A Guide to Chapter 7 Bankruptcies
Who Can File
Parties in a Bankruptcy
There are many important people to know about in your bankruptcy filing. These people include:
The debtor is the person (or persons or businesses) filing for bankruptcy. These individuals are looking for relief under the bankruptcy code.
This person is chosen by the court to represent your creditors. It is his/her job to review your petition, ensure it is accurate, and also determine if you have any assets that the court can take and sell to pay your creditors. The Trustee interviews you at your Meeting of Creditors (also called a 341). The Trustee has a lot of power; he or she can sell jointly owned property, cancel contracts, and much more.
These are people that the Debtor owes money. They have the right to review your petition and assets. They also have a right to object to your discharge if they believe it is being done in bad faith or you have certain debts that should be considered non-dischargable.
This person represents the Justice Department. The U.S. Trustee has a responsibility to ensure people are properly filing bankruptcy and that cases are appropriate. Most Debtors never deal with the U.S. Trustee, but they do audit random cases to ensure your paperwork is in order, you have all the proper documentation, and you have followed all the rules.
How to Qualify
Virginia law allows you to protect up to $1,000 of the value of clothing. Used clothing have a very low resale value; we use thrift store prices to value clothes. The only issues that usually ever arise are if there are a significant amount of newer designer clothes.
Household Good and Furnishings
Wedding and Engagement Rings
Tenants by the Entirety
Federally-Qualified Retirement Plans
Tools of the Trade
NOTE: The above list of Virginia bankruptcy exemptions is NOT complete or exhaustive list. It includes only the most common exemptions. Additionally, these exemptions may change depending on federal and state law. See an experienced bankruptcy attorney for the most accurate information about exemptions and what exemptions may apply to you.