Looking for a Centreville Bankruptcy Attorney? The experienced legal team at Ashley F. Morgan Law, PC helps hundred of people every year with their debt related issues. Offering free consultations, our attorneys can help determine what options are available to you. Your options often depend on numerous factors, including debt amount, income, type of debt, assets, family size, and much more. We offer free consultations to review your situation.
Chapter 7: The most common type of bankruptcy is a Chapter 7 bankruptcy. This is also called a liquidation. The process usually takes approximately three to four months for a standard case. During this process you file a petition that provides information regarding your income, expenses, debts, assets, and personal information. The bankruptcy process allows you to keep certain items. If you have more than the minimal items, the bankruptcy trustee sells the debtor’s nonexempt assets and uses the proceeds of such assets to pay creditors.
Chapter 13: A chapter 13 bankruptcy is also called a wage earner’s plan. The plan enables individuals with regular income to develop a plan to repay all or part of their debts. Some individuals pay back only required debt, such as priority tax debt and mortgage arrearages, while other individuals pay back 100% of all debts. Under this chapter, debtors propose a repayment plan over three to five years. The plan is based on various factors, including income, non-exempt assets, etc.
Debt Settlements: Sometimes it is ideal to negotiate directly with the creditor. We often recommend this option when an individual has low debts or a couple creditors. This option does not have any guarantees, it can save you save money on the full amount owed. It also can help you avoid bankruptcy for only a couple debts.
To review your options, please contact our office. Our office is located close to Centreville, just up Route 28 in Herndon, Virginia. We offer plenty of free parking.
LIFE IN CENTREVILLE, VIRGINIA
Problems facing individuals in Centreville are different than those in the rest of Virginia. Centreville is a suburb of Washington, D.C. with a population of 74,627. It is located approximately 20 miles west of DC. Living in the Virginia suburbs comes with increased expenses. The high cost of living for this area can be tough on many individuals and families. We understand the financial struggles in Centreville and Fairfax County are different from the rest of the country. For many clients, even if you are making a decent income, the expenses in Centreville can be overwhelming. Make sure to work with a Centreville Bankruptcy Attorney understands the struggles.
Qualifying for Chapter 7 Bankruptcy in Centreville, VA
Filing bankruptcy can sometimes help relieve some of the financial struggles. To qualify for Chapter 7, the court will look at your income for the last 6 months. If the debtor’s income is less than or equal to the state median, they can file for Chapter 7. This can mean it is more difficult for individuals living in the more expensive parts of the state to qualify for a Chapter 7. This is a common problem for many individuals living in Centreville because the median income is based on incomes from all over the state. Living in Centreville is drastically more expensive than living in other parts of Virginia, such as Petersburg or Danville.
Alternative Ways of Qualifying: The Means Test
However, there is another way to qualify for Chapter 7 that involves using your income and subtracting out allowable expenses; this process is called the Means Test. Luckily, if your income is above the state median, we can take in consideration the allowable expenses for your county under Internal Revenue Service guidelines. For clients living in Centerville, we can often use numbers based on cost of living in Fairfax County. Also, we may be able to consider other high costs of living in the area, such as medical expenses, childcare, and similar.
If you have above median income, finding an experienced bankruptcy attorney can make the difference in whether you qualify for Chapter 7 or not. If you do not qualify for Chapter 7 — or determine that you should not file a Chapter 7 — and have to file a Chapter 13, the Means Test will also help dictate the payment plan during the course of your repayment plan. Having an experienced Centreville Bankruptcy Attorney can make the difference in how smoothly your case goes.
WHERE TO FILE BANKRUPTCY IF YOU LIVE IN CENTREVILLE
Bankruptcy is a federal process, which means you file in a federal court. Most people file in the jurisdiction where you reside; if you live in any part of northern Virginia, you will usually file in the Alexandria Division of the Eastern District of Virginia. There are other ways to determine where you can file, such as where your largest asset is located. For example, if you own a house in Centreville, VA but live in Washington, DC, you may still be able to file in the Eastern District of Virginia. However, it is usually easiest to file in the jurisdiction you reside.
Most of our bankruptcy clients never go the bankruptcy courthouse; most cases only have one mandatory appearance at the Meeting of Creditors (or 341 hearing). In Alexandria, this hearing is in an office building in Old Town Alexandria. You must bring your Driver’s License and Social Security Card with you so that the Trustee can verify your identity. Other questions you will be asked are about your petition, including your debts and assets. This is usually a hearing that takes three to five minutes for your questions.
If you have concerns about debt issues, bankruptcy, or similar, schedule an appointment with our office.
Zip Codes in Centreville, Va: 20120, 20121, 20122