Chapter 7 FAQs

The most common type of filing, and the quickest and least expensive, is the Chapter 7. When filing Chapter 7, most of your unsecured debts are discharged--meaning they are gone and cannot be collected. When filing for bankruptcy you usually cannot be discharged from student loans, child or spousal support obligations, taxes or any debt to any government entity.

Virginia exemption law (the Homestead Exemption) allows you to keep your furniture, clothes, and car with limitations on value. The "homestead exemption" also gives you the right to protect certain assets: among these assets are bank accounts, equity in your car or truck, and limited equity in a house. There are certain limitations on the value of these assets. I will explain in detail the exemption process in our office meeting. Protecting our client's assets to the greatest extent possible is very important to us, and we will cover that aspect in detail with you.

A. You must include ALL creditors however small, including personal debts to friends or relatives, so that every creditor is treated equally, even if they receive no distribution. You must also list ALL assets, including personal items, household goods, and all financial accounts. In most cases these items are entirely exempt from the trustee's ability to seize assets, and you will keep them.

A. After filing, the required Trustee's hearing is usually about 30 days after filing. After that, there is a 60 day period for creditors to inquire and object to the case, if reason exists. At the end of that time, the Court enters the final Order of Discharge which concludes the case.

A. We charge reasonable flat fees in most cases, which are generally in the $1500 range, plus the filing fee which has now gone up to $299 per case on Chapter 7. If a Homestead Deed is necessary, the additional filing fee is $21. Therefore, most cases will run under $2000 for everything.

A. Most consumer debts such as credit cards, unsecured loans, medical bills, past due rent, utility bills, etc. are generally dischargeable in bankruptcy...Debts such as all types of taxes or other debts to the government, student loans, child support, and alimony are almost never dischargeable, except in very unique and limited circumstances. Secured debts, such as auto payments, can also be discharged but the creditor is entitled to recover their collateral. If you wish to keep the car or other secured items and continue paying for it, we will assist you in making the most appropriate arrangements.

A. Currently, there are no media outlets or newspapers that publish lists of individual bankruptcy filings. Some business cases are routinely reported in local newspapers. If you have a concern in this regard, we will discuss it in detail. We have represented cases over the years that generated media attention and can provide guidance in this area in the unlikely event that it is needed.

A. Spouses are not required to file joint petitions, but often do, especially where the debts are largely joint. The cost is the same whether it's an individual case or joint filing. There are many cases where only one spouse files, especially where for various reasons only one spouse has overwhelming debt.

A. No, it doesn't have to. Most of our clients are able to re-establish reasonable credit in a relatively short time. Obtaining new credit is largely and usually based on ability to pay, amount of down payment on items such as cars, and the overall credit history, such as a long record of on-time payments prior to whatever event precipitated the bankruptcy filing.

*WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE.