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Bankruptcy is a federal legal process that helps individuals overwhelmed by debt get financial relief. Depending on whether you file Chapter 7 or Chapter 13, the process involves submitting financial documents, attending a creditor meeting, and receiving a court determination. Virginia's exemption laws also affect what property you can keep. Debt has a way of piling up faster than most people expect. A medical emergency, a job loss, a divorce—any one of these can turn a manageable financial situation into an overwhelming one. If you're at the point where you're researching what bankruptcy is and what it actually involves, you're not alone, and you're not out of options. Bankruptcy is a legal process designed to give people a fresh financial start when debt becomes unmanageable. It's governed by federal law, but how it plays out in Virginia can be shaped by the state's own exemption rules. Understanding the process—step by step—can help you make a more informed decision about whether it's the right path for you. more What Is Bankruptcy, Exactly? Bankruptcy is a federal court process that allows individuals and businesses to address debts they can no longer repay. When you file for bankruptcy, an automatic stay goes into effect immediately. That means most collection efforts, wage garnishments, and creditor calls must stop while your case is pending. There are several types of bankruptcy, but for individuals, the two most common are Chapter 7 and Chapter 13. Chapter 7 vs. Chapter 13: What's the Difference? Chapter 7 is often called "liquidation bankruptcy." A court-appointed trustee reviews your assets and may sell non-exempt property to repay creditors. The process typically takes three to six months. To qualify, you must pass a means test, which compares your income to Virginia's median income level. Chapter 13 is a reorganization bankruptcy. Rather than liquidating assets, you propose a three- to five-year repayment plan to pay back some or all of your debts. Chapter 13 can be a better fit for people with regular income who want to keep assets—like a home—that might otherwise be at risk. The right choice depends on your income, the types of debt you have, and what assets you're trying to protect. How Virginia's Exemption Laws Affect Your Case Bankruptcy law is federal, but Virginia sets its own rules about what property you can keep during the process. These are called exemptions, and they matter significantly. Virginia exemptions include protections for certain amounts of home equity (the homestead exemption), personal property, retirement accounts, and more. However, Virginia's exemptions are considered relatively limited compared to some other states. This makes it especially important to understand what you may be able to protect before filing. A bankruptcy attorney familiar with Virginia law can help you identify which exemptions apply to your specific situation. The Bankruptcy Filing Process: Step by Step Step 1: Gather Your Financial Documents Before filing, you'll need to compile a detailed picture of your finances. This includes: A list of all creditors and the amounts owed Recent tax returns and pay stubs Bank account statements A list of your assets and monthly expenses Accuracy matters here. Incomplete or incorrect filings can delay the process or create legal complications. Step 2: Complete Credit Counseling Federal law requires that you complete an approved credit counseling course within 180 days before filing. The counseling session typically takes one to two hours and can be done online or by phone. You'll receive a certificate of completion that must be filed with your case. Step 3: File Your Petition You'll file your bankruptcy petition and supporting documents with the federal bankruptcy court serving your area. In Virginia, cases are handled through the Eastern or Western District of Virginia, depending on where you live. Filing triggers the automatic stay, which immediately halts most collection actions. There is a filing fee—currently $338 for Chapter 7 and $313 for Chapter 13—though fee waivers may be available for those who qualify based on income. Step 4: Attend the Meeting of Creditors Roughly 21 to 40 days after filing, you'll attend what's called a 341 meeting, or meeting of creditors. Despite the name, creditors rarely appear. The bankruptcy trustee will ask you questions under oath about your financial situation and the documents you submitted. This meeting typically lasts only a few minutes. Step 5: Complete a Debtor Education Course After filing, you must complete a second course—a debtor education course—before your case can be closed. This course focuses on budgeting and financial management going forward. Step 6: Receive Your Discharge or Repayment Plan Approval In a Chapter 7 case, if everything proceeds without objection, you'll receive a discharge order that legally eliminates eligible debts. In a Chapter 13 case, the court will confirm your repayment plan, and you'll begin making monthly payments to