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Virginia Bankruptcy Questions & Answers
4 Answers | Asked in Bankruptcy, Consumer Law, Personal Injury and Real Estate Law for Virginia on
Q: Can I sue a firmer creditor for a lien on my new house? Chapter 7 was discharged in 2012.I just bought this home in 2019

I lost 3 refinance loans so far and can’t sell either. I asked them to remove the lien they said 24,000 dollars and they’ll remove it.

W. J. Winterstein Jr.
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W. J. Winterstein Jr.
answered on Jun 1, 2024

With the majority opinions of the US Supreme Court, despite the express wording of Section 506 of the Bankruptcy Code, the secured amount of any "perfected", i.e., validly filed, liens against a debtor's property will survive a bankruptcy discharge. The deficiencies, if any, of... View More

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1 Answer | Asked in Bankruptcy for Virginia on
Q: in a debt relief program and they made me a response letter to send for a lawsuit. they will do no more what do next
James L. Arrasmith
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answered on Mar 16, 2024

If you're in a debt relief program and have received a lawsuit notice, it's important to take this seriously. Sending the response letter provided by the program is a good first step, but it's often not enough to fully address the legal complexities of a lawsuit. If the program has... View More

2 Answers | Asked in Bankruptcy, Consumer Law, Contracts and Personal Injury for Virginia on
Q: Private mail about me was sent to my dad's house (same name) instead of mine, they had my correct address. Can I sue?

It was about a debt that has apparently been turned over to a debt collector. The loan company had my address, and I have never given them my parents address.

I have no idea why it was addressed and sent to him, other than he and I have in the same name. Since it was his name on it, He... View More

James L. Arrasmith
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answered on Feb 24, 2024

Yes, you may have grounds to sue the debt collector for violating the Fair Debt Collection Practices Act (FDCPA). Some key points:

- Debt collectors are prohibited from communicating information about a consumer's debt to third parties without the consumer's consent. This includes...
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2 Answers | Asked in Bankruptcy for Virginia on
Q: I filed for Chapter 7 bankruptcy, would the return I receive from the American Opportunity Credit be protected?

I filed my Chapter 7 bankruptcy in 2023 but the trustee said he would let me know how much or my taxes he will take to pay creditors once I completed my taxes. I have recently filed my 2023 taxes and I was wondering what part of my taxes is automatically protected? Will the amount I received from... View More

James L. Arrasmith
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answered on Feb 4, 2024

The protection of your tax return, including the American Opportunity Credit, in a Chapter 7 bankruptcy depends on various factors and the specific laws in your jurisdiction. Typically, tax refunds, including credits like the American Opportunity Credit, may be considered part of your bankruptcy... View More

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5 Answers | Asked in Bankruptcy for Virginia on
Q: If all my income is Social Security and pension, can I still file chapter 13 in Virginia?

I have too much equity in my home for chapter 7. And I don’t want to lose my home. I am making payments on the mortgage and I’m up-to-date and will be able to remain up-to-date. I own one car with no loan. If I have to file bankruptcy, what are my options?

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on Nov 27, 2023

Your otherwise judgment-proof periodic income should count to make you eligible for Ch. 13 relief.

A Ch. 13 plan needs to provide your creditors with the "indubitable equivalent" of the amount they'd get in a Ch. 7 proceeding, at a minimum. And at least in my PA district,...
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3 Answers | Asked in Bankruptcy and Consumer Law for Virginia on
Q: What would happen If I leave my job and collect social security and a small pension and stop paying all unsecured debt?

65 years old. Live in Virginia. Own home with mortgage and would keep current on payments. Own one car with no loan. No savings.

Would I be judgement proof?

My home equity is $300K. But isn’t a primary residence exempt from unsecured debt creditors?

