How to File for Bankruptcy in Hampton, Virginia | Bankruptcy Lawyers

Bankruptcy Questions

One of the first questions you'll want to ask your Hampton bankruptcy attorney is, "which chapter of bankruptcy is best for me?" You will likely want an immediate answer, but the truth is that it's not possible to give an answer without first reviewing your financial situation and discussing the goals you want to accomplish with bankruptcy.

There are six basic types of bankruptcy provided for in the Bankruptcy Code, but only three types are commonly used by the average person: Chapter 7, Chapter 11, and Chapter 13. The other three types of bankruptcy cases are for more specific purposes: Chapter 12 is for family farmers and fishermen; Chapter 9 is for municipalities; and, Chapter 15 is for cross-border cases.

You must qualify for the chapter of bankruptcy under which you want to file. There are both time requirements (for those who have filed before and/or received a discharge) and requirements regarding whether a chapter is available to individuals or business entities. A qualified Hampton Bankruptcy Lawyer will answer the question of "Who May Be a Debtor?" and provide you with the advice of the best bankruptcy chapter for your situation.

Jurisdiction and Venue

If you have moved or changed residence during the 180 days prior to filing for bankruptcy, you may have to file in a different bankruptcy court than the court in the city/district where you are currently living. Military personnel who are stationed in one place, but maintain a residence in may also have jurisdiction issues about where to file their case. A competent Hampton Bankruptcy Lawyer will review your residential history and other circumstances and identify the correct bankruptcy court for your case.

Decisions to be made with your Hampton attorney while preparing the bankruptcy case

An experienced Hampton Bankruptcy Attorney will review your situation and advise you on these topics:

• Exemptions (how to apply the exemptions, both federally and/or in your state, available to you and best protect the property you would like to keep after bankruptcy)
  • Commonwealth of Virginia has specific statutes that provide for certain property to be protected. A Hampton debt relief lawyer will be fully knowledgeable on these property protection statutes.
    • Enforcement Generally:
      • 8.01-489. Growing crops, not severed, not liable to distress or levy;
      • 8.01-490. No unreasonable distress or levy; sustenance provided for livestock; removal of property;
    • Homestead & Other Exemptions;
      • Chapter 1 General Provisions
        • 34-1. Definitions;
        • 34-2. Injunction restraining sale of exempted property or garnishment of wages;
        • 34-3. Articles not exempt from taxes or levies or for their purchase price;
        • 34-3.1. Property specified in Bankruptcy Reform Act not exempt
      • Chapter 2 Homestead Exemption of Householder
        • 34-4. Exemption created;
        • 34-4.1. Additional exemption for certain veterans
        • 34-4.2. Additional exemption for parents of dependent children;
        • 34-5. To what debts exemptions shall not apply;
        • 34-6. How exemption of real estate secured; form to claim exemption of real property;
        • 34-7. Real estate, subject to encumbrances, may be set apart; if sold, how surplus disposed of;
        • 34-8. Partition or sale of real estate held as exempt by joint tenant, etc.;
        • 34-9. How real estate set apart as exempt may be encumbered or aliened;
        • 34-13. Householder may set apart exemption in personal estate;
        • 34-14. How set apart in personal estate; form to claim exemption of personal property;
        • 34-17. When exemption may be set apart; garnished wages;
        • 34-18. Rents and profits exempt; increase in value of estate set apart;
        • 34-19. How excess in value set apart subjected to debts;
        • 34-20. Proceeds of sale of estate exempt; how evidenced;
        • 34-21. When householder's right to exemption is exhausted;
        • 34-22. Waiver of exemption; its effect; form of waiver;
        • 34-23. How claim enforced when exemption waived, etc.;
        • 34-24. When the exemption ceases; lien of judgment or decree against householde;
        • 34-25. When homestead waived judgments and executions to so state
      • Chapter 3 Other Articles Exempt:
        • 34-26. Poor debtor's exemption; exempt articles enumerated;
        • 34-27. Additional articles exempted to householder engaged in agriculture;
        • 34-28. Deed of trust, etc., on such property void;
        • 34-28.1. Personal injury and wrongful death actions exempt; exceptions
      • Chapter 4 Wages Exempt:
        • 34-29. Maximum portion of disposable earnings subject to garnishment;
        • 34-31. Revocation of such exemption;
        • 34-32. Illegal to garnish such exempt wages out of Commonwealth, etc.;
        • 34-33. Exemption of wages of minor from garnishment process;
        • 34-34. Certain retirement benefits exempt
    • Lien Avoidance (how to handle any liens against your property; whether or not to redeem or reaffirm liens against property or to surrender property and avoid the lien)
    • Executory Contracts and Unexpired Leases (should you assume or keep your agreement for executory contracts and leases or reject them?)

