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How To File Bankruptcy In Va

Western District Of Virginia Requirements

How to File Bankruptcy in Virginia

The Western District has locations in Roanoke, Lynchburg and Harrisonburg and provides a detailed directory of which division handles each case . Neither Lynchburg nor Harrisonburg accept payments by check or cash, so make sure you bring a money order with you when filing your Virginia bankruptcy in these locations. If you are amending your creditor schedules, the Western District has a local form to provide notice of the amendment.

What Property Can A Debtor Keep

The Bankruptcy Code allows the individual debtor to retain certain property as exempt. 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. The debtor is entitled to a homestead exemption which allows each debtor to claim a one-time exemption of up to $5,000 in any kind of property. Debtors over the age of 65 are entitled to claim a homestead exemption of up to $10,000. The debtor is also entitled to a specific exemption, sometimes referred to as the poor debtors exemption, in different types of property . Other types of property may also be exempt under Virginia law. You must claim the property as exempt in your bankruptcy schedules and, to claim the homestead exemption, you or your lawyer must also properly prepare and file a homestead deed within a certain time limit. Creditors or the bankruptcy trustee can challenge the type or amount of the exemptions claimed by the debtor. Once you have claimed an exemption, you cannot claim it again in another case.

A debtor may reaffirm his or her obligations to a secured creditor who holds a lien on a house, car, or other significant item. A reaffirmation agreement must be in writing, signed by the debtor and, sometimes, the debtors attorney, and must be filed with the bankruptcy court. A debtor may rescind a reaffirmation agreement within sixty days after signing the agreement.

File Bankruptcy Petition And Other Forms

To file bankruptcy, your attorney or you must file a variety of bankruptcy forms. For example, you may be required to provide the financial affairs and schedules below:

  • List of all the creditors and the amounts of those claims
  • Your source of income including frequency and amount
  • All of the property you own
  • A comprehensive list of your living expenses

There are also local rules and forms that may be specific to Virginia. If you are filing bankruptcy with an attorney, they should help guide you through the local requirements. For example, see the local rules in Virginia based on the district:

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Bankruptcy Forms For Fairfax Virginia

There are about 23 federal forms involved in a bankruptcy filing, not including the local and optional forms that you might need for your case.

The Petition is a series of different forms that outline your financial resources and obligations. It is how you show that you are unable to make ends meet. At filing, you will need to present a few other documents including your certificate of financial counseling, your redacted tax returns and pay stubs.

For a comprehensive overview of the voluntary petition, A/B, C, D, E/F, G, H, I, J, or other forms read theVirginia guide for bankruptcy forms. Below are details for state and local unique forms.

If you feeel overwhelmed or want assistance,check out Upsolve’s free bankruptcy assistance and see if youâre a good fit for our service. We have a free service that makes the bankruptcy process super simple for residents of Virginia.

What Are The Downsides Of Filing For Bankruptcy In Virginia

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Loss of properties and assets is one of the significant downsides of filing for bankruptcy in Virginia. Individuals filing for Chapter 7 bankruptcy may lose a majority of their properties to pay off creditors. Furthermore, debtors with much equity in their homes may lose it during a chapter 7 bankruptcy, unless protected by the state bankruptcy exemption.

Likewise, filing for any type of bankruptcy depresses the credit score – this reduces the debtors chances of getting a loan from credit facilities since they are classified as risky borrowers”. After filing for bankruptcy, debtors may experience stigma when renting properties from landlords.

In a Chapter 13 bankruptcy case, debtors must repay all or part of unsecured debts over a fixed period. No doubt, debtors are left with low disposable income during the repayment period.

Co-signers to a personal loan are forced to pay part of the debt during bankruptcy unless they apply for bankruptcy exemptions.

Bankruptcy, like most legal procedures, offers both downsides and benefits. Debtors filing for bankruptcy may experience the following benefits:

  • The court issues an automatic stay to stop all recollection efforts by creditors
  • Bankrupts grants debtors relief from a significant part of their debts
  • Under Chapter 11 or 13 bankruptcy, debtors or businesses can continue to operate without selling off assets.

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What Type Of Bankruptcy Should You File In Virginia

Persons or businesses in Virginia can file for bankruptcy based on the desired result. An individual may file for chapter 7 bankruptcy if they want total and fast relief from all unsecured debts. However, they may file a chapter 13 if they want to protect their assets from being liquidated. Alternatively, persons may file a chapter 13 if they want to avoid liquidation of assets.

