If you’re considering filing bankruptcy in Chesapeake, VA, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Filing for bankruptcy in Chesapeake, Virginia, or any other location in the United States, is a legal process designed to help individuals and businesses overwhelmed by debt find relief and a fresh financial start. However, not everyone is qualified to file for bankruptcy, and eligibility depends on several factors, including your financial situation, income, and the type of bankruptcy you intend to pursue.

In Chesapeake, like the rest of the United States, individuals typically file for bankruptcy under two main chapters of the Bankruptcy Code: Chapter 7 and Chapter 13. Each chapter has its own set of eligibility criteria and serves different purposes. Let’s explore who is qualified to file for bankruptcy under each of these chapters.

Chapter 7 Bankruptcy:

Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” is designed for individuals who cannot afford to repay their debts. It allows eligible debtors to have their unsecured debts, such as credit card debt and medical bills, discharged or wiped out, essentially giving them a clean slate.

To qualify for Chapter 7 bankruptcy in Chesapeake, you must meet certain criteria:

1. Means Test: The most critical factor in Chapter 7 eligibility is the means test. This test compares your income and expenses to determine whether you have enough disposable income to repay your debts. If your income is below the median income for a household of your size in Virginia, you are generally eligible to file for Chapter 7. However, if your income exceeds the median, you may still qualify if you can demonstrate that you have insufficient disposable income after deducting necessary expenses.
2. Credit Counseling: You must complete a credit counseling course from an approved agency within 180 days before filing for Chapter 7 bankruptcy.
3. Prior Discharge: If you’ve received a Chapter 7 discharge within the past eight years or a Chapter 13 discharge within the past six years, you may be ineligible for another Chapter 7 discharge.
4. Fraud and Abuse: If you’ve committed fraud, attempted to hide assets, or otherwise abused the bankruptcy system in the past, you may not qualify for Chapter 7.

Chapter 13 Bankruptcy:

Chapter 13 bankruptcy, often referred to as “reorganization bankruptcy,” is an option for individuals with a regular income who want to repay their debts over a structured repayment plan, typically spanning three to five years.

To qualify for Chapter 13 bankruptcy in Chesapeake, you must meet the following requirements:

1. Regular Income: You must have a steady source of income, whether from employment, self-employment, or another reliable source, to fund the proposed repayment plan.
2. Debt Limits: Your secured debts (e.g., mortgages and car loans) are adjusted periodically.
3. Completion of Credit Counseling: Like in Chapter 7, you must complete credit counseling before filing for Chapter 13 bankruptcy.
4. Feasible Repayment Plan: You must propose a repayment plan that demonstrates your ability to repay your debts over the specified period.
5. Priority Debts: Certain priority debts, such as child support, alimony, and tax obligations, must be included and paid in full through your Chapter 13 plan.

It’s important to note that both Chapter 7 and Chapter 13 bankruptcy filings require full disclosure of your financial situation, assets, debts, and income. Failure to provide accurate and complete information can lead to your bankruptcy case being dismissed or even result in criminal charges for bankruptcy fraud.

RESOURCES:

Do You Need a Lawyer to File For Bankruptcy in Chesapeake, VA?

Filing for bankruptcy in Chesapeake, Virginia, is a complex legal process, and whether or not you need a lawyer to navigate it depends on your individual circumstances and the chapter of bankruptcy you intend to file. While it is possible to file for bankruptcy pro se (without an attorney), there are significant advantages to having legal representation.

Chapter 7 Bankruptcy:

Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is generally more straightforward than Chapter 13. However, even in Chapter 7 cases, having an attorney can be highly beneficial for the following reasons:

1. Navigating Complex Laws: Bankruptcy laws are intricate and can vary by jurisdiction. An experienced bankruptcy attorney in Chesapeake, VA, is well-versed in the local rules and regulations, ensuring that your case proceeds smoothly and that you understand your rights and responsibilities.
2. Means Test Accuracy: Eligibility for Chapter 7 bankruptcy depends on passing the means test, which assesses your income and expenses. An attorney can help you accurately complete this test to determine if you qualify for Chapter 7.
3. Asset Protection: In Chapter 7, a bankruptcy trustee may liquidate non-exempt assets to repay creditors. An attorney can help you understand Virginia’s exemptions and strategize to protect as many assets as possible while remaining within the legal limits.
4. Debt Discharge: A lawyer can assist in ensuring that your debts are properly listed, categorized, and discharged, leaving no room for errors that could lead to the denial of discharge or the reopening of your case.
5. Creditor Negotiations: If there are disputes or challenges from creditors, an attorney can advocate on your behalf and negotiate settlements or resolutions to minimize potential obstacles.