When the decisions have been made and you have provided the required documentation to your Hampton Bankruptcy Lawyer, your bankruptcy forms including the petition, schedules, forms, and statements will be prepared for your review and signature.

Your Hampton Bankruptcy Attorney will also counsel you about which of your debts cannot or might not be discharged by Bankruptcy Court. Consumer Bankruptcy will not get rid of certain debts. Some debts will survive the bankruptcy process. Under the bankruptcy laws, debts that fall into these major categories may turn out to be non-dischargeable unless you can prove an exception exists:

►  Debts you don't list in your bankruptcy filings (11 U.S.C. 523(a)(3)).

► Student loans unless repayment would cause you undue hardship. (11 U.S.C. 523(a)(8)).

► Most federal, state and local taxes (11 U.S.C. 523(a)(1) and any money borrowed on a credit card to
pay those taxes (11 U.S.C. 523 (a)(14)).

► Child support and alimony and debts in the nature of support (11 U.S.C. 523 (a)(5) and 523 (a)(18)).

► Fines or restitution (to the court or victim) imposed in a criminal-type proceeding (11 U.S.C. 523
(a)(7) and 18 U.S.C. 3613).

► Fees imposed by a court for the filing of a case, motion, complaint or appeal or for other costs and
expenses assessed with such filing (11 U.S.C. 523 (a)(17)).

► Debts resulting from intoxicated driving (11 U.S.C. 523 (a)(9)).

► Debts you couldn't discharge in a previous bankruptcy that was dismissed due to fraud. (11 U.S.C.
523 (a)(10)).

There may be a way to get these debts discharged but you absolutely should contact a Hampton Chapter 7 bankruptcy lawyer to discuss whether this is possible for your circumstances. On the bright side, filing for bankruptcy will remove most of the burdens of debt from you. You will then be able to more readily pay any of the debts listed above. Further, some of these debts are negotiable.

Credit Counseling and Debtor Education

Before your Hampton bankruptcy lawyer can file your bankruptcy case, you will be required to complete credit counseling from a government-approved organization. A credit counseling session can take place in person, online or over the telephone and should last about one hour.

The Federal Trade Commission (FTC) has published a helpful brochure with suggestions of how to select a reputable credit counseling agency. It is important to keep in mind that credit counseling must take place before you file for bankruptcy while a second required course, debtor education, takes place after you file. The two courses cannot be taken at the same time.

Local government-approved credit counseling offices in the Hampton area include:

• Clearpoint Financial Solutions, 1055 W Mercury Boulevard 505, Hampton, VA 23666 - (757) 874-2900
• Consumer Credit Counselling Service, 2017 Cunningham Drive, Hampton, VA 23666 - (757) 825-2227
• A Debt Group, 8 San Jose Drive, Newport News, VA 23606 - (757) 223-7477
• Clearpoint Credit Counselling, 728 Thimble Shoals Boulevard A, Newport News, VA 23606 - (757) 847-5850

Filing the Case — Electronic Filing (CM/ECF)

When your documents have been prepared by your Hampton Bankruptcy Attorney, you will be asked to review and sign them. Bankruptcy courts in the State of Virginia use an electronic filing system. Your Hampton bankruptcy lawyer will retain the "wet ink" versions of your signed documents, but will transmit an electronic version of your signed documents to the bankruptcy court.

