If you’re considering filing bankruptcy in Virginia Beach, 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 Virginia Beach, VA, or anywhere else in the United States, is a legal process designed to help individuals and businesses struggling with overwhelming debt to obtain relief and a fresh financial start. However, not everyone is qualified to file for bankruptcy, and eligibility depends on various factors, including your income, debts, and the type of bankruptcy you wish to pursue.

1. Residency and Venue:

First and foremost, to file for bankruptcy in Virginia Beach, you must meet the residency requirements. You should have lived in Virginia for at least 91 of the 180 days preceding the filing of your bankruptcy petition. If you’ve recently moved to Virginia Beach, make sure you meet this requirement before proceeding.

In addition to residency, you must file your bankruptcy case in the appropriate venue, which is typically the bankruptcy court for the division where you reside. Virginia Beach is within the Eastern District of Virginia, so your case would be filed with the U.S. Bankruptcy Court for the Eastern District of Virginia, Norfolk Division.

2. Eligibility for Chapter 7 Bankruptcy:

Chapter 7 bankruptcy, also known as “liquidation” or “straight bankruptcy,” is designed for individuals and businesses that cannot afford to pay their debts. To qualify for Chapter 7 bankruptcy in Virginia Beach, you must pass the means test, which assesses your income and expenses to determine if you have enough disposable income to repay your debts.

The means test considers your average monthly income over the past six months. If your income is below the median income for a household of your size in Virginia, you generally qualify for Chapter 7. However, if your income exceeds the median, you may still qualify if you can demonstrate that after deducting allowable expenses, you have little or no disposable income.

3. Eligibility for Chapter 13 Bankruptcy:

Chapter 13 bankruptcy is often referred to as “reorganization” or “wage earner’s bankruptcy.” It allows individuals with a steady income to create a repayment plan to pay off their debts over three to five years. You must have regular income to qualify for Chapter 13.

There is no specific income threshold for Chapter 13 eligibility, but you must be able to show that you can make the required monthly payments outlined in your proposed repayment plan. Your debts also cannot exceed certain limits: these limits are adjusted periodically to account for inflation.

4. Bankruptcy Counseling and Education:

Before filing for bankruptcy in Virginia Beach, you are required to undergo credit counseling from an approved agency within 180 days before filing your petition. After your case is filed, you must also complete a financial management course. These counseling and education requirements are intended to help you better understand your financial situation and budgeting skills.

5. Meeting Other Filing Requirements:

Apart from the above-mentioned criteria, you need to meet various other filing requirements. These include providing accurate and complete financial information in your bankruptcy petition and cooperating with the bankruptcy trustee throughout the process. You may also need to attend a creditors’ meeting (341 meeting) to answer questions about your finances.

6. Exemptions and Asset Protection:

When filing for bankruptcy in Virginia Beach, you should be aware of the state’s exemptions, which determine what property you can keep during bankruptcy. Virginia allows residents to choose between federal bankruptcy exemptions or state-specific exemptions. These exemptions protect certain assets such as your home, car, and personal belongings from being liquidated to pay off creditors.

Qualifying for bankruptcy in Virginia Beach, VA, involves meeting specific residency requirements, passing the means test for Chapter 7, demonstrating regular income for Chapter 13, and adhering to other legal and financial obligations. Bankruptcy is a complex legal process, and it is highly recommended to consult with an experienced bankruptcy attorney who can assess your unique situation and guide you through the process to achieve the best possible outcome for your financial future.

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

In Virginia Beach, VA, you are not required by law to hire a lawyer to file for bankruptcy. Individuals have the legal right to represent themselves in bankruptcy court, a practice known as “pro se” filing. However, while it is possible to file for bankruptcy without an attorney, it’s essential to understand the complexities and potential risks associated with doing so.

Here are some factors to consider when deciding whether or not to hire a lawyer for your bankruptcy filing in Virginia Beach:

1. Legal Knowledge and Expertise: Bankruptcy law is intricate and subject to change. Attorneys who specialize in bankruptcy law have the knowledge and expertise to navigate the legal system effectively. They understand the federal and state laws, court procedures, and local rules that apply to bankruptcy cases. Without legal training, you may struggle to comprehend and meet all the necessary requirements and deadlines.

2. Assessing Your Options: An experienced bankruptcy attorney can help you determine which chapter of bankruptcy (Chapter 7, Chapter 13, or potentially Chapter 11) is most suitable for your financial situation. They will evaluate your income, assets, and debts and guide you toward the best course of action to achieve your financial goals.

3. Paperwork and Documentation: Bankruptcy filings involve extensive paperwork and documentation. Missing or incomplete forms can result in delays or even dismissal of your case. Lawyers are skilled at completing the necessary paperwork accurately and efficiently, reducing the likelihood of mistakes that could jeopardize your case.

4. Protection of Assets: A bankruptcy attorney can help you maximize your exemptions, which are legal provisions that allow you to protect certain assets from being liquidated to pay off creditors. They can help you understand the exemptions available in Virginia and the federal exemptions and strategically use them to protect your property.