the trustee. Not all debts can be discharged. Student loans, certain taxes, alimony, and child support typically survive bankruptcy. Do You Need a Lawyer to File for Bankruptcy? Legally speaking, you do not need a lawyer to file for bankruptcy. This is called filing "pro se." However, bankruptcy involves complex federal rules, strict deadlines, and detailed paperwork. A mistake in your filing can result in your case being dismissed, assets being lost, or debts not being discharged as expected. Most bankruptcy attorneys and legal organizations strongly recommend working with a qualified attorney, especially if you have significant assets, own a home, or have complex debts. The question of whether you need a lawyer to file for bankruptcy often comes down to how much is at stake and how confident you are navigating federal court procedures on your own. An experienced bankruptcy attorney can evaluate whether bankruptcy is appropriate for your situation, help you choose the right chapter, ensure your exemptions are correctly applied, and guide you through each stage of the process. Talk to a Virginia Bankruptcy Attorney Before You Decide Choosing to file for bankruptcy is not a decision to make lightly. The process has real, lasting effects on your credit and financial life. At the same time, for many people, it offers a legitimate legal path out of a genuinely difficult situation. If you're considering bankruptcy in Virginia and want to understand your options clearly before making any decisions, the attorneys at Manassas Law Group are available to help. A confidential consultation can give you a clearer picture of what bankruptcy would mean for your specific circumstances and whether it's the right move for you. Contact Manassas Law Group today to schedule a confidential consultation and discuss your financial situation with an experienced Virginia attorney. Frequently Asked Questions About Bankruptcy in Virginia What does bankruptcy actually do to your debt? Bankruptcy can eliminate certain types of unsecured debt, such as credit card balances and medical bills, depending on the chapter you file. However, not all debts are dischargeable. Obligations like student loans, child support, alimony, and most tax debts typically remain after bankruptcy. How long does the bankruptcy process take in Virginia? Chapter 7 cases typically take three to six months from filing to discharge. Chapter 13 cases last three to five years, reflecting the length of the court-approved repayment plan. Will bankruptcy stop creditor calls and collection actions? Yes. When you file for bankruptcy, an automatic stay takes effect immediately. Manassas Law Group explains that this stay legally requires most creditors to halt collection efforts, lawsuits, and wage garnishments while your case is active. Do I need a lawyer to file for bankruptcy in Virginia? Filing without an attorney is legally permitted, but it carries significant risk. Bankruptcy involves detailed paperwork, strict deadlines, and federal court procedures. Many individuals who file without legal guidance make errors that affect the outcome of their case. Consulting with a bankruptcy attorney before filing is strongly advisable. How does filing for bankruptcy affect your credit score? A bankruptcy filing appears on your credit report and can remain there for seven to ten years, depending on the chapter filed. That said, many individuals find that their credit begins to recover with responsible financial habits over time.

Many people find it shocking that the Internal Revenue Service (IRS) can take money directly from their bank account. However, it is a legal and sometimes necessary procedure that the government uses to collect owed tax dollars. This is called an IRS bank levy. The IRS is a government agency that is responsible for collecting taxes and enforcing tax laws in the United States. If a taxpayer does not pay their back taxes after receiving notices and inquiries, the IRS may need to take measures into their own hands. As such, they may seize the money from your bank account to satisfy the tax debt you owe. The IRS only turns to this extreme measure as a last resort. However, if it comes down to it and you receive a notice that the IRS plans to levy your account, you must act fast. Here at The Manassas Law Group, we can help prevent the IRS from taking money from your account. We encourage you to speak with our qualified Manassas bankruptcy attorneys as soon as possible to identify your legal needs and begin developing a legal strategy. What is an IRS bank levy? So by now you know that the government can, in fact, seize money from your account. They do this by use of a tax levy. A levy is defined as the seizure of property or assets by the IRS to fulfill a tax debt. This means that not only can they seize money from your bank account, but they can also take and sell your property. Though it is possible for the IRS to levy physical property and sell it to repay your back taxes, they are more likely to garnish wages or levy bank accounts. This is