Martha Warriner Jarrett
Martha Warriner Jarrett pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Nov 26, 2023

Your Social Security and pension are exempt and, depending on where you live, you are eligible to claim a homestead exemption under your state law. Same with your car. If your equity is less than your homestead exemption, you are probably judgment proof. However, that will not keep your creditors... View More

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3 Answers | Asked in Bankruptcy for Virginia on
Q: What happens to an active garnishment once bankruptcy is filed?

I filed for bankruptcy some years ago and I also had garnishment. Once the bankruptcy is filed, does the garnishment stop? And am I still liable for payments even if the bankruptcy is approved?

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on Nov 2, 2023

At the moment you file for bankruptcy relief, regardless of Chapter, an automatic stay against any action against you or your (the Estate's) property is estopped, and usually courts say "of no legal effect".

But the key to what happens thereafter hinges upon whether the...
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1 Answer | Asked in Bankruptcy for Virginia on
Q: Can I file bankruptcy in Colorado?

I spoke to an attorney from New Mexico and he suggested I file bankruptcy in Colorado where I live most of the time. He advised me that it may be possible to file bankruptcy in Colorado under the Homestead Laws for a lien filed from an inaccurate boundary survey judgment. I have questions and need... View More

Bernard S. Via III
Bernard S. Via III
answered on Aug 8, 2023

Your residency is more where you intend to reside as where you actually spend time. There is a legal footprint of your residency. Where you vote, where you keep most of your assets, what you give out as your address, driver's license, car registrations. I think you confuse the issue of where... View More

1 Answer | Asked in Bankruptcy and Civil Litigation for Virginia on
Q: I was served at work by a sheriff for a warrant in debt by my land lord who put my work address down is that illegal

Is it illegal for him to do that at my place of employment without approval from the judge to do so

Timothy Denison
Timothy Denison
answered on Aug 1, 2023

No. It is not illegal.

3 Answers | Asked in Bankruptcy and Immigration Law for Virginia on
Q: How will prior year taxes in repayment affect my spouse's naturalization interview outcome?

I am a U.S. citizen currently in a Ch 13 bankruptcy. My spouse is not included as a debtor. I am the primary listed on the joint returns. We have no unfiled returns. My spouse has a naturalization interview coming up, and we want to know how these taxes in repayment will affect the outcome of the... View More

Bernard S. Via III
Bernard S. Via III
answered on Apr 12, 2023

11USC525 a says "a governmental unit may not deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or other similar grant to, condition such a grant to, discriminate with respect to such a grant against, deny employment to, terminate the employment of, or... View More

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4 Answers | Asked in Bankruptcy for Virginia on
Q: I have unsecured debt (CC) and a secured debt (auto) with same lender. May I reaffirm the secured, dismiss unsecured?

Auto has a few thousand dollars in equity which I think is exempt. I recall there being an issue with both types of loans with the same lender. If so, is it a state law specific to Virginia?

James H. Wilson Jr.
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James H. Wilson Jr.
answered on Feb 15, 2023

It depends on the type of lender. Credit unions have greater rights than banks. Most credit unions have a cross-collateralization clause in their loan agreements. That makes any debt owed the credit union secured by collateral given on any other debt, so the credit union may not release the... View More

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2 Answers | Asked in Bankruptcy for Virginia on
Q: I'm a 61yr. Old widow and have never filled bankruptcy. But I believe I'm going to have to. How much is it .

Can you make payments on this

Robert R Weed
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Robert R Weed
answered on Jan 3, 2023

Most lawyers charge around $1500 for a simple case. There's filing fees and a required class so the totals my be around $1850.

Many lawyers will work with you on payments.

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2 Answers | Asked in Bankruptcy, Consumer Law, Contracts and Collections for Virginia on
Q: Is there a statute of limitations on credit card debt?