Chapter 13 Bankruptcy:

Chapter 13 bankruptcy, or “reorganization bankruptcy,” involves a repayment plan spanning three to five years. Here are reasons why hiring an attorney is particularly crucial for Chapter 13:

1. Plan Creation: Crafting a feasible repayment plan that adheres to bankruptcy laws while meeting your financial capabilities is challenging. An experienced attorney can help you create a plan that increases the likelihood of approval by the court.
2. Creditor Negotiations: In Chapter 13, creditors must agree to your repayment plan. An attorney can negotiate with creditors to secure their consent, increasing the chances of plan confirmation.
3. Legal Representation: Throughout the repayment plan, an attorney can serve as your advocate, addressing any issues or disputes that may arise with creditors, the trustee, or the court.
4. Modification Requests: Life circumstances can change during the repayment period. An attorney can help you request plan modifications if you experience financial setbacks, job loss, or other significant changes that impact your ability to make payments.

While it is possible to file for bankruptcy in Chesapeake, VA, without an attorney, the decision to hire one should be based on your specific circumstances. Bankruptcy attorneys have the knowledge, experience, and skills to navigate the complexities of bankruptcy law, increasing the likelihood of a successful outcome and a fresh financial start. Consulting with a bankruptcy attorney for an initial evaluation is an excellent way to determine the most suitable approach for your unique situation.

Cost to File Chapter 7 Bankruptcy in Chesapeake, VA

The cost to file for Chapter 7 bankruptcy in Chesapeake, Virginia, includes several fees and expenses associated with the legal process. These costs can add up, and it’s essential to be aware of them as you consider pursuing bankruptcy relief.

1. Filing Fee: The most significant upfront cost is the filing fee, which is set by the federal government and is subject to change. This fee is paid to the bankruptcy court when you submit your bankruptcy petition.
2. Credit Counseling Course: Before filing for bankruptcy, you are required to complete a credit counseling course from an approved agency. The cost of this course varies. Be sure to choose an agency approved by the U.S. Trustee Program.
3. Bankruptcy Attorney Fees: While you have the option to file for bankruptcy without an attorney (pro se), many individuals opt to hire a bankruptcy attorney to navigate the complex legal process and ensure their rights are protected. Attorney fees vary widely depending on your location and the complexity of your case. On average, Chapter 7 attorney fees can range from $1,150 to $2,900 or more. Some attorneys offer payment plans to help clients manage these costs.
4. Credit Report and Miscellaneous Costs: You may need to obtain copies of your credit reports from all three major credit bureaus to accurately list your debts in your bankruptcy petition. Each report may cost around $12 to $18. Additionally, there may be minor miscellaneous costs for things like postage, photocopies, and notary services associated with your bankruptcy filing.
5. Financial Management Course: After filing for Chapter 7 bankruptcy, you are required to complete a financial management course from an approved agency. The cost of this course is typically in the range of $28 to $60.
6. Mandatory Filing Requirements: Depending on your circumstances, you may incur additional costs if your bankruptcy case involves specific requirements, such as reaffirmation agreements (if you wish to keep certain secured debts) or other court-ordered tasks.
7. Trustee Fees: In Chapter 7 bankruptcy, a bankruptcy trustee is appointed to oversee your case. The trustee may charge a fee for their services, which is typically deducted from any assets liquidated as part of your bankruptcy. However, most Chapter 7 cases are “no-asset” cases, meaning there are no assets available for distribution to creditors.

Before proceeding with a Chapter 7 bankruptcy filing in Chesapeake, VA, it’s advisable to consult with a bankruptcy attorney to understand the specific costs associated with your case and explore your options for managing those costs. An attorney can provide valuable guidance and help you make informed decisions throughout the bankruptcy process.

Cost to File Chapter 11 Bankruptcy in Chesapeake, VA

Filing for Chapter 11 bankruptcy in Chesapeake, Virginia, is typically more complex and expensive than filing for Chapter 7 or Chapter 13 bankruptcy, as it is primarily designed for businesses and individuals with substantial assets and debts who seek to reorganize their finances. The cost of a Chapter 11 bankruptcy case can vary significantly depending on the complexity of your financial situation and the size of your business. Here’s an explanation of the various costs and fees associated with filing for Chapter 11 bankruptcy in Chesapeake:

