Chapter 13 Bankruptcy for Small Businesses in Virginia

13 Bankruptcy for Small Businesses in Virginia

Chapter 13 bankruptcy is a legal procedure available to individuals and small businesses to repay all or part of their debts under the protection and supervision of the court. It provides a lifeline for businesses that are struggling to meet their financial obligations. While it might sound like an extreme option, this is often a good strategy for small businesses and owners. Here’s what you need to know and how a bankruptcy attorney can help guide you through Chapter 13 bankruptcy in Virginia.

Eligibility for Small Businesses Using Chapter 13 Bankruptcy

To qualify for Chapter 13 bankruptcy, a debtor must be an individual or a sole proprietorship. Unfortunately, partnerships and corporations are not eligible. Moreover, debtors must have a regular income that is enough to meet their necessary living expenses and to keep up with the required payments under the plan.

The Basics of Chapter 13 Bankruptcy

Chapter 13 bankruptcy is often referred to as a wage earner’s plan as it enables individuals with regular income to propose a plan to repay all or part of their debts over three to five years. This procedure is different from Chapter 7 bankruptcy, which liquidates the debtor’s assets to repay creditors.

Avoid Bankruptcy Proceedings with Partnerships

If your small business is a partnership or corporation, you may consider alternatives to bankruptcy such as debt restructuring, negotiation with creditors, or a business turnaround plan. Consulting with a bankruptcy attorney can provide insight into the best option for your unique situation.

Benefits of Chapter 13 Bankruptcy in Virginia for Small Businesses

Chapter 13 bankruptcy allows small businesses to keep their property and catch up on missed mortgage, car, and non-dischargeable priority debt payments. It also provides a chance to reschedule secured debts and extend them over the life of the Chapter 13 plan, potentially lowering the payments.

Nonexempt Business Property

Nonexempt property refers to assets that you must surrender to the bankruptcy trustee because they’re not covered by an exemption. The trustee then sells these assets and uses the proceeds to repay your creditors.

Exempt Business Property Types

Exempt property, on the other hand, is what you are allowed to keep when you file for bankruptcy. In Virginia, these include a portion of the equity in your home, car, household appliances, clothes, family heirlooms, and personal effects. Certain tools used in your trade or profession may also be exempt. A bankruptcy attorney can provide a full list of exempt property under Virginia law.

Reduce the Balance of Secured Loans

One of the benefits of Chapter 13 bankruptcy is the ability to reduce the balance of secured loans to the value of the property securing the loan. This process is called “cramdown” and can be particularly beneficial for underwater mortgages and car loans.

Get Rid of Business Debts

While certain debts like student loans, child support, alimony, and certain taxes are not dischargeable in bankruptcy, most business debts can be discharged in a Chapter 13 bankruptcy. This can help your business start anew after emerging from bankruptcy.

Pay Off the Important Creditors Quickly

Chapter 13 bankruptcy allows small businesses to prioritize payments to crucial creditors, allowing for the survival of the business. This can be particularly important if a significant portion of the debt is owed to suppliers or other crucial business relationships.

Using Chapter 13 Bankruptcy to Repay Business Obligations with Personal Guarantees

Chapter 13 is especially helpful when the business owner has personally guaranteed business debts. The automatic stay provision of Chapter 13 bankruptcy halts all collections, including those on personal guarantees. The repayment plan then allows for a more manageable repayment of these debts.

Why It’s Important to Work with a Bankruptcy Lawyer When Filing for Chapter 13 Bankruptcy in Virginia

Working with a bankruptcy lawyer can streamline the process of filing for bankruptcy. An attorney can help you prepare the necessary paperwork, propose a repayment plan, and represent you at hearings. Additionally, they can guide you through the complex bankruptcy laws and ensure that you fully understand the implications of filing for bankruptcy.

Request a Consultation with the Law Offices of Robert S. Brandt for Help Filing Chapter 13 Bankruptcy in Virginia

If you are considering filing for Chapter 13 bankruptcy, contact the Law Offices of Robert S. Brandt. I understand the nuances of bankruptcy law and can guide you through this challenging time. With a consultation, I can assess your situation and help you make an informed decision about whether Chapter 13 bankruptcy is the right choice for your small business in Virginia. Contact me to schedule your confidential consultation and start the journey towards financial recovery.

Chapter 7 Bankruptcy: Understanding the Costs

Bankruptcy is often an option that can provide relief to individuals and businesses struggling with overwhelming debt. One of the most common types of bankruptcy is Chapter 7, which involves liquidating assets to pay off creditors. While Chapter 7 bankruptcy can offer a fresh start for those in financial distress, it’s important to understand the costs associated with filing for Chapter 7 bankruptcy in VA.