I was contacted by a law group saying I owed on an old credit card debt. They're saying the last time they tried to contact me was 2016 from a card I obtained before 2010. It was a JCPenny store card. They're threatening garnishment. I paid off all my debts before I purchased my home in... View More

James H. Wilson Jr.
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James H. Wilson Jr.
answered on Dec 9, 2022

Credit card lawsuits typically involve two different jurisdictions - the issuer's home state and the borrower's home state, and the shorter of the two may apply in Virginia. In Virginia Code Section 8.01- 232, there are three conditions on the enforceability of a waiver of the right to... View More

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2 Answers | Asked in Bankruptcy for Virginia on
Q: Can my auto loan be placed as a charge off while in Chapter 13 by the creditors?

Voluntary dismissal after 2+ years in plan. Tried to restablish payment plan for auto loan. They claim I fell further behind after I filed because they didn't receive timely plan payments from the trustee and charged it off. Now they are threatening repossession and say I am 9 months more... View More

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on Nov 14, 2022

A "charge-off" of a loan by the financial institution is often misconstrued. It in no way affects the borrower's legal obligation to repay the debt; it is only an in-house accounting entry and loan classification that affects the bank's capital/lending limits and is usually... View More

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1 Answer | Asked in Bankruptcy for Virginia on
Q: My only income is worker's compensation. In VA, is my comp income and everything obtained with it exempt in bankruptcy?

Is exemption granted by VA Code Ann. 65.2-531? I have been receiving workers comp for many years and everything I have has been purchased with this income.

Daniel Staeven
Daniel Staeven
answered on Nov 3, 2022

Yes, your earnings obtained through Workers' Compensation are exempt from execution by creditors based on the statute you reference. Since the Commonwealth of Virginia does not allow its citizens to use the federal exemptions, the benefit is clear that Virginia's protection of... View More

1 Answer | Asked in Bankruptcy for Virginia on
Q: Monthly repayment amount determined by form 122C-2 or through schedules I/J in CH 13? I am above the median income in VA

I am married but filing by myself. I just wanted to know if schedules I/J are used or form 122C-2 (using local and national standards) should be used to determine repayment plan. I want to compare to what my lawyer proposed to make sure I am getting sound advice.

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on Oct 31, 2022

Both are used by Ch. 13 Trustees in my PA district, as guidelines, but the "bottom line" amount which your plan must propose to be confirmed is the net fair market value of the property/assets you propose to retain. There is a Bankruptcy Code provision that requires that a Ch. 13 plan... View More

1 Answer | Asked in Foreclosure and Bankruptcy for Virginia on
Q: Which Virginia court handles foreclosure excess proceeds disbursements?
James H. Wilson Jr.
PREMIUM
James H. Wilson Jr.
answered on Oct 23, 2022

Fiduciaries in Virginia must file accountings and reports with the Commissioner of Accounts for the city or county involved. If a foreclosure auction results in a surplus of proceeds, most substitute trustees would file an interpleader action in the Circuit Court and name all interested parties as... View More

2 Answers | Asked in Foreclosure and Bankruptcy for Virginia on
Q: Which Virginia court handles foreclosure excess proceeds disbursements?
Mark Oakley
Mark Oakley
answered on Oct 23, 2022

The same court where the foreclosure action was docketed and proceeded to auction and ratification of the sale. That would be the circuit court in the jurisdiction where the property is located. As this is a Virginia matter and you posted this question on a Maryland legal forum, you should consult... View More

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1 Answer | Asked in Divorce and Bankruptcy for Virginia on
Q: 2015 my ex was ordered to pay $5K in equitable distribution, but he never paid and was contempt. He since filed Ch. 7.

He filed Ch. 7 in 2017. We live in VA. Can I take him back to court to enforce the order in the divorce decree?

James H. Wilson Jr.
PREMIUM
James H. Wilson Jr.
answered on Oct 5, 2022

A contempt proceeding for an ED violation may or may not be a violation of the automatic stay in bankruptcy. The question is whether the purpose of the proceeding is to extract a private monetary remedy (not allowed) or to uphold the dignity of the court (allowed). Some have cast this as civil v.... View More

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