Newport News Bankruptcy Attorneys

There are two primary types of consumer bankruptcy:

1. A Chapter 7 bankruptcy is a liquidation process that discharges most unsecured debts in exchange for selling certain non-exempt assets to creditors.
2. A Chapter 13 bankruptcy creates a repayment plan for paying back debt for three to five years while retaining your property.

Determining the right chapter depends on your financial situation, income, assets, and long-term goals. At Boleman Law Firm, P.C., we can explain how each option applies under Virginia law to help determine an appropriate path for your circumstances.

Almost any individual with a residence, business, or property in the U.S. can file for bankruptcy. The debtor must act in good faith and provide a full and honest disclosure of all assets, debts, income, and expenses. However, the specific eligibility criteria depends on the chapter.

Below is a brief overview of the requirements for Chapter 7 and Chapter 13:

Chapter 7 Bankruptcy

You may qualify for a Chapter 7 bankruptcy if your gross income is less than the median income for comparable households in the state. If this criteria is not met, you may still qualify through the federal means test, which allows for the deduction of certain expenses. This determines if you have enough disposable income to repay your debts.

Chapter 13 Bankruptcy

To be eligible for a Chapter 13 bankruptcy, you must have a steady source of income that allows you to make regular payments under a court-approved repayment plan. Your total unsecured and secured debts must fall below federal limits, which are periodically updated.

Federal law sets mandatory waiting periods for individuals filing for bankruptcy with a prior discharge:

• To file under Chapter 7, debtors must wait eight years from the date of a previous Chapter 7 discharge or four years after a prior Chapter 13 discharge.
• To file under Chapter 13, debtors must wait two years from the date of a previous Chapter 13 discharge or four years after a Chapter 7 discharge.

Keep in mind that some exceptions may apply in certain circumstances, making it crucial to have a knowledgeable attorney on your side. Our firm can help you calculate federal waiting periods to determine your potential eligibility for future filings.

Yes. In most cases, an automatic stay will take effect after filing for bankruptcy. This stops most debt-collection activities against the debtor, including wage garnishments, repossessions, foreclosures, and creditor lawsuits.

To file for bankruptcy, you must take the following steps:

1. Consult a bankruptcy attorney. Seeking legal counsel is critical to navigate the legal process efficiently and in compliance with state and federal regulations.
2. Assess your finances. Your attorney can evaluate your debts, income, and expenses to determine if bankruptcy is an appropriate path forward.
3. Credit counseling. Next, you must complete a government-approved credit counseling course. Your lawyer can help you select an approved provider.
4. Collect documents. Gather tax returns, pay stubs, bank statements, and debt records to include with your petition.
5. Choose a chapter. From eliminating debts quickly (Chapter 7) to repaying debt over time (Chapter 13), your attorney can advise you on a suitable approach.
6. File your petition. Submit the required forms and documentation to the bankruptcy court.
7. Attend the 341 meeting. Meet with the bankruptcy trustee to answer financial questions. Your lawyer can represent you during this process.
8. Complete debtor education. You must complete a government-approved course before your debts are discharged.
9. Receive your bankruptcy discharge. After all requirements are met, eligible debts are wiped out to give you a fresh start.

Under federal law, all individual debtors must obtain credit counseling from an approved provider within 180 days before filing for bankruptcy relief. A certificate of completion must be filed with the petition. Failure to do so may result in the dismissal of the case.