Chapter 7 Bankruptcy: The Direct and Indirect Costs

The direct costs of filing for Chapter 7 bankruptcy include court filing fees, credit counseling fees, and attorney fees. Court filing fees vary depending on the jurisdiction, but they typically range from a few hundred to several thousand dollars. Credit counseling fees are generally around $50, and attorney fees can range from a few hundred to several thousand dollars depending on the complexity of the case.

In addition to these direct costs, there are also indirect costs associated with filing for Chapter 7 bankruptcy. For example, filing for bankruptcy can have a negative impact on your credit score, which can make it more difficult to obtain credit in the future. You may also have to pay higher interest rates on loans and credit cards due to your bankruptcy filing.

How to Find the Expected Costs of Your Bankruptcy

The best way to find the expected costs of your Chapter 7 bankruptcy is to consult with an experienced bankruptcy attorney. They can evaluate your situation and provide an estimate of the fees and costs associated with your case.

It’s also important to understand that the costs of filing for bankruptcy can vary depending on your individual circumstances. For example, if you have a large amount of debt or complex assets, your case may require more time and resources from your attorney, which can increase the cost of filing for bankruptcy.

How a Chapter 7 Bankruptcy Attorney Can Help Lower Your Costs

While the costs of filing for Chapter 7 bankruptcy can seem overwhelming, there are ways to lower your costs. One of the most effective ways to do this is to work with an experienced bankruptcy attorney.

A Chapter 7 bankruptcy attorney can help you navigate the legal process, ensure that all necessary paperwork is filed correctly and on time, and represent you in court if necessary. They can also negotiate with your creditors on your behalf and help you explore alternatives to bankruptcy if appropriate.

Request a Consultation With The Law Office of Robert S. Brandt When Filing Chapter 7 Bankruptcy in VA

If you’re considering filing for Chapter 7 bankruptcy in VA, it’s important to work with an experienced bankruptcy attorney like The Law Office of Robert S. Brandt who can guide you through the process and help lower your overall costs throughout. 

I help my clients through the entire Chapter 7 bankruptcy process, delivering the best result possible and reducing the amount of time and stress they have to go through. 

Get in touch with me to request a consultation today.

Stop Garnishment and Get Judgement Relief: A Short Guide

Dealing with garnishments can be a daunting task and undoubtedly stressful, but it’s essential to understand how to stop them and get judgment relief. This short guide will review how to stop the garnishment from taking your income or assets, and under what circumstances you might be able to get exemptions from garnishment in Virginia.

How Garnishment Works

Garnishment occurs when a creditor obtains a court order allowing them to seize your assets to satisfy an outstanding debt. The garnishment process can target your bank account or wages, depending on the type of debt owed. In most cases, creditors will initiate garnishment after attempts to collect a debt through other means have failed. It’s important to note that certain types of income, such as Social Security benefits or disability payments, are typically protected from garnishment.

How a Foreclosure Might Help You Save Money

If you’re facing garnishment, a foreclosure might be an option to consider. Foreclosure is the legal process by which a lender can take possession of your home if you fail to make your mortgage payments. While a foreclosure can be a difficult and emotional process, it can also help you save money by eliminating your mortgage debt and stopping garnishment efforts.

How to Stop Bank or Wage Garnishments

Stopping a bank or wage garnishment requires taking action to resolve the underlying debt. Here are some steps you can take:

  • Negotiate with your creditor to settle the debt or arrange a payment plan.
  • File for bankruptcy, which will temporarily halt the garnishment process.
  • Claim an exemption if you’re eligible. Exemptions can protect certain types of income or assets from garnishment.

How Can You Qualify for a Garnishment Exception

Garnishment exemptions vary by state, but typically fall into two categories: income exemptions and asset exemptions. Income exemptions protect certain types of income from garnishment, while asset exemptions protect specific assets from seizure. Examples of common exemptions include:

  • Exemptions for Social Security benefits or disability payments
  • Exemptions for retirement accounts, such as 401(k)s or IRAs
  • Exemptions for homestead property, which can protect your home from foreclosure

If You’re Facing Garnishment in Virginia Contact the Law Offices of Robert S. Brandt

If you’re facing garnishment in Virginia, the Law Offices of Robert S. Brandt can help. With over 35 years of experience, I am an experienced bankruptcy attorney and the lawyer to stop garnishment who can guide you through the garnishment process and help you find a solution that works for you. Contact the Law Offices of Robert S. Brandttoday to schedule a consultation.

