Individual Bankruptcy
About
our Practice
Bankruptcy is never an easy
option for anyone. Sometimes, an unforeseen event, such as an accident, illness,
or layoff occurs, and before you know it, your debts are too much to handle.
Bankruptcy can be a very complex practice area, fraught with difficult decisions
that require careful planning and strategy. The Firm's attorneys have been representing
parties in the U.S. Bankruptcy Court for over a decade and are able to assist
you with virtually all of your bankruptcy needs. The Firm carefully analyzes
each client's situation so that we can recommend an analytical, cost-effective,
and individually-crafted approach to maximize each client's rights under the
U.S. Bankruptcy Code. Note: This page only deals with consumer debtors. If you
are a creditor, you should look to our Creditor's Rights Practice Ares. If you
are a business looking to reorganize, you should look to our Commercial Representation
Group. Group Mission Statement: The Firm represents each client aggressively
and professionally, and we inform each client of the options available under
the Bankruptcy Code of the United States of America before taking any course
of action.
Chapter 7 Liquidation
A bankruptcy filed under Chapter 7 of the Bankruptcy Code is essentially a "liquidation"
of an individual's estate and a complete discharge from all of the individual's
debts, with some exceptions. The Firm's Bankruptcy Practice Group is capable
of steering you through the bankruptcy maze so that you can start your financial
life over with a clean slate. Chapter 7 bankruptcy is not simple, easy, or even
the right choice for some clients. For instance, certain debts are non-dischargeable
(meaning it cannot be wiped out) in a Chapter 7 bankruptcy, such as taxes, child
support, spousal support, property support obligations incurred through divorce
(with exceptions), debts incurred through fraud, debts resulting from "willfully
and maliciously" inflicted injuries, student loans (under most circumstances),
and others. A Chapter 7 bankruptcy often requires one to surrender property
as a condition to receiving discharge. However, under Virginia law, one is allowed
to retain certain types of property, up to a certain post-bankruptcy value.
In addition, sometimes the Chapter 7 Trustee will "abandon" property due to
the cost of taking control, maintaining, and liquidating certain properties
(such as houses) - If a creditor is secured by property (i.e. a house or automobile),
they can recover their property unless you agree to "reaffirm" your debt to
them.
Chapter 13 "Wage Earner" Bankruptcy
A Chapter 13 bankruptcy is entirely different from a Chapter 7 liquidation.
In a Chapter 13 bankruptcy, the debtor agrees to pay back a portion of their
debts over time, usually between three to five years. Chapter 13 bankruptcy
offers numerous advantages to debtors - such as the ability to stay in possession
of secured property and broader discharge from certain debts that are non-dischargeable
in a Chapter 7 bankruptcy. A Chapter 13 bankruptcy requires steady income, patience,
and careful planning. The Chapter 13 bankruptcy process is not easy. Our attorneys
must carefully analyze your assets, income, and debts. Next, we must devise
a Chapter 13 Plan explaining the debts to be paid, how they will be paid, the
length of time for repayment, the disposition of certain property, and other
issues. The proposed Plan is then subject to objections from creditors and the
Chapter 13 Trustee for a period of time. If everything proceeds smoothly, the
Plan must ultimately be approved by the U.S. Bankruptcy Court. After the Plan
is approved, the debtor must make a monthly payment to the Chapter 13 Trustee,
who then disburses the funds to the various creditors until the Plan is completed.
Attorneys
Scott A. Surovell