because the seizure of property and assets isn’t nearly as cost effective as taking money straight from your account. How does the IRS levy a bank account? So how exactly does the IRS levy your bank account? Before they are able to deduct from your account, the IRS will need to have sent multiple notices alerting you of your debt. Once you receive these notices, you will receive a grace period. During this grace period, you will receive information for how to resolve the issue with the IRS before they move on to levying your account. After several unsuccessful attempts at reaching you and collecting your overdue taxes, the IRS will issue a notice with their intent to levy. This notice is what is called the Final Notice of Intent to Levy and Notice of Your Right to A Hearing. Once they issue the notice of intent, you will receive an additional 30 days to resolve your debt with the IRS before they go through with seizing the money from your account. One way they go about this is by tracing your bank details from previous tax returns. They also might track down your account by scanning accounts linked to your social security number. Once they locate your account, they will contact your bank and request that they freeze your funds for 21 days. This temporary, 21-day hold doesn’t remove any money from your account, but instead prohibits you from accessing it. It grants you a small amount of time to resolve ownership issues concerning the account, if any. What assets can the IRS legally seize to satisfy tax debts? The IRS can legally seize just about any asset of yours that has value and can be resold for cash. Whatever you do not need for your own basic survival or shelter, the IRS is able to seize. This might be anything from fine jewelry to a car or a boat to real property, like your home. Some more eligible assets for seizure or garnishing include second or vacation homes, retirement accounts, life insurance policies, social security benefits, and more. Once the IRS seizes your physical assets, you generally have no way to reclaim them. The items will sell relatively quickly, as the IRS wants to satisfy the debt you owe as fast as possible. Most often, this is done through a public auction. The money raised from the sale of your assets will go toward your tax debt. What happens if the IRS wants more details about your bank accounts? There are situations in which the IRS might want more details about your bank account. They may want to learn more about some of your transactions. Observing this information might alert them to assets you could use to pay off your debt. If the IRS is seeking more information about your account, the first thing they would do is ask you for these records directly. If you refuse to supply the information or fail to reply at all, they may summon the records straight from your bank. Your bank must comply with these summons. How many times can the IRS levy your bank account? There is not a limit placed on the IRS for how many times they can levy your account. It is likely that they will continue to levy funds until you make an arrangement to pay back your owed taxes. However, it is worth noting that the IRS has a 10-year statute of limitations for collecting debts. So once that 10 years is up, they cannot continue taking money out of your account or wages. It is also important to note that this is not a standing levy, meaning it won’t stay in effect permanently. That way, you can deposit money the day after receiving a notice of intent to levy without it being automatically frozen in your account. A levy attaches to funds once the bank processes it. If the IRS attempts to issue another levy, it will take some time for the bank to actually process and return it. How long does it take to remove a levy or wage garnishment? When the IRS levies your bank account or garnishes your wages, you have ways to remove these measures. By paying off your back taxes or setting up an agreement with the IRS, you may be able to get the IRS to remove the levy. If you establish a payment agreement, the IRS will likely release the levy immediately. That is, unless, you haven’t already gotten a payment extension. Generally, the IRS will give you 60 days to pay off the balance or reach some kind of payment agreement. However, if you request an extension, you may receive an additional 120 days to pay off the balance. If they grant you the extension, you can also ask to have the levy release the levy or garnishment. Simply put, you are able to remove a levy or wage garnishment in as much time as it takes to call the IRS and request a payment extension. Call The Manassas Law Group Today The Manassas Law Group has been helping people in Manassas and other parts of Virginia for decades. Our attorneys are knowledgeable about matters such as an IRS bank levy or wage garnishments. If you have questions about levies and what all the IRS is able to do to satisfy your tax debt, call our Manassas bankruptcy attorneys today. You can reach us at 703-361-8246 or visit our website to arrange your consultation.

