What to Expect in Your Virginia Bankruptcy Case
Filing for bankruptcy can be a scary step. You probably have a lot of questions and fears. However, you need to be aware that some of them may be based on misinformation. When done correctly, the short-term effects of bankruptcy are minimized and you are able to reassemble the pieces of your life that were shattered by debt.
I am Nathan D. Baney, an attorney with focused experience in consumer and small business bankruptcy law. Call me at 571-482-7358 for a free consultation and straight answers. I serve clients in Alexandria, Fairfax, across northern Virginia, and Washington, D.C.
THE BANKRUPTCY PROCESS
I personally sit down with you to examine your debts, assets, income and expenses. I will need to document the value of your home and personal property, any pending court actions, any large payments to creditors or recent gifts. After I feed the numbers through the income means test formula, I will be able to tell you if you qualify for Chapter 7 bankruptcy, which cancels certain debts, or Chapter 13 bankruptcy, in which you to pay back a portion of your debts over time. Learn more: What to Bring to Your Bankruptcy Consultation.
Filing for Bankruptcy
To file for bankruptcy, you must take a credit counseling course from an approved agency to confirm that you understand what bankruptcy is and have explored debt relief alternatives. I can help you set this up — the class takes only a few hours, and can be completed online or over the phone.
If we have concluded that a bankruptcy is the best option, I can file a bankruptcy petition in U.S. Bankruptcy Court within a few days. If your home is in foreclosure, I can file an emergency petition for an automatic stay against foreclosure, repossession and all collection efforts. From the day you file, creditors must stop calling and threatening legal action. (If they persist, you will be able to direct them to me.)
Bankruptcy Court
You will have to appear at a 341 hearing, also known as a Meeting of Creditors. (In reality, it is very rare that creditors will show up to object.) I will accompany you to the hearing, which takes less than ten minutes. The trustee assigned to your case checks your ID, and will tell you of any objections, or ask you about questionable exemptions. The trustee then takes your case under advisement.
Confirmation and Discharge
- In most Chapter 7 cases, debts are discharged within 90 to 120 days of the filing date. There is a post-filing budgeting class requirement (similar to the pre-filing course) before your discharge is official.
- In a Chapter 13 bankruptcy, you will make fixed monthly payments to the trustee for 36 or 60 months. The first payment will be due 30 days after filing. There will be a confirmation hearing about six weeks after the creditors meeting to confirm the plan and make any adjustments. If you complete the plan by making all payments, your remaining debts are forgiven. The trustee will conduct a post-filing course on budgeting on the morning of the 341 hearing.
Life After Bankruptcy
A bankruptcy technically stays on your credit report for ten years. However, this will not burden you for the next ten years. Your credit will be as good — and probably better — within a few years of filing. Learn more: Your Credit Score and Other Bankruptcy Myths.
I offer a free consultation at my office in Alexandria, or I can travel to your home. Contact me today to discuss your specific situation with a knowledgeable lawyer.
Under the current Bankruptcy Code, I am classified as a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.
