Best Bankruptcy Lawyers in Virginia

About Bankruptcy Law in Virginia, United States

Bankruptcy law in Virginia is based on federal statutes, primarily the United States Bankruptcy Code, but it also incorporates specific state rules and exemptions. Bankruptcy is a legal process that allows individuals or businesses who are unable to pay their debts to either eliminate or restructure what they owe through the courts. In Virginia, bankruptcy cases are handled in federal bankruptcy courts, but understanding both federal and state law is essential for anyone considering filing. Virginians typically use Chapter 7 or Chapter 13 bankruptcy, each offering distinct approaches depending on a person's financial situation, assets, and goals.

Why You May Need a Lawyer

Filing for bankruptcy can be complex, and mistakes can result in loss of property or dismissal of your case. People often seek legal help with bankruptcy cases for several reasons:

• If you are facing foreclosure or repossession of assets
• You have significant unsecured debt, such as credit cards or medical bills
• You are being sued or harassed by debt collectors
• You need help understanding the difference between Chapter 7 and Chapter 13 bankruptcy
• You have non-exempt property that could be at risk
• You are concerned about protecting co-signers or jointly held assets
• You have complex financial affairs or business interests
• You simply want to ensure your paperwork is accurate and complete

A lawyer can evaluate your circumstances, help you understand your options, prepare your filing, represent you in court, and defend your rights throughout the process.

Local Laws Overview

While federal laws guide bankruptcy proceedings in Virginia, several local aspects and state-specific laws can impact your case:

• Virginia has its own list of bankruptcy exemptions, which determine what property you can protect from liquidation. Some notable exemptions include a homestead exemption, specific personal property limits, and certain pension and retirement benefits.
• Residents must have lived in Virginia for at least two years to use the state exemptions; otherwise, you may have to use the exemptions from your previous state of residence.
• The Means Test is used to determine eligibility for Chapter 7 bankruptcy. Virginia's median income figures apply to these calculations.
• Filing fees and processes may vary slightly by district within the state, and local court procedures must be followed.
• If you are married, Virginia allows for both single and joint filings, but property ownership laws in Virginia can affect what assets are considered part of the bankruptcy estate.

Frequently Asked Questions

What types of bankruptcy can individuals file in Virginia?

Most individuals file under Chapter 7 or Chapter 13. Chapter 7 involves liquidation of non-exempt assets to pay creditors, while Chapter 13 focuses on a repayment plan over three to five years.

Will I lose my home or car if I file for bankruptcy in Virginia?

You may be able to keep your home and car depending on their value and the exemptions you qualify for. An attorney can help you understand exactly what you can protect.

What is the Means Test?

The Means Test determines if you qualify for Chapter 7. It compares your average income over the past six months to the median income for a household of your size in Virginia.

How long does bankruptcy stay on my credit report?

A Chapter 7 bankruptcy can remain on your credit report for up to 10 years, while Chapter 13 stays for up to 7 years.

Does bankruptcy eliminate all debts?

No. Certain debts like child support, alimony, most student loans, and some taxes are not typically dischargeable in bankruptcy.

Can I file for bankruptcy more than once?

Yes, but there are waiting periods between cases. The length of the waiting period depends on the type of bankruptcy previously filed and the type you wish to file now.

Will all my creditors stop contacting me after I file?

Once you file for bankruptcy, an automatic stay goes into effect that prohibits most creditors from continuing collection actions against you.

How much does it cost to file for bankruptcy in Virginia?

Filing fees are set by the federal courts, and typically range from a few hundred dollars. Attorney fees are additional and depend on complexity and the chapter under which you file.

Can bankruptcy help with foreclosure?

Filing for bankruptcy may temporarily halt foreclosure proceedings due to the automatic stay. Chapter 13 may allow you to catch up on missed mortgage payments over time.

Should I file for bankruptcy if I am being sued by a creditor?

Bankruptcy can stop pending lawsuits and discharge certain debts. However, not all lawsuits can be stopped or included, so it is best to consult a lawyer for advice on your specific case.

Additional Resources

If you are seeking more information or assistance, consider these resources:

• United States Bankruptcy Court - Eastern and Western Districts of Virginia: Information on local court proceedings and filing requirements
• Virginia State Bar Association: Lawyer referral services and consumer resources
• Legal Aid Societies: Free or low-cost legal help for those who qualify
• Consumer Financial Protection Bureau: Educational resources about bankruptcy and debt relief options
• Credit Counseling Agencies: Approved organizations that offer required pre-bankruptcy counseling and debtor education

Next Steps

If you are considering bankruptcy in Virginia, start by gathering information about your debts, assets, income, and monthly expenses. Consult a qualified bankruptcy attorney to discuss your options and determine which chapter, if any, is right for you. Be prepared to complete credit counseling and gather documentation for your case. Taking these steps with professional guidance can help ensure the best possible outcome and reduce the stress of the process.