7110 Forest Avenue
Suite 204
Richmond, VA 23226
CALL FOR APPOINTMENT
804 288-4328
fax 804 288-4329
brucewwhite@cavtel.net
Suite 204
Richmond, VA 23226
CALL FOR APPOINTMENT
804 288-4328
fax 804 288-4329
brucewwhite@cavtel.net
Does the new bankruptcy law prevent me from filing bankruptcy?
The answer is NO. The new bankruptcy law does not prevent you from filing, however, it does require more work on both the part of the debtor and the attorney. All Debtors must complete an approved Debt Management Course, which can be scheduled by my office. You may complete this course in the privacy of your own home via telephone or the internet, but you must have completed the first half of the course by the time you file your bankruptcy petition. In addition, your attorney must conduct a "means test" to determine what type of bankruptcy you may qualify for. The purpose of the means test is to figure out whether you have enough disposable income, after subtracting certain allowed expenses and required debt payments, to make payments under a Chapter 13 plan. The new laws make it more complicated, but not impossible, to file bankruptcy. You will need to be prepared to provide detailed income and expense information to your attorney so that he may be able to properly evaluate your particular situation.
How can filing bankruptcy help?
Many people mistakenly believe that by filing bankruptcy, they will lose their home, car or personal belongings. In reality, filing bankruptcy can help save your house, car, and all other personal belongings, no matter how much money you owe. People are often faced with unexpected medical bills, the loss of a job, high costs of repairs, and other unanticipated expenses which most of us have not saved for. These unexpected bills may cause you to get behind in your house payments, car payments and credit card payments. Soon, you may face a judgment against you and garnishment of your wages, a repossession of your automobile or a foreclosure on your home. By filing bankruptcy, you can prevent your creditors from taking your property, and allow yourself the opportunity for a fresh start, free from debt, or to consolidate your debts into a more affordable monthly payment plan.
Doesn't bankruptcy hurt my credit?
The filing of a bankruptcy petition will certainly lower your credit rating initially. What most people don't realize, however, is that by the time they are considering filing bankruptcy, most likely, their credit rating is already in trouble. Once a bankruptcy appears on your credit report, you can begin to rebuild a "clean record" and show your future creditors that you can now pay your debts in a timely and responsible manner. It is not unusual for debtors to be approved for a new home mortgage 2 years after receiving their bankruptcy discharge.
Chapter 7: Liquidation or "straight" bankruptcy
Chapter 7 is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. Under Chapter 7, a Trustee is assigned to your case to decide if there are any assets which can be liquidated to pay your creditors. You are allowed certain exemptions under state law to protect some or all of your property. The Trustee may only liquidate any unprotected property and use the proceeds to pay your creditors pursuant to the Bankruptcy Code. In most cases, you are able to keep all of your property.
The purpose of filing a Chapter 7 bankruptcy is to obtain a discharge of your "dischargeable" debts and give you a "fresh start." There are some debts which are not discharged. Some of those debts include alimony and child support, student loans, debts fraudulently incurred, debts for willful and malicious injury to a person or property, and debts arising from a drunk driving judgment. Recent and unfiled taxes are also non-dischargeable.
Chapter 13: Debt consolidation
Chapter 13 is designed for individuals with a regular source of income. Chapter 13 is often preferred over Chapter 7, as it allows a Debtor to keep their house or car, which they may otherwise lose in a Chapter 7. A Debtor may also file a Chapter 13 if they do not qualify to file Chapter 7. With a Chapter 13, you must file a Plan with the Court which proposes to pay your creditors all or part of the money you owe them. The amount you are required to pay is determined by the "means test" results. Chapter 13 allows you to keep all of your property as long as you continue to make your monthly payments set forth in your Chapter 13 Plan. It usually takes 3-5 years to complete a Chapter 13 Plan.
Do I qualify to file bankruptcy?
Anyone can file bankruptcy no matter how much money they owe. Your attorney can advise you as to the type of bankruptcy you qualify for and which is best for you. You are prohibited from filing a Chapter 7 bankruptcy if you have filed a previous Chapter 7 and received a discharge within the last 8 years.
What does it cost?
In all Chapter 7 and Chapter 13 cases, there is a one-time Court filing fee of $299.00 for Chapter 7 and $274.00 for Chapter 13. Costs for credit reports, credit counseling, etc. are additional. Attorneys fees are charged on an individual basis and depend on the type of bankruptcy and specialized services you will require. In my practice, arrangements can be made for the payment of these fees and costs.
What do I need for my first appointment?
The above information is an advertisement for legal services and is provided as a guide and not a statement of law. The Bankruptcy Code is complex and you should consult an attorney to determine how the Bankruptcy Code will affect you.
