Frequently Asked Questions

What are the different types of Bankruptcy?

Chapter 7 – A trustee is appointed to take over your property. Any property of value will be sold or turned into money to pay your creditors. You may be able to keep some personal items and possibly real estate depending on the law of the State where you live and applicable federal laws.
Chapter 13 – You can usually keep your property, but you must earn wages or have some other source of regular income and you must agree to pay part of your income to your creditors. The court must approve your repayment plan and your budget. A trustee is appointed and will collect the payments from you, pay your creditors, and make sure you live up to the terms of your repayment plan.
Chapter 12 – Like chapter 13, but it is only for family farmers and family fishermen.
Chapter 11 – This is used mostly by businesses. In chapter 11, you may continue to operate your business, but your creditors and the court must approve a plan to repay your debts. There is no trustee unless the judge decides that one is necessary; if a trustee is appointed, the trustee takes control of your business and property.

If I file Bankruptcy, will the court take all of my property?

The bankruptcy court is probably not going to take ANY of your property. If your car/house is not paid for, it probably has no equity, and it therefore has no value to the bankruptcy court.

If you've lived in Virginia for two years, here's what you're allowed to keep:

$5000 worth of furniture (per person)
$1000 worth of clothing (per person)
$5000 worth of family heirlooms (per person)
Paid for car worth up to $6000 (per person)
Your wedding/engagement ring (no dollar limit)
Your 401(k) or other retirement fund (up to $1 million!)
Your 529/prepaid tuition fund for your kids/grandchildren
Your child support (it technically belongs to the child)
Cash/bank accounts/tax refunds/anything else you want, up to $5000 per person (+$500 per child)

What should I bring to my first appointment?

You don't need to bring anything but it is helpful if you bring:

Your Transunion and Experien credit reports from www.annualcreditreport.com. They are FREE if you haven’t pulled them within the last year. (Your credit score is NOT free—I don’t need it.)
A copy of the most recent federal and state tax returns you filed. You can call the IRS at 1-800-829-1040 and ask that they mail you a “tax transcript” for the most recent return you filed.
Copies of ALL your and your spouse’s pay-stubs for the past 6 months. Keep saving your pay-stubs and give me up-to-date ones every time we meet.

How long does it take to file Bankruptcy?

A typical Chapter 7 case takes three months from filing until discharge. Chapter 13 cases involve monthly payments for a period of three to five years. Once you’ve provided us with all the necessary financial information, we usually have your case filed within two weeks, or even faster in emergency situations.

How much will filing for Bankruptcy cost?

The Court’s filing fee is $299 for a Chapter 7 case and $274 for a Chapter 13. We will file a Homestead Deed to protect many of your assets– that filing fee is $21. You are required to get Credit Counseling before the case is filed. That is available online for about $30 and by telephone for $50. You will also be required to take an online financial management class after the case is filed. You can take that class for only $11 at www.beadviser.com.

My fee varies depending on the complexity of your case and your ability to pay. It is my goal to make sure that everyone who comes to my office seeking assistance can afford to get it.

Will I have to go to court?

Most people who file Bankruptcy never set foot in a courthouse and never see a judge. You will have to attend a brief hearing (known as a “Meeting of Creditors”) that is conducted by a Bankruptcy trustee. Creditors are allowed to come ask you questions at this meeting but they almost never do. You must have a photo ID and proof of your Social Security Number at this hearing. You will be asked a very few questions about what property you own. It seldom takes longer than five minutes.

Will my creditors be able to block my Bankruptcy?

Your creditors are probably not going to challenge your bankruptcy. They can only challenge it if you've lied in writing on a credit application, gotten them to lend you money using fraudulent means, or charged several thousands of dollars (or taken cash advances or done balance transfers) on a credit card less than a year before filing bankruptcy. MOST PEOPLE HAVE NOT DONE THIS, so it is VERY rare for a creditor to object in a bankruptcy case.