Virginia Bankruptcy Laws and Virginia Bankruptcy Attorney
Virginia Chapter 7 Bankruptcy Law Chapter 7, otherwise known as "liquidation," is generally the simplest and quickest form of bankruptcy and is available to individuals, married couples, corporations and partnerships. A trustee (appointed by the court) gathers and sells your non-exempt property and uses the proceeds from the sale to pay your creditors. Most chapter 7 cases are "no-asset' case, which simply means that you do not have any non-exempt property for the trustee to sell. Beginning October 17, 2005, new federal Virginia bankruptcy law provide for a "means test" which will determine whether you are eligible to file of Chapter 7 bankruptcy. If your income is below the median income for families in Virginia, based on Census Bureau statistics, you will be eligible. If you make more than the median income for families in Virginia, your income over the past six months is considered, along with mortgage and car payments, back taxes and child support due, and school expenses up to $1,500 per year. You won't be eligible for a Chapter 7 bankruptcy if, after deducting these amounts, and the living expenses provided in the Internal Revenue Service's national collection standards, you can still pay at least $6,000 ($100/month) to unsecured creditors over five years. If you don't qualify for a Chapter 7 bankruptcy, your only option would be a Chapter 13 bankruptcy. The U.S. Trustee Program will apply the median family income data to all cases filed on or after October 1, 2006. This median family income data will be adjusted again in January/February 2007, shortly after the Census Bureau updates the data. For Virginia, the median income for a single wage earner is $45,143; for a family of two, it is $56,975; for three, $67,511; and for four, $77,430. Add $6,300 for each individual in excess of 4. Also beginning October 17, 2005, you must obtain approved credit counseling before you can file bankruptcy. Another new federal bankruptcy requirement is that you must file any overdue tax returns within weeks of filing a Chapter 7 bankruptcy. Planning for filling bankruptcy law
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