The answer is NO. The new bankruptcy law does not prevent you from filing, however, it does require more work on both the part of the debtor and the attorney. All Debtors must complete an approved Debt Management Course, which can be scheduled by my office. You may complete this course in the privacy of your own home via telephone or the internet, but you must have completed the first half of the course by the time you file your bankruptcy petition. In addition, your attorney must conduct a "means test" to determine what type of bankruptcy you may qualify for. The purpose of the means test is to figure out whether you have enough disposable income, after subtracting certain allowed expenses and required debt payments, to make payments under a Chapter 13 plan. The new laws make it more complicated, but not impossible, to file bankruptcy. You will need to be prepared to provide detailed income and expense information to your attorney so that he may be able to properly evaluate your particular situation.
How can filing bankruptcy help?
Many people mistakenly believe that by filing bankruptcy, they will lose their home, car or personal belongings. In reality, filing bankruptcy can help save your house, car, and all other personal belongings, no matter how much money you owe. People are often faced with unexpected medical bills, the loss of a job, high costs of repairs, and other unanticipated expenses which most of us have not saved for. These unexpected bills may cause you to get behind in your house payments, car payments and credit card payments. Soon, you may face a judgment against you and garnishment of your wages, a repossession of your automobile or a foreclosure on your home. By filing bankruptcy, you can prevent your creditors from taking your property, and allow yourself the opportunity for a fresh start, free from debt, or to consolidate your debts into a more affordable monthly payment plan.
Doesn't bankruptcy hurt my credit?
The filing of a bankruptcy petition will certainly lower your credit rating initially. What most people don't realize, however, is that by the time they are considering filing bankruptcy, most likely, their credit rating is already in trouble. Once a bankruptcy appears on your credit report, you can begin to rebuild a "clean record" and show your future creditors that you can now pay your debts in a timely and responsible manner. It is not unusual for debtors to be approved for a new home mortgage 2 years after receiving their bankruptcy discharge.
Chapter 7: Liquidation or "straight" bankruptcy
Chapter 7 is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. Under Chapter 7, a Trustee is assigned to your case to decide if there are any assets which can be liquidated to pay your creditors. You are allowed certain exemptions under state law to protect some or all of your property. The Trustee may only liquidate any unprotected property and use the proceeds to pay your creditors pursuant to the Bankruptcy Code. In most cases, you are able to keep all of your property.
The purpose of filing a Chapter 7 bankruptcy is to obtain a discharge of your "dischargeable" debts and give you a "fresh start." There are some debts which are not discharged. Some of those debts include alimony and child support, student loans, debts fraudulently incurred, debts for willful and malicious injury to a person or property, and debts arising from a drunk driving judgment. Recent and unfiled taxes are also non-dischargeable.
Chapter 13: Debt consolidation
Chapter 13 is designed for individuals with a regular source of income. Chapter 13 is often preferred over Chapter 7, as it allows a Debtor to keep their house or car, which they may otherwise lose in a Chapter 7. A Debtor may also file a Chapter 13 if they do not qualify to file Chapter 7. With a Chapter 13, you must file a Plan with the Court which proposes to pay your creditors all or part of the money you owe them. The amount you are required to pay is determined by the "means test" results. Chapter 13 allows you to keep all of your property as long as you continue to make your monthly payments set forth in your Chapter 13 Plan. It usually takes 3-5 years to complete a Chapter 13 Plan.
Do I qualify to file bankruptcy?
Anyone can file bankruptcy no matter how much money they owe. Your attorney can advise you as to the type of bankruptcy you qualify for and which is best for you. You are prohibited from filing a Chapter 7 bankruptcy if you have filed a previous Chapter 7 and received a discharge within the last 8 years.
What does it cost?
In all Chapter 7 and Chapter 13 cases, there is a one-time Court filing fee of $299.00 for Chapter 7 and $274.00 for Chapter 13. Costs for credit reports, credit counseling, etc. are additional. Attorneys fees are charged on an individual basis and depend on the type of bankruptcy and specialized services you will require. In my practice, arrangements can be made for the payment of these fees and costs.
What do I need for my first appointment?
- How much income you had for the past 6 months (bring pay stubs or make a chart)
- Approximate balance owed on mortgage or car loans, including past due amounts
- Approximate amount owed for ALL other debt, including credit cards, medical bills, taxes, personal loans, past-due child support, etc.
- Photo ID and Social Security card
- $75.00 consultation fee
The above information is an advertisement for legal services and is provided as a guide and not a statement of law. The Bankruptcy Code is complex and you should consult an attorney to determine how the Bankruptcy Code will affect you.
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