What is the process for filing for bankruptcy?

In Virginia, the process for filing for bankruptcy is relatively straightforward, but it requires careful consideration, planning, and strategic decisions. It is important to determine whether filing bankruptcy is the best option before beginning the process. The first step is to determine which type of bankruptcy is most appropriate. In Virginia, the two most common types of bankruptcy are Chapter 7 and Chapter 13. Chapter 7 is the liquidation of assets to pay off creditors while Chapter 13 is a structured repayment plan. The next step is to collect all the necessary documents, such as pay stubs, bank statements, tax returns, plus any loans or other debts owed. Once these documents are gathered, it’s time to contact a bankruptcy attorney to determine whether the process should move forward. This is usually done through a free initial consultation. Next, the attorney will help you prepare the necessary forms, determine the applicable filing fees, and file the paperwork with the applicable court. After filing, the court will issue an automatic stay, meaning creditors cannot call or contact you while the bankruptcy is being processed. Finally, after the paperwork is filed, you will be required to attend a creditors’ meeting. At this meeting, you will be asked a variety of questions by the trustee and must answer truthfully. Following the creditors’ meeting, the trustee will review your bankruptcy case and determine whether the proposed repayment plan is satisfactory. After approval, you will no longer be legally responsible for your debts and the process will be complete.

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What is the process for filing for bankruptcy?

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