Avoid Mistakes When Planning and Filing Virginia Bankruptcy Cases

The best-planned bankruptcy cases go unnoticed. A few debtors glide through the system without attracting attention and receive full discharges in record time. Luck is not involved, but rather each successful debtor begins planning strategically a few weeks or months in advance. These debtors know something that you don’t.

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Ask a Bankruptcy Lawyer for Help – Expand Your Options Quickly

If you are thinking about filing Chapter 7 or Chapter 13 bankruptcy, you are not alone. Complete the form below to contact a sponsoring bankruptcy lawyer. Ask all questions you deem important without cost or obligation of any kind. Free help is only a few minutes away.

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Virginia Bankruptcy Law - "What happens if creditors try to collect while bankruptcy is pending?"

If creditors attempt collection any debt while a Virginia bankruptcy case is pending, court sanctions may be ordered by the court. Creditors are allowed to collect only specific debts and take specific actions which are authorized by the court. 11 U.S.C. 362 sets forth exceptions to the automatic stay. If a creditor desires to proceed with collection efforts, a motion must be filed seeking permission. Creditors who fail to obtain court permission are subject to sanctions. If creditors attempt collection of a discharged debt after a case is closed, the procedure is similar. The debtor may ask the court to reopen the case and impose sanctions upon the creditor. Available sanctions include a finding of contempt of court, specific injunctive relief, and the imposition of fines and incarceration. The most common sanction is the imposition of a civil fine.

Virginia Bankruptcy Law - Employer Liability

The code also specifically prohibits employers to discriminate against employees because of bankruptcy. To become actionable, the employee's bankruptcy proceeding must be the sole basis for discrimination. In practice, employers are well versed on discrimination law, and well advised by their attorneys concerning "plausible deniability." Any other basis, such as those commonly documented by memorandum warning of poor job performance, often relieve employers from liability. For employees, the bankruptcy discrimination statute is grossly ineffective.

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.

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