Legal Question in Bankruptcy in Virginia

File Chapter 7 if Unemployed?

Please help me understand the new bankruptcy laws in VA. I am unemployed and have been since November I am unable to pay the basics(Rent, phone, electric) I have had to move in with a family member for help. If you have no income do you still have to go to a credit counselor and pay for the services? Can judgements and garnishments be dismissed in Chapter 7? How long from the first meeting with the counselor until the bankruptcy is dismissed?


Asked on 3/16/06, 12:18 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: File Chapter 7 if Unemployed?

All individuals filing for bankruptcy have to do credit counseling before filing, and a debtor education course after. The providers are supposed to do them pro bono in circumstances that warrant. As for the relief available in Chapter 7, in general lawsuits are stopped, judgments can no longer be enforced unless they attach as a lien on property, and garnishments will stop. There are exceptions for certain types of debts (child/spousal support, certain taxes, debt incurred through fraud, etc.). As for timing, a debtor must do counseling within 6 months before filing bankruptcy. A bankruptcy is usually discharged (not dismissed - you don't want that) 3-4 months after filing. A DEBT COUNSELOR CANNOT GIVE YOU LEGAL ADVICE, AND YOU SHOULD NOT TAKE THAT PERSON'S ADVICE ABOUT FILING BANKRUPTCY. SEE A BANKRUPTCY LAWYER.

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Answered on 3/16/06, 12:42 pm


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