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.

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Collect Your West Virginia Bankruptcy Documents

The documents you have to submit to the court when you file a Chapter 7 bankruptcy in West Virginia will be reviewed closely by a number of interested parties. Additionally, you have to sign the documents under penalty of perjury before actually filing bankruptcy in West Virginia and failure to disclose information can cause serious trouble. That is why the first step to completing the forms is collecting the documents that will help you make sure you are not accidentally leaving anything out. A very helpful tool to make sure you are listing all your debts and have accurate addresses for all creditors is your credit report. You are entitled to a free copy from each one of the three credit reporting agencies every year and can request all of them online. You will also need every paycheck stub you have received in the last 6 months to calculate your current income, and your most recent federal income tax return for historical income information. Finally, since filing Chapter 7 in West Virginia is meant to provide you with a fresh start, you should gather the last few months of bank statements, so you can calculate a realistic budget for life after your West Virginia bankruptcy has been filed.

What Types Of Mortgage Can I Get After Bankruptcy

The Benefits of Filing Bankruptcy in Virginia

After bankruptcy and after fulfilling the required waiting period, you can get a conventional mortgage that follows Fannies or Freddies guidelines. You can also get an FHA mortgage, which you may have an easier time qualifying for because it has a lower minimum credit score requirement and shorter post-bankruptcy waiting periods. VA loans and USDA loans may be available to you as well if you meet the requirements.

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Virginia Bankruptcy Process How To File Bankruptcy In Virginia

2005 Bankruptcy Act Credit Counseling The 2005 Bankruptcy Act requires all individual debtors who file bankruptcy on or after October 17, 2005, to undergo credit counseling within six months before filing for bankruptcy relief and to complete a financial management instructional course after filing bankruptcy.

2005 Bankruptcy Act Means TestUnder the 2005 Bankruptcy Act your income and expenses will be analyzed to determine if you qualify to file a Chapter 7 or if you must file Chapter 13. To apply the means test, the courts will look at the your average income for the 6 months prior to filing and compare it to the median income for Virginia. If the income is below the median, then you may choose Chapter 7. 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.

Gathering PaperworkTo begin the bankruptcy process you must itemize your current income sources major financial transactions for the last two years monthly living expenses debts and property . You should also collect your tax returns for the last two years, deeds to any real estate you own, your car titles, and the documents for any loans you may have.

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.

What Are Virginia Bankruptcy Exemptions

Virginia bankruptcy exemptions protect specific properties from liquidation. Individuals or entities filing for bankruptcy can opt for Virginia bankruptcy exemptions to cover the following types of assets and properties.

  • Death benefits of military personnel
  • Personal properties, such as clothing, burial plots, furniture up to $1,000, and permanent disability benefits
  • Pensions

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Benefits Of Filing A Chapter 11 Bankruptcy In Virginia

Under chapter 11 bankruptcy, debtors retain control over their assets. Also, they get the freedom to restructure debts and spread payments over a long time. Debtors may also choose to liquidate certain assets or properties to settle debts. Bankruptcy judges also issue an automatic stay to prevent creditors from contacting debtors.

Estimate Whether You Will Qualify For Chapter 7 Bankruptcy In Virginia

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As stated above, you often have to qualify to file Chapter 7 bankruptcy. Qualification is based on US means testing. The means testing is based on the household income and size of the household for Virginia.

Bankruptcy Means Test In Virginia

The bankruptcy means test in Virginia often changes every 6 months. To help, we built the following bankruptcy means test calculator to help you estimate qualification, understand the cost and compare bankruptcy alternatives.

Virginia Chapter 7 Bankruptcy Income Limits

# of People

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Can You File Bankruptcy On A Car Loan

Iâm having trouble paying my car loan, but I pay my other bills and debts regularly. A friend told me that filing for bankruptcy would wipe out my car loan obligation, but I can still keep the car. Is that true? Can I file bankruptcy on a car loan and keep the car?


filing will also include all of your other debts, not just the car loan

  • Chapter 7, which is usually for people who canât repay their debts.
  • Chapter 13, which is a reorganization of how the debt is paid.

afterbankruptcy lawyercourt-appointed trustee will sort out your repayment planthree to five yearseven if youâre behind on paymentsreview your car insurance and compare quotes

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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Virginia Bankruptcy Law: Can I Discharge My Tax Debt

Determining whether you should file for bankruptcy can be a difficult decision and once youve decided that bankruptcy is for you, it can be just as difficult to successfully navigate the bankruptcy process and take advantage of all opportunities available under the bankruptcy code. One common misconception, for example, is that you cant discharge taxes under a bankruptcy filing. But in the Commonwealth of Virginia, however, you can discharge some tax debt if certain technical requirements are met.

