BURKE BANKRUPTCY LAWYER

Chapter 7

The most common type of bankruptcy is a Chapter 7 bankruptcy. This is also known as a liquidation bankruptcy.  The process typically takes approximately three to four months for most typical situations. In order to start the case, you file a petition that provides information regarding your debts, assets, income, expenses, and personal information. Even though the court can order that certain assets be sold in a Chapter 7, there are many assets you can keep. Any asset that is protected from liquidation is called an exempt asset. These items have certain laws that protect the asset. If you have more than the minimal items, the bankruptcy trustee sells the debtor’s nonexempt assets and uses the proceeds of such assets to pay creditors.

Chapter 13

A Chapter 13 bankruptcy is also called a wage earner’s plan. The plan enables individuals with regular income to develop a plan to repay all or part of their debts. Some individuals pay back only required debt, such as priority tax debt and mortgage arrearages, while other individuals pay back 100% of all debts. Under this chapter, debtors propose a repayment plan over three to five years. The plan is based on various factors, including income, non-exempt assets, etc.

Debt Settlements

Sometimes it is ideal to negotiate directly with the creditor. We often recommend this option when an individual has low debts or a couple creditors. This option does not have any guarantees, but it typically can save you save money on the full amount owed. It also can help you avoid bankruptcy for only a couple debts or when you cannot file bankruptcy for a particular reason. If you are considering using a debt consolidation company to settle your debts, make sure to research all the benefits and risks.

To review your options, please contact our office. Our office is located close to Burke, just down Fairfax County Parkway in Herndon, Virginia. We are just a mile down the Elden St. exit. We offer plenty of free parking.

Life in Burke, Virginia

Problems facing individuals in Burke are different than the rest of the state due to the high cost of living associated with being a suburb of Washington D.C., only half an hour outside of the district. The population of Burke is approximately 41,000, and most of its residents own their own homes. However, even if you are making a decent income you may still find it is a struggle to make ends meet due to the high cost of living in the area. We understand the financial struggles of those living in Burke and Fairfax County, and want to make sure that you retain a bankruptcy attorney that understands the high cost of living in this area.

Qualifying for Chapter 7 Bankruptcy in Burke, VA

Filing bankruptcy can sometimes help relieve some of the financial struggles. To qualify for Chapter 7, the court will look at your income for the last 6 months. If the debtor’s income is less than or equal to the state median, they can file for Chapter 7.  This can mean it is more difficult for individuals living in the more expensive parts of the state to qualify for a Chapter 7. This is a common problem for many individuals living in Burke because the median income is based on incomes from all over the state. Living in Burke is drastically more expensive than living in other parts of Virginia, such as Charlottesville or Williamsburg.

Alternative Ways of Qualifying: The Means Test

However, there is another way to qualify for Chapter 7 that involves using your income and subtracting out allowable expenses; this process is called the Means Test. Luckily, if your six month income is above the Virginia state median, we can take into consideration the allowable expenses for your county under the guidelines provide by the Internal Revenue Service. For clients living in Burke, we can often use numbers based on cost of living in Fairfax County. Also, we may be able to consider other high costs of living in the area, such as insurance payments, medical expenses, childcare, child support and similar things.

If you have above median income, finding an experienced bankruptcy attorney can make the difference in whether you qualify for Chapter 7 or not. If you do not qualify for Chapter 7 — or determine that you should not file a Chapter 7 — and have to file a Chapter 13, the Means Test will also help dictate the payment plan during the course of your repayment plan. Having an experienced Burke Bankruptcy Lawyer can make the difference in how smoothly your case goes.

WHERE TO FILE BANKRUPTCY IF YOU LIVE IN BURKE, VA

Bankruptcy is a federal process, which means you file in a federal court. Virginia has two federal districts – the Eastern and Western Districts. There are four to seven courthouses in each Virginia district. Most people file in the jurisdiction where you reside; if you live in any part of northern Virginia, you will usually file in the Alexandria Division of the Eastern District of Virginia.

There are other ways to determine where you can file, such as where your largest asset is located. However, it is usually easiest to file in the jurisdiction you reside. Most of our bankruptcy clients never go the bankruptcy courthouse; most cases only have one mandatory appearance at the Meeting of Creditors (or 341 hearing). In Alexandria, this hearing is
in an office building in Old Town Alexandria. You must bring your Driver’s License and Social Security Card with you so that a court appointed Trustee can verify your identity. Other questions you will be asked are about your petition, including your debts and assets. This is usually a hearing that takes three to five minutes for your questions.

CONTACT US!

If you have concerns about debt issues, bankruptcy, or similar, schedule an appointment with our office. One of our experienced Burke Bankruptcy lawyers will be happy to schedule a meeting with you.

Zip Codes in Burke, Virginia: 22009, 22015, 22032, 22152, 22153