Property of the Estate

A bankruptcy case commences when the petition is filed with the Bankruptcy Court. Upon commencement of the case, an "estate" is created that includes all of the property and equitable interests owned by the debtor at the time of filing.

After the Case is Filed — the Automatic Stay

As soon as your case is filed, an "automatic stay" goes into effect. This is one of the best protections offered by bankruptcy law. An automatic stay stops wage garnishments; it stops foreclosure actions; it stops repossessions and the sale of property recently repossessed. Your Hampton bankruptcy law firm will contact your creditors to stop any of these actions as soon as your case is filed.

An automatic stay does not last for an indefinite period of time. Creditors may file a motion to have the automatic stay lifted with regards to their claim. Your Hampton bankruptcy lawyer is your best resource for how the automatic stay will benefit your particular financial circumstances.

The Meeting of Creditors (the 341 Meeting)

Bankruptcy law requires that a person filing for bankruptcy attend a meeting of creditors so that the creditors may ask questions about debts and property. This is called the meeting of creditors, or more commonly referred to as the 341 meeting (because of the section of the Bankruptcy Code which requires it). In a typical case, whether it is a chapter 7 or a chapter 13, this is a very brief meeting lasting only a few minutes because most creditors do not attend. If a creditor or creditors attend the meeting, the meeting might last longer but only if the creditors have questions or statements.

The 341 meeting is usually held at the trustee's office or in a conference room type office at the courthouse or some other location. The bankruptcy judge is not present and the meeting is administered by the trustee. (In the majority of cases, most debtors will never appear before the bankruptcy judge as that is only necessary if some sort of objection was raised in the case.)

The meeting room location for bankruptcy cases filed in Hampton is:

Peninsula Business Center II
11751 Rock Landing Drive
Newport News, VA 23606

Some Hampton area creditors who might attend a 341 Meeting include:

Wells Fargo Bank
2409 Kecoughtan Road
Hampton, VA 23661
(800) 869-3557

Best-Way Rent To Own
2056 Nickerson Boulevard
Hampton, VA 23663
(757) 850-0600

Rent-A-Center
1060A W Mercury Boulevard
Hampton, VA 23666
(757) 838-0063

Creditors file Proofs of Claims

Your creditors will begin to file documents called Proofs of Claims (except in "no asset" cases). Creditors are required to file these written statements within 90 days after the first date set for the creditors meeting. The claims describe the debt owed by the debtor (person who filed for bankruptcy) to the creditor (person/company filing the claim).

Each claim is reviewed by your Hampton Bankruptcy Lawyer to verify that the claim is accurate. It is not unusual for a company that processes thousands of these claims every day to file a claim in the wrong case. If you believe that a claim filed against you is incorrect, your Hampton Bankruptcy Attorney will file an objection to the claim. If you and the creditor cannot come to an agreement about the claim or its amount, the bankruptcy judge will review the claim and render a decision.

Hampton Chapter 7, Chapter 11, Chapter 12, and Chapter 13 Bankruptcy Attorneys serve Hampton and its surrounding areas.

Serving clients throughout Southeastern Virginia, including Capeville, Chesapeake, Cortland, Eastville, Franklin, Gloucester, Gloucester Point, Grafton, Hampton, Jamestown, Newport News, Norfolk, Petersburg, Poquoson, Portsmouth, Pungoteague, Richmond, Smithfield, Suffolk, Sussex, Totaro, Virginia Beach, Wane Neck, White Stone Beach, Williamsburg, areas in the vicinity of Naval Amphibious Base Little Creek, Naval Station Norfolk, Norfolk International Airport, Norfolk International Terminals, Norfolk Naval Shipyard, NS-Norfolk, and other communities in the Commonwealth of Virginia.

Call a Hampton Bankruptcy Law Firm and schedule a free initial consultation.