Many people are surprised to hear that they can file for bankruptcy more than once. Some people even file for bankruptcy many times. There are so many misconceptions about bankruptcy. It’s a tricky subject full of technicalities. Nobody ever wants to find themselves needing to declare it. But for many people, it’s the best option. Sometimes, it will be the best course of action more than once. So just how often can you file for bankruptcy? We break down the specifics below. The Manassas Law Group helps many people file for bankruptcy. If you are considering filing for bankruptcy or have questions about the process, you’ve found the right law firm. When should you file for bankruptcy? You should file for bankruptcy if you have: An overwhelming amount of debt. Creditors and bill collectors harassing you daily Missed mortgage payments with threats of foreclosure hanging over you Run out of options and can’t get ahead no matter what you do. These are all signs that it might be time for you to file for bankruptcy in Virginia. However, this is still not a step to take lightly. It sometimes comes with a price. Filing for bankruptcy can harm your credit score in the long run. It might make it hard to borrow money or take out loans in the future. Additionally, it could dramatically increase the premiums you’ll need to pay for insurance. In some cases, it might affect your ability to get a job. Even though it can help relieve some of your debts, filing bankruptcy should not be something you jump straight into. It should be a last resort. If you feel like you’ve already reached your last resort, the Manassas Law Group can help you. Our team makes this process as easy and as possible for you and your family. We want to help you get back on your feet. We will do whatever it takes to get you there. What are the types of bankruptcy? There are six types of bankruptcy. These are known as Chapters. They all have the goal of clearing debt. There are six Chapters of bankruptcy: Chapter 7, 9, 11, 12, 13, and 15. Here, we focus mostly on Chapter 7 and Chapter 13. This is because they are the most common for families and individuals. Before that, here is a brief summary of the other types of bankruptcy. Chapter 9 This is a payment plan. It allows entities to reorganize and repay what they owe. Usually these types of entities are towns, cities, or school districts. Chapter 11 Usually this type of bankruptcy is used to help reorganize a business or organization. The filing entity will need to produce a plan for their intentions to operate the company while still paying off their debt. Chapter 12 This is specific to family farmers or fishermen. It allows them the opportunity to avoid selling assets or foreclosing on their property or home. Chapter 15 This is for international issues. It allows foreign debtors access to bankruptcy courts in the United States. Bankruptcy for families and individuals Chapter 7 bankruptcy This is the most common type of bankruptcy for individuals. It’s also known as liquidation or straight bankruptcy. It allows a trustee appointed by the court to administer the sale of your assets. Anything you own that is considered valuable could be sold to pay off your debts. The courts might excuse necessities like your house, car, or retirement accounts. But be warned that there is no guarantee. After the trustee liquidates your assets, your other debts are forgiven. This will include things like medical and credit card bills. Things like student loans or taxes are not exempt. You will need to pay these off eventually. This type of bankruptcy is only available to those whom the court decides cannot make enough money to return their debt. Eligibility is determined by a means test. The test takes into account your income versus the state average income. They compare the two and decide if you have enough income to pay back most or some of what you owe. If they determine that you do not have enough, you will qualify for this type of bankruptcy. Chapter 7 bankruptcy does not stop the foreclosure. However, it can delay it. This process usually lasts between 3 and 6 months. Chapter 13 bankruptcy Chapter 13 restructures your debt, rather than forgiving it. It allows you to keep your assets and permits you some time to get caught up in repaying debts. Next, the court constructs payment plans. Usually they are monthly and allow you to pay back portions of your debt over a period of time. In addition to organizing your payment plans, the court also requires you to stick to a strict budget. They will check your spending to make sure you are keeping on track. This type of bankruptcy is available to anyone with an unsecured debt below $250,000 and a secured debt below $750,000. You are required to be up to date on your tax filings. Chapter 13 might help stop a foreclosure. This is because it gives you more time and a plan for how to pay your housing bills. The process usually takes 3-5 years to complete. How Many Times Can You File Bankruptcy? The Chapter of bankruptcy you choose affects the amount of time in which you’re able to file again. There is no lifetime limit to how many times you can file. However, there is a limit on how often your debts can be discharged. If you file Chapter 7, you must wait 8 years before filing again. It remains on your credit report for ten years. Chapter 13 bankruptcy remains on your report for seven years. You have to wait two years to file this type of bankruptcy again. If you first file a Chapter 7, and want to file for Chapter 13, you must wait at least four years. In the opposite scenario (Chapter 13 to Chapter 7), there is a six year waiting period. However, if you repay your debts completely during a Chapter 13 claim, you will be exempt from the waiting period. Courts sometimes waive waiting periods if you paid off at least 70% of your Chapter 13 claims. Contact the Manassas Law Group If you are considering filing for bankruptcy, trust the passionate, experienced attorneys at Manassas Law Group. You do not need to suffer in silence through the stress of debt pressure. Our firm combines a profound knowledge of bankruptcy law with aggressive legal strategy. We give each client individualized, compassionate service. Request a free consultation online or by calling 703-361-8246.