1. Filing Fee: The filing fee for a Chapter 11 bankruptcy case is set by the federal government and, it is $2,100. This fee must be paid to the bankruptcy court when you submit your bankruptcy petition.
2. Attorney Fees: Given the complexity of Chapter 11 cases, the legal fees for hiring an experienced bankruptcy attorney can be substantial. Attorney fees for Chapter 11 cases are not fixed and can vary widely based on the complexity of your financial situation, the size of your business, and the specific legal services required. Some Chapter 11 cases may cost tens of thousands or even hundreds of thousands of dollars in attorney fees.
3. Retainers and Hourly Rates: Many bankruptcy attorneys who handle Chapter 11 cases charge their clients based on hourly rates. You may be required to pay a substantial retainer upfront, and you’ll be billed for the attorney’s time and expenses throughout the bankruptcy process.
4. U.S. Trustee Fees: In Chapter 11 bankruptcy, a U.S. Trustee is appointed to oversee the case. The U.S. Trustee assesses quarterly fees based on the debtor’s disbursements and income. These fees can vary depending on the size and complexity of the case.
5. Fees for Professionals: In addition to attorney fees, you may need to hire other professionals, such as financial advisors, accountants, or appraisers, to assist with the bankruptcy process. Their fees can also add to the overall cost of your Chapter 11 case.
6. Administrative Expenses: Throughout the Chapter 11 process, there are various administrative expenses, including court filing fees for motions and other documents, as well as costs related to required notifications and hearings.
7. Creditors’ Committee Expenses: In some cases, a committee of unsecured creditors may be formed to represent the interests of creditors. The debtor is generally responsible for the reasonable expenses of this committee, which can include legal fees and other costs.
8. Other Operational Costs: If you are a business debtor, you will need to continue operating during the bankruptcy process, incurring operational expenses such as payroll, rent, utilities, and insurance.

It’s crucial to note that Chapter 11 bankruptcy cases are highly individualized, and the costs can vary widely depending on the specifics of your financial situation and the complexity of your case. Before proceeding with a Chapter 11 bankruptcy filing in Chesapeake, it is highly advisable to consult with an experienced bankruptcy attorney who can provide a detailed estimate of the potential costs involved and help you plan for the financial aspects of the bankruptcy process.

Cost to File Chapter 13 Bankruptcy in Chesapeake, VA

Filing for Chapter 13 bankruptcy in Chesapeake, Virginia, is a structured process designed to help individuals reorganize their debts and create a manageable repayment plan. The cost of filing for Chapter 13 bankruptcy includes several fees and expenses. Here’s an explanation of these costs:

1. Filing Fee: The filing fee for a Chapter 13 bankruptcy case is set by the federal government. This fee is paid to the bankruptcy court when you submit your bankruptcy petition.
2. Attorney Fees: While you have the option to file for Chapter 13 bankruptcy without an attorney (pro se), many individuals choose to hire a bankruptcy attorney to navigate the complex legal process and ensure their rights are protected. Attorney fees for Chapter 13 cases can vary depending on your location, the complexity of your case, and the attorney’s experience. On average, Chapter 13 attorney fees can range from $2,9500 to $5,700 or more. Some attorneys offer payment plans to help clients manage these costs.
3. Credit Counseling Course: Before filing for bankruptcy, you are required to complete a credit counseling course from an approved agency. The cost of this course typically ranges from $28 to $58.
4. Debtor Education Course: After filing for Chapter 13 bankruptcy, you must complete a debtor education course from an approved agency. Similar to the credit counseling course, the cost of this course is typically in the range of $30 to $60.
5. Trustee Fees: In Chapter 13 bankruptcy, a bankruptcy trustee is appointed to oversee your case and manage your repayment plan. The trustee is entitled to a fee, which is typically a percentage of the payments made through your plan. This fee is part of the overall repayment plan.
6. Credit Report and Miscellaneous Costs: You may need to obtain copies of your credit reports from all three major credit bureaus to accurately list your debts in your bankruptcy petition. Additionally, there may be minor miscellaneous costs for things like postage, photocopies, and notary services associated with your bankruptcy filing.
7. Plan Payments: In a Chapter 13 bankruptcy, you are required to make monthly payments according to your court-approved repayment plan. These payments go toward repaying your debts over a period of three to five years.

Before proceeding with a Chapter 13 bankruptcy filing in Chesapeake, VA, it’s advisable to consult with a bankruptcy attorney to understand the specific costs associated with your case and explore your options for managing those costs. An attorney can provide valuable guidance and help you create a repayment plan that addresses your unique financial situation while adhering to legal requirements.

Reliable Bankruptcy Attorneys in Chesapeake, VA

Below is a list of reputable bankruptcy attorneys in Chesapeake, VA. They can help you with both personal and business bankruptcy information.

The Alliance Legal Group, PLLC
133 Mt Pleasant Rd, Chesapeake, VA 23322, United States

Bedi Legal, P.C.
1305 Executive Blvd Suite 110, Chesapeake, VA 23320, United States

John W Lee, PC – Attorney at Law
4425 Portsmouth Blvd #100, Chesapeake, VA 23321, United States

John E Bedi Attorney
1305 Executive Blvd Suite 110, Chesapeake, VA 23320, United States

Law Offices Of Steve C Taylor
133 Mt Pleasant Rd, Chesapeake, VA 23322, United States

Chesapeake, VA Zip Codes We Proudly Serve:

23320, 23321, 23322, 23323, 23324, 23325

---