Understanding bankruptcy laws in Virginia Beach, like in any other jurisdiction, is crucial if you're considering filing for bankruptcy. Bankruptcy laws are designed to provide individuals and businesses with a legal process to manage overwhelming debt and obtain financial relief. Here's a guide to help you understand bankruptcy lawyers virginia beach:

1. Types of Bankruptcy: In Virginia Beach, as in the rest of the United States, the two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13 bankruptcy.

• Chapter 7 Bankruptcy: This is also known as "liquidation bankruptcy." It involves selling non-exempt assets to pay off your debts and allows for the discharge of most unsecured debts (like credit card debt and medical bills).
• Chapter 13 Bankruptcy: Also called "reorganization bankruptcy," it involves creating a repayment plan to pay off a portion or all of your debts over a three to five-year period. Chapter 13 is often used to save assets like homes from foreclosure.

2. Means Test: Before filing for Chapter 7 bankruptcy near me in Virginia Beach, you'll need to pass a means test to determine your eligibility. The means test compares your income to the median income in Virginia Beach for a household of your size. Assuming your pay is underneath the middle, you might fit the bill for Section 7. Otherwise, you may be required to file for Chapter 13.

3. Exemptions: Virginia has specific bankruptcy exemptions that dictate what property you can keep when filing for bankruptcy lawer near me. These exemptions protect certain assets from being sold to repay creditors. Common exemptions in Virginia include homestead exemptions (protecting your home), vehicle exemptions, and personal property exemptions.

4. Credit Counseling and Debtor Education: Before filing for bankruptcy in Virginia Beach, you must complete two courses: a credit counseling course before filing and a debtor education course after filing. These courses are designed to help you understand your financial situation and make informed decisions.

5. Automatic Stay: Once you file for bankruptcy, an automatic stay goes into effect. This legal order stops most creditors from pursuing debt collection activities, including lawsuits, garnishments, and foreclosure. It provides temporary relief and allows you to work through the bankruptcy process without harassment from creditors.

6. Meeting of Creditors: After filing for bankruptcy, you'll attend a meeting of creditors, also known as a 341 meeting. This meeting allows your creditors to ask questions about your finances and bankruptcy petition, but it is typically straightforward and rarely involves your actual creditors attending.

7. Discharge of Debts: In the event that you document for Section 7 liquidation in the Virginia Ocean side and meet every one of the prerequisites, you might get a release of your qualified obligations, and that implies you are not generally lawfully committed to reimburse them. In Part 13, you might get a release after effectively finishing your reimbursement plan.

8. Bankruptcy's Impact on Your Credit: Bankruptcy will have a negative impact on your credit score, and the record will stay on your credit report for several years. However, it can also provide a fresh start, and with responsible financial management, you can gradually rebuild your credit.

9. Legal Assistance: Given the complexities of bankruptcy laws and the importance of adhering to them correctly, it's highly advisable to consult with a bankruptcy attorney in Virginia Beach. They can help you navigate the process, ensure you meet all legal requirements, and make informed decisions about your financial future.

Remember that bankruptcy laws can change, and the information provided here is based on my knowledge as of September 2021. Always consult with a qualified bankruptcy attorney in Virginia Beach for the most up-to-date and accurate guidance tailored to your specific situation.