Steps to Take Before Declaring Bankruptcy With Your Lawyer

Bankruptcy is a complex legal process where an individual or business declares that they are unable to pay its debts. This can be a daunting decision to make, but sometimes it is necessary to regain control of your finances. Before you declare bankruptcy, it is important to take certain steps to ensure that you are making the right decision. Let’s go over the steps to take before declaring bankruptcy with the help of a bankruptcy lawyer in Fairfax VA.

Get in Touch With a Bankruptcy Lawyer in Fairfax VA

One of the first things you should do is get in touch with a bankruptcy lawyer in Fairfax VA. They can help you determine if bankruptcy is the right option for you and guide you through the process. The Law Offices of Robert S. Brandt is a reputable law firm in Fairfax VA that specializes in bankruptcy cases. They have experienced attorneys who can provide you with sound legal advice.

Be Specific When Discussing the Case

When you meet with a bankruptcy lawyer, be specific about your financial situation. Provide them with details about your income, expenses, and debts. The more information they have, the better they can help you. It is important to be honest and upfront about your financial situation. The Law Offices of Robert S. Brandt can help you navigate through the complex legal process of bankruptcy.

Be Prepared to Negotiate

Bankruptcy is not a one-size-fits-all solution. There are different types of bankruptcy, and each one has its own set of requirements. Your bankruptcy lawyer may be able to negotiate with your creditors to come up with a payment plan that works for you. This can help you avoid bankruptcy altogether. However, if bankruptcy is your only option, your lawyer can help you navigate through the process.

List All Debts

It is important to make a list of all your debts, including the amount owed and the creditor. This will help your bankruptcy lawyer determine which debts can be discharged in bankruptcy. It is also important to provide your lawyer with any contracts or agreements related to your debts.

Eliminate Expenses From the Amount

When calculating your debts, be sure to eliminate any expenses that are not necessary. This includes things like luxury items or entertainment expenses. You want to make sure that your lawyer has an accurate picture of your financial situation.

Get Consumer Counseling

Before you can file for bankruptcy, you will need to complete a consumer counseling course. This course will help you understand your options and provide you with financial education. The Law Offices of Robert S. Brandt can help you find a reputable consumer counseling agency in Fairfax VA.

Request a Consultation With Robert S. Brandt, Bankruptcy Lawyer in Fairfax VA

If you are considering bankruptcy, it is important to get in touch with a bankruptcy lawyer as soon as possible. The Law Offices of Robert S. Brandt can provide you with the legal guidance you need to make the right decision for your financial future. Request a consultation with me today to learn more about how I can help you as your bankruptcy lawyer in DC.

Advice for Litigating Your Virginia Warrant of Debt

Warrant of Debt

Experiencing the stress of a lawsuit can be overwhelming if you are not familiar with the legal process. When facing a warrant in debt in Virginia, it is important to understand the steps involved in litigating the case. Here are some tips and advice to help you navigate the process of litigating a warrant of debt.

Start With a Consultation Call

Before doing anything else, it is important to contact an experienced attorney to discuss your case. An attorney can provide valuable advice on the legal process, potential outcomes, and the steps you should take moving forward.

Diligence is Key

Litigating a warrant of debt is a complex process that requires thorough research and preparation. It is important to be organized and keep meticulous records of all communications and documents related to the case.

Keep an Open Mind and Be Flexible

It is important to try to be reasonable when negotiating a settlement with the creditor. Your lawyer can help you understand the creditor’s position and the potential outcomes of a lawsuit.

Provide as Much Detail as Possible

It is important to provide your lawyer with all the details of your case. Be sure to include any documentation or evidence that may be relevant to the case. This will help your lawyer understand the facts and the legal issues involved.

What to Look for in a Lawyer

When litigating your warrant of debt, you want the best legal representation possible. Here are some things to look for in a lawyer when selecting representation for your case:

Experience: Look for an attorney who has experience litigating warrants of debt and is familiar with local court rules and procedures.

Reputation: Ask around and research the lawyer’s reputation in the legal community.

Communication: Make sure the lawyer you select is willing to communicate clearly and regularly with you about the progress of your case.

Cost: Make sure you understand the costs associated with the lawyer’s services and are comfortable with the fee structure.

Let The Law Offices of Robert S. Brandt Litigate Your Warrant of Debt

The Law Offices of Robert S. Brandt are experts in litigating warrants of debt in Northern Virginia and Washington, DC. Our experience and track record of successful cases speak for themselves. We understand the legal process and the potential outcomes of a warrant of debt. We are committed to providing our clients with the best legal representation possible. Request a consultation, and discover how we can help you.