Bankruptcy FAQs
Each day at Ferris Law, we work with people who are going through some of the most challenging moments of their lives. Credit card debt, past-due mortgage payments, medical expenses and numerous other types of debts can add up to an unbearable burden.
We understand the struggles facing hardworking people and families in the Richmond Metropolitan area. We want to provide you with the information and legal resources that can help you manage and eliminate your debt as quickly and cost-effectively as possible.
To help you get started, we’ve listed some of the most common questions we hear pertaining to bankruptcy followed by general answers. To gather information tailored to your specific needs, we encourage you to review our pages explaining various aspects of bankruptcy and to call us at (804) 767-1800 to schedule a consultation.
Bankruptcy is a process under federal law that allows debtors who owe more money than they can pay to either eliminate their debt or work out a payment plan to pay a portion (or all) of their debt over time.
Yes, certain notices and documents are required to protect you and enable you to leave a lease without any additional financial burden.
The Bankruptcy Law exempts and protects many IRA, 401(k), 403(b), Pension Plans and other ERISA certified retirement accounts.
As long as you qualify for a Chapter 7, you may file again after eight years.
Bankruptcy cannot cure every financial problem.
For example, it usually will not eliminate debts owed to “secured” creditors (i.e., creditors who hold an interest in collateral, such as a mortgage or a car note), though it may allow for a restructuring of that debt. It also will not discharge debts that fall into the following categories: some debts incurred within 180 days prior to filing bankruptcy; child support; alimony; court fines and penalties; some taxes, especially those accrued over the past three years; debts not listed on your bankruptcy petition; loans obtained through fraud; student loans owed to a school or government body which became due less than seven years before the bankruptcy was filed, unless payment would be an undue hardship; debts that arise after bankruptcy has been filed; or protect co-signers on your debts (when the primary debtor on a co-signed loan discharges the loan in bankruptcy, the co-signers may still have to repay all or part of the loan).
Yes. An automatic stay will take effect when you file your case. It will stop creditor harassment.
Bankruptcy may be reported for up to ten years, however, your credit score can increase over time if you manage your credit better after bankruptcy. Bankruptcy can give you the fresh start you need.
Secured debt is debt that allows a creditor to make a claim on an asset (i.e. home, real property or car). Unsecured debt is held by creditors that have no claim to your assets (i.e. credit cards).
Your lawyer can amend your case to include any additional debts you may find after the case is filed.
You need to discuss this carefully with your attorney. A spouse who does not file will be responsible for joint debts.
Yes. You are responsible for any debt that you signed for. You are jointly liable for such debts up to 100%.
No. There are certain debts that are non-dischargeable, such as, student loans, criminal fines, penalties and restitution, certain taxes and child support that you owe. Additionally for secured debts, you do not get to keep the property and continue to pay for it, although, you can surrender the property and pay nothing.
Most personal property is exempt.
No. You are required by law to list all of your assets and all of your debts.
Generally a Chapter 7 bankruptcy discharge is received within a few months after you file. In Chapter 13, your discharge will be sent to you once you have completed the payments under the Chapter 13 plan.
What Do Bankruptcy Services Cost in Virginia?
Chapter 7 Bankruptcy – Individual
$1,699.00 (Inclusive of Attorney Fees, Filing Fees, Credit Counseling and Credit Report) Chapter 7 is often the most efficient and effective method for discharging your unsecured debts. (If you own an LLC, fees could be higher due to additional work).
Chapter 7 Bankruptcy – Joint
$1,799.00 (Inclusive of Attorney Fees, Filing Fees, Credit Counseling and Credit Report) Chapter 7 is often the most efficient and effective method for discharging your unsecured debts. (If you own an LLC, fees could be higher due to additional work).
Chapter 13 Bankruptcy
$750 down. If you do not qualify for a Chapter 7, a Chapter 13 can provide a structured repayment schedule that helps you pay off your debt over 3-5 years.