Virginia Bankruptcy Law - Consumer Guide
The most frequently asked bankruptcy questions pertain to discharge,
because ultimately, discharge or final release from debts is the primary goal of everyone who files
bankruptcy. Discharges are available in both Chapter 7 & 13 cases. The term "straight bankruptcy" usually refers to Chapter 7. In a
Chapter 7 case, all debts are subject to elimination as if paid in full.
No payments to creditors are made and debts are legally unenforceable
once discharge is granted by the court.
Be aware that all options are not available to all debtors. The availability of alternatives depends on
several factors. State & federal laws change frequently through the legislative process and through court
interpretations. Each debtor presents a unique financial history and assortment of debts. Local rules and
customs vary. Nevertheless, all debtors gain the maximum benefit available similarly: careful planning and
selection of options before filing.
Chapter 13 cases provide either full or partial payment to creditors.
In full Chapter 13 cases, payment amounts are reorganized to allow
extended payment schedules at lower interest rates. In partial Chapter
13 plans, only a portion of debts owed are repaid according to the
ability of the debtor(s). Remaining balances, upon completion of the
plan term, are discharged similar to a Chapter 7 case. Litigation of discharge issues remains fertile ground for all
attorneys representing creditors.
Virginia Bankruptcy Law - Frequently Asked Questions
Special items are subject to extraordinary regulation. Liability for debts owed to government agencies or
created without knowing consent of others receive a higher level of scrutiny. For more information, see:
Most law firms that specialize in consumer cases offer free initial consultations. These meetings serve
several purposes. Potential clients usually ask legal questions, inquire about fees and estimated costs, and
evaluate any number of lawyers for legal representation. Lawyers also evaluate clients. Because pending
legislation will increase attorney liability for client misrepresentations, the time and difficulty required to
represent each is factored into costs. Likewise, lawyers avoid potential clients who are considered likely to
create liability for misrepresentation, attempt bankruptcy fraud, or violate legal disclosure requirements.
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