What Are The Bankruptcy "Chapters"?

   You have two main choices under the bankruptcy law--Chapter 13 and Chapter 7.

   Chapter 13 is a debt adjustment. The court works out a payment plan you can afford.  Chapter 13 may be required for higher income people.  The new bankruptcy law was promoted as an effort to force more people to file Chapter 13.  For the first two years it didn't do that--but the government has now reduced what it allows people like you to spend on food, clothing, and transportation, in a new effort to force more people into Chapter 13. 

   Under Chapter 7, most unsecured debts are discharged--they're gone. (You usually cannot be discharged from taxes, student loans, or child support.  You also cannot be discharged from your timeshare fees or credit cards you agreed to pay as part of your divorce.)

    Our law firm thinks that Chapter 7 is better for most people.  It's over quicker and gets you back to good credit much sooner.  We try everything we can to qualify people for Chapter 7 if they need Chapter 7.

     Chapter 13 is good to stop the foreclosure on your house and give you time to catch up.  For more about foreclosures, link to www.stopforeclosurevirginia.net.  It can also be used creatively to fix a variety of problems. (Some of which I can't put in writing).

     (You hear in the news about Chapter 11. Chapter 11 is for business--usually big business. Chapter 11 is a plan to pay some debts, wipe out others, and keep the business going.  People who owe a million dollars on their house may be required to file Chapter 11--we're starting to see some of that now..)

How Much Property Can I Keep?

   Most people keep everything. Virginia law allows you to keep your furniture, clothes, and car up to certain limits of value. The law also gives you the right to protect other assets: bank accounts, expensive cars-- again up to certain limits. 

   Single people who still have some equity often require a Chapter 13 to keep their house--Virginia is tied for worst of the fifty states in the protection for single people in bankruptcy.  Married people can more often keep their house with equity in Chapter 7.  (If falling real estate values have wiped out the equity in your house, then you don't need to worry about that.)

    Especially under the new bankruptcy law, it's smart to see a lawyer right away if you are in financial difficulties and own real estate in Virginia.  We can usually put together a plan that works if you come to see us early enough.

How Long Will My Credit Be Bad?

   There is no truth to the urban legend that you have to go for seven years with bad credit.  Bankruptcy will be on your credit report for 10 years, but even so you can have good credit in just three years.

   We make sure you know to do the things you need to do to get good credit in three years.   And we follow up with the credit bureaus after your bankruptcy is over to make sure your credit reports are right.

     If necessary, we sue the creditor or credit bureaus to get your credit report right after bankruptcy.  After-bankruptcy credit report law is a new area of the law.  We're one of the pioneers.

Is Bankruptcy My Only Option?

     Sometimes doing nothing will work.  For elderly people with nothing but social security, simply telling creditors to call your lawyer may be all you need to do.

     (If I can work out a plan to fix your debt situation without a lawyer, there's no charge.  But I do make you listen to my favorite lawyer joke.)

    If you want to try to work out lower payments with your creditors, I used to recommend Consumer Crediting Counseling Service at 1-800-747-4222.   They used to have offices around Northern Virginia where you could meet somebody in person and go over your choices. 

     Now, they have been taken over by Money Management International at the same phone number, but now only over the phone and on the internet.  The credit card companies really sold Congress on how these counseling services were better than bankruptcy.  After the new law passed, the best ones closed down.  I guess I shouldn't be surprised at that, but I am.

How Can I Pay The Legal Fee?

   We offer payment plans. Most clients take four months. 

     How much will it cost?  That varies with the facts of your case.  If my job gets harder, your price does go up.  Under the new law, Chapter 7, with filing fees, costs and legal fees, you can expect to pay a little over $2,000.00.  If your situation is complicated, it can cost more than $2,500.00.

When Should We Talk?

   If your finances are interfering with your work, your family, your health, your life-- call today.

     Bankruptcy should be a last resort, but under the new law, it cannot be a last minute, last resort.  Filing bankruptcy under the new law requires a good bit of paperwork and advance planning.  And more and more it requires a strategy.

     Because of the twists and turns under the new law, many of the things you do to try to keep paying your debts can really hurt your eligibility to file bankruptcy later.  By the time you decide you have no option left but bankruptcy, you may have locked yourself out.

See us for a free appointment!

   We know it's not easy to discuss your financial situation with a stranger.  Bankruptcy is all we do--and you'll like our friendly service with a smile. 

CALL TODAY!

• Alexandria - 703-519-1215
•       211 N Union Street #100
• Manassas - 703.335.7793
•      7900 Sudley Rd #409
• Sterling - 703.421.7111
•      46950 Community Plaza #216
• Woodbridge - 703-583-0330
•       Satellite office

   Robert Weed and Klinette Kindred are members of the National Association of Consumer Bankruptcy Attorneys (NACBA) and the National Association of Consumer Advocates.

   Mr. Weed is also member of the American Bankruptcy Institute.  He was named NACBA bankruptcy lawyer of the month for April 2006.

   Both Mr. Weed and Ms.Kindred have successfully handled thousands of personal bankruptcy cases.

    Our senior paralegal staff have also been trained in the new bankruptcy law at national programs offered by the National Association of Consumer Bankruptcy Attorneys.