How to Qualify for Filing Chapter 7 Bankruptcy in Virginia

Filing Chapter 7 bankruptcy isn’t something you want to do lightly. There are a number of steps you need to take before filing, and you must first determine whether you qualify for filing Chapter 7. This is done through a means test, among other steps. Here’s how to know whether you qualify for filing Chapter 7 and how an experienced lawyer in Virginia can help you through this process.

The Virginia Bankruptcy Means Test

To qualify for Chapter 7 bankruptcy in Virginia, you must meet certain financial eligibility requirements. The most important of these requirements is that you must have enough income to cover your monthly expenses. If you cannot afford to pay your bills, you will not be able to file for bankruptcy in Virginia.

This means test will determine whether you are able to repay your debts in a reasonable amount of time, based on your income. If your income falls below the Virginia median for your current household size, you will be exempt from the means test, and qualify for filing Chapter y.

The Means Test Exemptions

There are a number of factors that can exempt you from the Virginia Bankruptcy Means Test. The first is if your debts are not primarily consumer debts, you are exempt. You don’t need to take the means test if you are a disabled veteran and have incurred debt mostly during your active duty or while performing activities in the service of homeland defense.

The Virginia Median Income

If you do not qualify for the Virginia Bankruptcy Means Test, your income is below the median income for your household size. This is determined by your average monthly income calculated over the past six calendar months. If your income has declined over the past six months, but you are over the limit, it’s possible to wait another month or so for your income to move below the Virginia median. The final step is to multiply your average monthly income by 12 for the test. Based on your household size, these are the median Virginia incomes:

1 – $51,817.00

2 – $65,510.00

3 – $75,774.00

4 – $90,945.00

5 – $99,045.00

6  – $107,145.00

7 – $115,245.00

8 – $123,345.00

9 – $131,445.00

10 – $139,545.00

The Means Test

To complete the means test, you must calculate income and expenses, and subtract all allowed expenses for Virginia from the total income amount. This will be the income amount under bankruptcy available to pay unsecured creditors.

Filing Chapter 7 With the Help of The Law Office of Robert S. Brandt

While you may be able to file Chapter 7 bankruptcy, it’s not always recommended to do so. The Law Office of Robert S. Brandt can help you understand your options and determine whether bankruptcy is the best option for you. If you qualify, our experienced lawyers can guide you through the bankruptcy process and help you to emerge from it with your finances in better shape. Contact us today to request a consultation.

What is the Statute of Limitations on Debt in Virginia?

If you’re receiving collection calls or letters from creditors looking for unpaid debt, the statute of limitations in Virginia is something you should be aware of. A statute of limitations on debt limits the time period for which a creditor or collections agency can file a lawsuit to collect an outstanding debt. However, if the age of the debt is past the statute of limitations, you might not need to pay it back at all. Here’s what you need to know and how a debt relief agency can advise you when it comes to your debt.

Statute of Limitations

A statute of limitations is a time limit within which a creditor or collections agency can file a lawsuit to collect an outstanding debt. In Virginia, the statute of limitations is three to five years for most debts. There are a few exceptions to this rule, and specific statutes of limitations for specific debts:

  • Credit Cards: 5 years
  • Mortgages: 5 years
  • Oral Debts: 3 years
  • Auto Loans: 4 years
  • Medical Debts: 5 years
  • State Tax Debts: 7 years

While the statute of limitations expires, a debt collector is prohibited from security recovery by means of a court judgment. They can still attempt to recover an old debt and might continue to use a variety of other collection methods, but they cannot go to court to get a judgment for the full amount of the debt.

Debt Collection Protections

While creditors can still try to collect an old debt, debtors are shielded in Virginia from malicious and harassing debt collectors. This means that collectors cannot engage in any kind of extortion, such as threatening to sue if payment is not made immediately. Collectors can, however, contact you about the debt if you have not responded to their previous communication.

If you’re feeling harassed by a debt collector, or if you believe that your debt is not valid, consider talking to a debt relief agency. They can provide you with advice on how to deal with your debt and protect your rights.

You are protected by the Fair Debt Collection Practice Act (FDCPA), meaning there are rules for credit collectors. These will protect you from false, annoying, and abusive tactics.

If You Receive a Collection Letter

You should always review whether the collection letter is legal. Debt collectors are not allowed to duplicate legal documents for debt collection in Virginia. They can send you a letter about the debt owed, but it cannot include threats of legal action, legal demands for money, or any other threats.

Get Advice from a Debt Relief Agency Like the Law Office of Robert S. Brandt

If you are being harassed about an old debt and think the statute of limitations has expired, it’s best to confirm with a debt relief agency. At The Law Office of Robert S. Brandt, we have years of experience helping people with debt problems. We can provide you with advice on how to deal with your debt and protect your rights. Contact us today to make a consultation request.