At the Law Office of Rebecca L. Evans, our lawyers understand the difficulties you face when filing for Chapter 7 or Chapter 13 bankruptcy. Thats why we work tirelessly to make sure all of your options are thoroughly researched and realized, striving constantly to get you the best possible outcome in your bankruptcy case.

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Chapter 7 Will Do The Following For You:

Can an Individual with High Income Obtain Bankruptcy Relief in Virginia?
  • Protects you from Creditors Once you file for bankruptcy protection, your creditors CANNOT call you and demand payment nor proceed with lawsuits, judgments, or garnishment of your wages or financial accounts.
  • Affords you a fresh start Eliminating most of your debts and allowing you an opportunity to re-build your credit from a poor credit score.
  • Allows you to keep your car and/or home Eliminating most of your unsecured debts , and permitting you to keep your home or car so long as you maintain your payments current, while wiping out your personal liability on the mortgage or car note.
  • Prevents continued damage to your credit report Filing for Chapter 7 Bankruptcy stops negative reporting. Your creditors need to report that your debts have been discharged.
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    What Are The Normal Fees For A Bankruptcy Attorney

    You can file pro se, but the success rate is not good. In the Los Angeles area, for example, nearly twice the number of pro se Chapter 7 cases were dismissed as attorney-represented cases in 2014 and attorneys filed nearly four times as many cases as self-represented parties. With an attorney, the success rate of a chapter 7 bankruptcy case is over 95%.

    For Chapter 13, pro se filers do even worse than their Chapter 7 counterparts. The attorney-represented success rate for Chapter 13 in the Los Angeles area is over 55%, while the pro se success rate is only 0.04%, or 1 in 2,500. Less than half of all chapters filed pro se in 2014 received a discharge, while over 82 percent of attorney-represented cases were discharged.

    Most people file pro se because either they think they dont need an attorney or they think cant afford an attorney. You probably know that attorney fees make up the majority of the cost of filing for bankruptcy. Youre already short on cash and you dont have much to spare for a lawyer. Youre looking for the best rate you can find. So, what can you expect to pay?

    What You Need For Preapproval

    With or without a history of bankruptcy, youll need good enough credit to get preapproved. Heres what that means for each loan type.

    • Conventional Fannie/Freddie mortgage: 620
    • FHA loan: 500 with at least 10% down 580 with at least 3.5% down
    • VA or USDA loan: No minimum, but you are more likely to get approved with a score of at least 640

    Gather these documents before you apply so lenders will be able to quickly make a preapproval decision on your loan.

    • Your Social Security card

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    What Are The Different Kinds Of Bankruptcy

    This website focuses on the two most common types of bankruptcy filed by individuals: Chapter 7 and Chapter 13. But hereâs a quick summary of the six types of bankruptcy most commonly filed under the bankruptcy code they get their names from the chapters where they appear in the code.

    Chapter 7 Bankruptcy

    Chapter 7 lets individuals wipe out most kinds of debt in just a few months. You get to keep certain kinds of propertyâfor example, at least some of the equity in your home, your car, clothing, personal items, and property that is essential to your profession. This type of property is called âexemptâ property, and many Chapter 7 filers find that exemptions cover most of what they own. If you have nonexempt property, the bankruptcy trustee will sell it to repay your creditors as much as possible. To qualify for Chapter 7, you must pass the âmeans test,â showing that your income is less than the state median income for your family size. Most bankruptcies filed in the U.S. are Chapter 7 bankruptcies.

    Chapter 13 Bankruptcy

    Chapter 9 Bankruptcy

    Cities or towns may file for Chapter 9 bankruptcy if they are overwhelmed by debt. It allows municipalities to develop a plan for handling debts while holding creditors at bay.

    Chapter 11 Bankruptcy

    Chapter 15 Bankruptcy


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