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Filing for Chapter 13 bankruptcy in Virginia

Those in Virginia who wish to file for Chapter 13 bankruptcy must meet certain criteria to be eligible for such procedure. Anyone looking to file must have unsecured debts of no more than $383,175 and secured debts of no more than $1,149,525. In addition to that requirement, the debtor must be an individual or a person running an unincorporated business.

Corporations and partnerships are barred from filing under Chapter 13 filing guidelines. Individuals who file for Chapter 13 bankruptcy protection must have completed a credit counseling course within 180 days prior to filing. A certificate proving that the course was completed must be shown to the court when filing. Additionally, no one who has had a bankruptcy case dismissed in the last 180 days due to failure to comply with a court order may file for such protection.

In some instances, the requirement to attend credit counseling may be waived. This determination will be made by the U.S trustee who is overseeing the case, and the waiver will generally only be allowed when there is no approved credit counseling provider in the debtor's geographical area. Should a debt management plan be created during the credit counseling session, it must be filed with the bankruptcy court.

Filing for Chapter 13 bankruptcy can be an effective way to protect property while getting out of debt. A bankruptcy attorney may be able to advise a a client as to whether he or she qualifies and how to proceed. Although unpaid income taxes and child support arrearages are not subject to discharge, a Chapter 13 plan can incorporate these obligations and allow a debtor to pay them over the life of the plan.

Source: U.S. Courts, "Chapter 13 Eligibility", November 05, 2014

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