How to File for Virginia Bankruptcy

Filing for bankruptcy in Virginia follows the same procedures as filing for bankruptcy anywhere else in the United States. If you're hoping to use Chapter 7 bankruptcy protection, however, you'll need to pass a Virginia-specific income test. Read on to learn how to file for Virginia bankruptcy.
Disclaimer

The content in this page is not a substitute for professional financial advice. Please contact your financial adviser before using the information presented here.

Court to Court

This video by the Federal Judicial Center's Federal Judicial TV program provides a look inside the operations of the Western District of Virginia bankruptcy court's divisional office in Harrisonburg, Virginia. The video is a segment of the video magazine ''Court to Court''. the target audience for the video consists of federal judicial employees.

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Introduction
- All bankruptcy cases are heard in federal courts, so you'll need to begin your filing process in the U.S> District court that oversees your county in Virginia. There are some Virginia-specific issues, however, such as the income levels needed to satisfy the Chapter 7 means test and the list of assets you are permitted to keep after declaring bankruptcy.
Step 1: What is Chapter 7 Bankruptcy
- Under Chapter 7 of the U.S. Bankruptcy Code all of your non-exempt assets are sold and the proceeds are used to settle all qualified debts. The balance of the debts are forgiven. In many cases, most of your assets can be categorized as exempt, so there is no property to be sold.Bankruptcy Home: About Chapter 7 Bankruptcy Which assets are exempt in a Virginia bankruptcy are determined by Virginia law.
Step 2: Chapter 7 Virginia Means Test
- If you have a family income less than the Census Bureau determined median income for similarly sized families in Virginia, you will pass the Chapter 7 bankruptcy means test.
1. Single individual: $49,689http://research.lawyers.com/Virginia/Bankruptcy-in-Virginia.html
2. Two person family: $65,342http://research.lawyers.com/Virginia/Bankruptcy-in-Virginia.html
3. Three person family: $73,191http://research.lawyers.com/Virginia/Bankruptcy-in-Virginia.html
4. Four person family: $85,769. Add $6,900 for each individual in excess of 4.http://research.lawyers.com/Virginia/Bankruptcy-in-Virginia.html
Step 3: Virginia Bankruptcy Exempt Assets

In Virginia you can choose to take either the federal exemptions, or you can elect to use Virginia law to determine which assets are exempt from seizure to settle your debts. The decision can be complicated, and should be made with the help of an attorney.
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