Bankruptcy Bankruptcy is never an easy option for anyone. Sometimes, an unforeseen event, such as an accident, illness, or layoffs occurs, and before you know it, your debts are too much to handle. Bankruptcy can be a very complex practice area, fraught with difficult decisions that requires careful planning and strategy. CCWV's bankruptcy attorney has been representing parties in the US Bankruptcy Courts in Virginia, Maryland and the District of Columbia for over a decade and is able to assist you with virtually all of your bankruptcy needs. He carefully analyzes each client's situation so that he can recommend an analytical, cost-effective, and individually-crafted approach to maximize each client's rights under the US Bankruptcy Code. Chapter 7 Liquidation A bankruptcy filed under Chapter 7 of the Bankruptcy Code is essentially a "liquidation" of an individual's estate and a complete discharge from all of the individual's debts, with some exceptions. CCWV is capable of steering you through the bankruptcy maze so that you can start your financial life over with a clean slate. Chapter 7 bankruptcy is not simple, easy, or even the right choice for some clients. For instance, certain debts are non-dischargeable (meaning it cannot be wiped out) in a Chapter 7 bankruptcy, such as taxes, child support, spousal support, property support obligations incurred through divorce (with exceptions), debts incurred through fraud, debts resulting from "willfully and maliciously" inflicted injuries, student loans (under most circumstances), and others. A Chapter 7 bankruptcy often requires one to surrender property as a condition to receiving discharge. However, under Virginia law, one is allowed to retain certain types of property, up to a certain post-bankruptcy value. In addition, sometimes the Chapter 7 Trustee will "abandon" property due to the cost of taking control, maintaining, and liquidating certain properties (such as houses). Finally, if a creditor is secured by property (e.g. a house or automobile), they can recover their property unless you agree to "reaffirm" your debt to them. Chapter 13 "Wage Earner" Bankruptcy A Chapter 13 bankruptcy is entirely different from a Chapter 7 liquidation. In a Chapter 13 bankruptcy, the debtor agrees to pay back a portion of his debts over time, usually between three to five years. Chapter 13 bankruptcy offers numerous advantages to debtors - such as a the ability to stay in possession of secured property and broader discharge from certain debts that are non-dischargeable in a Chapter 7 bankruptcy. A Chapter 13 bankruptcy requires steady income, patience, and careful planning. The Chapter 13 bankruptcy process is not easy. Our attorneys must carefully analyze your assets, income, and debts. Next, we must devise a Chapter 13 Plan explaining the debts to be paid, how they will be paid, the length of time for repayment, the disposition of certain property, and other issues. The proposed Plan is then subject to objections from creditors and the Chapter 13 Trustee for a period of time. If everything proceeds smoothly, the Plan must ultimately be approved by the US Bankruptcy Court. After the Plan is approved, the debtor must make a monthly payment to the Chapter 13 Trustee, who then disburses the funds to the various creditors until the Plan is completed.
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