5. Negotiating with Creditors: If you file for Chapter 13 bankruptcy, which involves creating a repayment plan, an attorney can negotiate with creditors on your behalf to reach favorable terms. They can advocate for lower interest rates or reduced balances, making your repayment plan more manageable.

6. Court Representation: Navigating bankruptcy court can be intimidating, and representing yourself may result in stressful encounters with creditors and judges. An attorney can act as your advocate and represent your interests during court proceedings, ensuring that your rights are protected.

7. Avoiding Costly Mistakes: Bankruptcy filings are subject to strict rules and regulations. Making errors or omissions in your paperwork or failing to adhere to the court’s requirements can lead to significant consequences, including dismissal of your case or the loss of assets. An attorney can help you avoid these costly mistakes.

8. Post-Bankruptcy Planning: A skilled bankruptcy attorney can provide valuable advice on rebuilding your credit and managing your finances after bankruptcy. They can help you develop a plan to improve your financial situation and make a fresh start.

If you are unsure whether you need an attorney to file for bankruptcy in Virginia Beach, it’s advisable to schedule a consultation with a bankruptcy lawyer. During the consultation, you can discuss your specific financial situation, legal options, and the potential benefits of having legal representation. Ultimately, the decision should be based on your individual circumstances and comfort level with the bankruptcy process, but consulting with an attorney is a prudent step to ensure you make informed choices regarding your financial future.

Cost to File Chapter 7 Bankruptcy in Virginia Beach, VA

The cost to file Chapter 7 bankruptcy in Virginia Beach, VA, includes several fees and expenses, but the exact amount can vary depending on your individual circumstances and whether you choose to work with an attorney. Here’s a breakdown of the key costs associated with filing Chapter 7 bankruptcy:

1. Filing Fee: The filing fee for a Chapter 7 bankruptcy case in Virginia Beach was $373. This fee is payable to the U.S. Bankruptcy Court and is typically required at the time of filing. It’s important to note that filing fees can change over time, so it’s a good idea to check the current fee with the bankruptcy court or on their website before initiating the filing process.
2. Credit Counseling and Financial Management Courses: Before and after filing for Chapter 7 bankruptcy, you are required to complete credit counseling and financial management courses from approved providers. These courses can cost between $30 to $60 each, on average. The total cost will depend on the specific providers you choose and whether you qualify for fee waivers or reduced fees based on your income.
3. Attorney’s Fees (if applicable): While you can file for Chapter 7 bankruptcy without an attorney (pro se), many individuals choose to hire a bankruptcy attorney to guide them through the process. Attorney fees can vary widely depending on the complexity of your case and the attorney’s experience. Some attorneys charge a flat fee, while others may charge by the hour. Typical attorney fees for Chapter 7 bankruptcy in Virginia Beach can range from $1,400 to $2,700 or more.
4. Credit Report and Miscellaneous Costs: You may need to obtain a copy of your credit report to ensure that you have a complete list of your creditors. Credit report fees vary but typically range from $14 to $36 per report. Additionally, there may be other miscellaneous costs associated with your bankruptcy, such as postage, photocopying, and notary fees.
5. Exemption for Low-Income Filers: If you have a very low income and cannot afford the filing fee, you may be eligible for a fee waiver or installment payments. To determine your eligibility, you’ll need to complete and submit the appropriate forms to the bankruptcy court.

Keep in mind that bankruptcy laws and fees can change over time, so it’s crucial to verify the most current information with the U.S. Bankruptcy Court for the Eastern District of Virginia, Norfolk Division, or consult with a bankruptcy attorney who can provide you with updated details on the costs associated with filing Chapter 7 bankruptcy in Virginia Beach. Additionally, if your financial circumstances are particularly challenging, you may explore options for reduced fees or waivers to make the process more accessible.

Cost to File Chapter 11 Bankruptcy in Virginia Beach, VA

Filing for Chapter 11 bankruptcy in Virginia Beach, VA, is typically more complex and expensive than filing for Chapter 7 or Chapter 13 bankruptcy due to its focus on business reorganization. Chapter 11 is primarily designed for businesses, although some individuals with substantial assets and debts may also use it. The cost of filing for Chapter 11 bankruptcy can vary widely depending on the size and complexity of the case. Here’s a breakdown of the key expenses associated with filing for Chapter 11 bankruptcy:

