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.
What is Bankruptcy?
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.
Will Bankruptcy Stop All the Harassing Phone Calls and Mail from Bill Collectors?
Yes. An automatic stay will take effect when you file your case. It will stop creditor harassment.
Will Bankruptcy Stop a Wage Garnishment from a Lawsuit Over an Unsecured Debt?
Yes. The automatic stay is a Federal Court Order that goes into effect upon the filing of your bankruptcy petition and will stop wage garnishment.
How Long Will Bankruptcy Remain on my Credit Report?
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.
What Does Secured Debt and Unsecured Debt Mean?
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).
What Happens if I File and Discover Another Debt After Filing?
Your lawyer can amend your case to include any additional debts you may find after the case is filed.
What Happens When One Spouse Files Without the Other Spouse?
You need to discuss this carefully with your attorney. A spouse who does not file will be responsible for joint debts.
Can I Be Held Responsible for a Debt That I Co-Signed?
Yes. You are responsible for any debt that you signed for. You are jointly liable for such debts up to 100%.
Can All Debts Be Discharged?
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.
Am I Going to Lose My Personal Property if I File for Bankruptcy?
Most personal property is exempt.
Can I Pick Which Assets and Debts to Put in the Bankruptcy?
No. You are required by law to list all of your assets and all of your debts.
When Will I Get My Discharge?
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.