Bankruptcy 

What Is A Bankruptcy?

A bankruptcy is a court proceeding in which you request the court to excuse you from your responsibility to repay your creditors.  Bankruptcy allows you to discharge most of your debt, and to keep some of your property.  A special court, called the United States Bankruptcy Court, hears all bankruptcy cases.  Two types of bankruptcy apply to individuals and married couples who are not in business, and they are Chapter 7 and Chapter 13.

 

What Is The Difference Between A Chapter 7 And Chapter 13?

Under a Chapter 7 (straight bankruptcy or also called liquidation), you must list all of your debts, and all of your property.  Some of your property such as a car worth $2000.00 or less may be free from bankruptcy.  Non-exempt property goes to the bankruptcy trustee who will apply it to pay your creditors. The court then discharges (forgives) most or all of your debts. Chapter 13 is for people earning wages and their net disposable income is paid to a bankruptcy trustee, who for a  period of up to five years, pays it to the creditors.

 

LSNV represents eligible clients only in Chapter 7 bankruptcy proceedings.  Those needing a Chapter 13 bankruptcy will have to employ a private attorney.

 

Information About the Debtors' Rights and Bankruptcy Clinic

To determine if you are eligible for representation for a Chapter 7 bankruptcy by LSNV, you must first attend the Debtors' Rights and Bankruptcy Clinic. This clinic is held at least once a month at LSNV's Falls Church office 6066 Leesburg Pike, Suite 500, Falls Church, Virginia 22204. You must have an appointment to attend this clinic, and the appointment times are usually in the afternoon of the day of the clinic at 2:00, 3:00 or 4:00 p.m.  Please call us toll free at (866)534-5243 to schedule an appointment.

 

LSNV's Bankruptcy Program

Prior to the clinic, you are interviewed by a LSNV volunteer for background and financial information. Following this interview, a memorandum of the interview is prepared for a pro bono attorney who then meets in person with you on the day you attend the clinic. After this meeting, the pro bono attorney recommends to LSNV whether you are eligible for a Chapter 7 bankruptcy.

If you are recommended for bankruptcy, you are given an in person appointment with a LSNV attorney. At this point in the process, you are directed to locate, gather and assemble your financial documents and to complete a three-part Bankruptcy Questionnaire (links to the Questionnaire are below.)

Following the review of all of your financial documents and the Questionnaire, the LSNV attorney determines whether LSNV will represent you. If so, you and the attorney sign a Representation Agreement for Chapter 7 Bankruptcy and, after you pay the $320.00 filing fee, the bankruptcy petition is prepared and filed.  

 

 

 

 

 

 

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