1. Attorney’s Fees: Legal representation is almost essential for Chapter 11 bankruptcy cases due to their complexity. The fees for hiring an experienced bankruptcy attorney can vary significantly based on factors such as the complexity of your financial situation, the size and structure of your business, and the attorney’s hourly rate or fee structure. Expect to pay several thousand dollars to tens of thousands of dollars for legal assistance throughout the Chapter 11 process.
2. Filing Fee: The filing fee for a Chapter 11 bankruptcy case in Virginia Beach is $2,120. This fee is paid to the U.S. Bankruptcy Court and is typically required at the time of filing. It’s important to note that filing fees can change over time, so it’s advisable to check the current fee with the bankruptcy court or on their website before initiating the filing process.
3. U.S. Trustee Fees: In Chapter 11 cases, the U.S. Trustee’s Office charges quarterly fees based on the debtor’s disbursements or quarterly disbursements to creditors. These fees can vary depending on the amount of disbursements and may be subject to change. It’s essential to work closely with your attorney to understand and budget for these fees.
4. Professional Fees: In complex Chapter 11 cases, professionals such as financial advisors, accountants, and appraisers may be necessary to assist with the restructuring process. Their fees can be substantial and will depend on the scope of their work.
5. Administrative Expenses: Throughout the Chapter 11 process, there may be additional administrative expenses, such as court-approved fees for experts, court reporters, and other services related to the case.
6. Plan Confirmation Costs: Developing a feasible and acceptable Chapter 11 reorganization plan is a crucial part of the process. The costs associated with drafting, reviewing, and confirming the plan can be significant.
7. Ongoing Operational Costs: As the debtor, you will be responsible for covering the ongoing operational expenses of your business during the Chapter 11 proceedings. This includes expenses such as employee salaries, rent, utilities, and inventory costs.

It’s important to note that Chapter 11 bankruptcy cases can be lengthy and involve ongoing expenses throughout the process. Therefore, it’s critical to have a comprehensive understanding of your financial situation and the potential costs associated with your specific case before proceeding. Consulting with a knowledgeable bankruptcy attorney in Virginia Beach who specializes in Chapter 11 cases is strongly recommended.

Cost to File Chapter 13 Bankruptcy in Virginia Beach, VA

The cost to file Chapter 13 bankruptcy in Virginia Beach, VA, includes several fees and expenses associated with the bankruptcy process. Chapter 13 bankruptcy is often referred to as a “wage earner’s bankruptcy” and involves creating a repayment plan to pay off your debts over a period of three to five years. Here’s a breakdown of the key costs involved:

1. Filing Fee: The filing fee for a Chapter 13 bankruptcy case in Virginia Beach is paid to the U.S. Bankruptcy Court and is typically required at the time of filing. It’s important to note that filing fees can change over time, so it’s advisable to check the current fee with the bankruptcy court or on their website before initiating the filing process.
2. Attorney’s Fees: While it is possible to file for Chapter 13 bankruptcy without an attorney (pro se), many individuals opt to work with a bankruptcy attorney due to the complexity of the process. Attorney fees for Chapter 13 cases can vary depending on the complexity of your case and the attorney’s experience. They may charge a flat fee or an hourly rate. Typical attorney fees for Chapter 13 bankruptcy in Virginia Beach can range from $2,840 to $4,720 or more. Your attorney will help you develop your repayment plan, negotiate with creditors, and navigate the legal aspects of your case.
3. Credit Counseling and Financial Management Courses: Like Chapter 7 bankruptcy, you are required to complete credit counseling and financial management courses from approved providers before and after filing for Chapter 13 bankruptcy. The cost of these courses can vary but is generally between $30 to $65 for each course. You may be eligible for fee waivers or reduced fees based on your income.
4. Trustee Fees: In Chapter 13 bankruptcy, a bankruptcy trustee is appointed to administer your case and oversee your repayment plan. The trustee’s fees are typically included in your monthly plan payments. They are a percentage of the funds distributed to creditors and are set by the U.S. Department of Justice.
5. Plan Payments: The heart of Chapter 13 bankruptcy is your repayment plan, where you commit to making monthly payments to the bankruptcy trustee to pay off your debts over time. The total amount you pay through the plan depends on your income, expenses, and the type of debts you have. The length of the plan can be three to five years.
6. Miscellaneous Costs: There may be other miscellaneous costs associated with your Chapter 13 bankruptcy, such as postage, photocopying, and notary fees.

It’s essential to have a clear understanding of your financial situation and budget for these costs before filing for Chapter 13 bankruptcy. Consulting with a bankruptcy attorney in Virginia Beach is highly recommended, as they can provide you with a more accurate estimate of the total costs and help you navigate the complexities of the Chapter 13 process. Additionally, your attorney can work with you to develop a feasible repayment plan that aligns with your financial capabilities and goals.

Reliable Bankruptcy Attorneys in Virginia Beach, VA

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

John W Lee, PC – Attorney at Law
291 Independence Blvd #530, Virginia Beach, VA 23462, United States

The Merna Law Group, P.C.
621 N Lynnhaven Rd, Virginia Beach, VA 23452, United States

Hampton Roads Bankruptcy Services
2628 Barrett St Suite 200, Virginia Beach, VA 23452, United States

Boleman Law Firm, P.C.
272 Bendix Rd #330, Virginia Beach, VA 23452, United States

Tom C Smith Law Office
1600 Virginia Beach Blvd, Virginia Beach, VA 23454, United States

Virginia Beach, VA Zip Codes We Proudly Serve:

23451, 23452, 23453, 23454, 23455, 23456, 23457, 23459, 23460, 23461, 23462, 23464

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