includes a plan for reduced spending and paying all bills on time.
The easiest way to do that is to draw up a budget that realistically accounts for your income and expenses.
If youre not good at that, call a nonprofit credit counseling agency and get some free assistance from their professional certified counselors. Helping consumers come up with an affordable monthly budget is their specialty.
They can give you the benefit of their training and experience at drawing up monthly budgets, plus tips on how to make the bottom line come out in your favor every month.
If you get in the habit of paying bills on time, you will begin to , and youll regain favor with lenders and credit card companies. A few years of good practice and you and your creditors will forget this ever happened.
How Long Does A Chapter 7 Bankruptcy Take In 2021
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In a Nutshell
Once filed, a Chapter 7 bankruptcy typically takes about 4 – 6 months to complete. The bankruptcy discharge is granted 3 – 4 months after filing in most cases.
Written byAttorney Andrea Wimmer.
Most Chapter 7 bankruptcy cases take between 4 – 6 months to complete after filing the case with the court. The order erasing eligible debts can be granted as early as 90 days from the date the case was filed. No-asset cases are typically closed a couple of weeks after the discharge date.
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Dealing With Your Car
Your car is considered and asset in your Virginia bankruptcy and if it is not yet paid off, then it is also a liability that has to be dealt with in a way that best sets you up for your fresh start. You can choose to surrender the vehicle to get out from under the loan, or you can reaffirm the debt and keep everything essentially the same. A reaffirmation agreement means that you will continue to be responsible for paying the car loan even after your discharge is entered. If you fail to make all payments as agreed, then the bank can still repossess your vehicle and, since the debt was not discharged, sue you for the balance left owing after the vehicle is auctioned off. If your car is paid for then depending on its value and the exemptions available for folks filing Chapter 7 in Virginia nothing at all may change.
How Do You File For Business Bankruptcy
Sole proprietors are the only business entity that can legally file for business bankruptcy without an attorney. Still, no business owner should file for bankruptcy on their own. The filing process is too arduous to be handled by someone simultaneously trying to run a business.
Step one is filing an official bankruptcy petition in https://www.uscourts.gov/about-federal-courts/court-role-and-structure your businesss local jurisdiction of the US Bankruptcy Court and paying the filing fee for your type of bankruptcy. This is followed by a slew of paperwork that depends on the type of bankruptcy and your business entity.
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The Timeline For Chapter 7
A Chapter 7 bankruptcyis usually the faster of the two personal filing types, but that doesnt mean that its a fast track to a clean slate. Chapter 7 filings take anywhere from four months to one year to complete. The specific time depends on the number of assets you have to liquidate and the details of your specific case.
Fact: About 2/3 of the filings submitted in the 3rd quarter of 2014 were Chapter 7.
So if you have a limited number of assets to liquidate and everything goes smoothly with your means test and the rest of your filing, then you could be done in just a few months. But if there are any complications or issues with the asset liquidation, your filing may take long. The majority are complete in six months, but there are Chapter 7 filings that take up to one year.
Keep in mind that once the filing is complete and all of your remaining balances are discharged, the Chapter 7 bankruptcy creates a negative item that remains on your credit for ten years from the date of discharge.
Speak To An Experienced Foreclosure Attorney Today
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified foreclosure lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a;local foreclosure attorney to discuss your specific legal situation.
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