In these tough economic times, it’s not difficult to run into serious financial problems. Without expecting it, life circumstances such as job loss or reduced pay, a health crisis, rising utility costs, property catastrophes, divorce and more can render you unable to pay your bills. Even when you’ve budgeted carefully but your income doesn’t increase, inflation alone can make paying your bills challenging. As you shuffle past due notices, deciding what bills you can or cannot pay each month, you’re regrettably faced with the undeniable truth that it’s impossible to catch up. Now you’re facing financial catastrophe. In this situation, you fear that the following crises may occur, or they have already happened. This includes: Home foreclosure Car repossession Utility shut off Eviction Wage garnishment Creditor harassment Poor credit score Damaged reputation Bankruptcy offers overwhelmed debtors a fresh start through Chapter 7, Chapter 13 and Chapter 11 (primarily for businesses) restructuring, reorganizing of assets and payment of debts. However, Virginia makes bankruptcy proceedings and processes extremely complicated. Most require legal expertise for effective resolution of debt obligations. That’s where a Manassas bankruptcy attorney can intervene and guide you toward financial peace of mind. The Bankruptcy Solution Options and Differences—How to Assess Which One is Right for You Chapter 7 Bankruptcy in Virginia Depending on how much money you and your family make, you may qualify for Chapter 7 relief. For most people filing for Chapter 7 bankruptcy, they do not lose any of their assets.  Exemption laws allow you allows you to retain some assets identified by bankruptcy law as “necessities of modern life” such as motor vehicles, clothing, household goods, appliances and furnishings, pensions, professional tools or equipment, public assistance benefits, and unemployment compensation.  Exemption law is a complicated area that a Manassas Law bankruptcy attorney can explain and assist you through the process. Once you've completed the Chapter 7 bankruptcy, you are permanently released from further debt obligations. Chapter 13 Bankruptcy in Virginia In this case, the judge structures a repayment plan that assures creditors that your debts will be paid, in part or in whole. Because you have the income to pay non-exempt debts, foreclosures and repossessions are halted in exchange for your scheduled, contractual promise to payments. The downside of Chapter 13 is that to retain your exempt property and assets, but you must pay your unsecured creditors as specified by the repayment plan regularly and on time to avoid repossessions and/or foreclosures of secured debt, such as mortgages and car loans. If you fail to make payments on time, repossessions and/or foreclosures will proceed. Chapter 11 Bankruptcy in Virginia This form of bankruptcy is primarily for the purpose of helping corporations, partnerships and limited liability companies (LLC) reorganize their business affairs, income, expenses and debts and still retain profits. As this process mandates, the business pays creditors through a debt repayment plan while continuing to operate. After you have completely paid all unsecured creditor payments, any other debts are permanently discharged. A Chapter 11 bankruptcy is the most complex, costly and lengthy of all bankruptcy proceedings. Therefore, debt management alternatives should be carefully analyzed and explored to determine if it is the best option for a business. Bankruptcy Summary ▪ Chapter 7 bankruptcy is for debtors with insufficient income to pay their debts. ▪ Chapter 13 bankruptcy is for debtors with sufficient income to pay debts who want to retain the non-exempt property. ▪ Chapter 11 bankruptcy is for businesses that want to retain profits and continue to operate while paying creditors. If debt worry consumes you so much that you can’t sleep at night and are unable to enjoy life, the experienced Chapter 7, Chapter 13, and Chapter 11 bankruptcy attorneys at Manassas Law Firm can help immediately. For more information, check out our post: Will Bankruptcy Clear all Debt? Experienced Bankruptcy Law Firm Helps People Struggling with Debt in Prince William County and Surrounding Area While sometimes the person causes a debt crisis by poor money management and uncontrolled spending, more often it’s because of unexpected circumstances. And it certainly doesn’t mean you’re irresponsible or a bad person. Though we wish we could control everything in our lives, many situations are out of our control. But there’s something you can control now. Whatever got you into this mess, the Manassas Law Group can offer reassurance and immediate help to halt foreclosures, repossessions, evictions, and creditor harassment. As your bankruptcy attorneys, we’ll help you eliminate or restructure your debts so you can regain solid financial footing. For help to decide whether you should file for bankruptcy and which option is right for you, under Chapter 7, Chapter 13 or Chapter 11 relief, a Manassas Law Group bankruptcy attorney will respectfully listen to your debt problems and explain the legal strategies and options that will best resolve your pressing financial issues. Call 703.361.8246 today or send us a message on our contact form to schedule your free, no-obligation initial consultation in our downtown Manassas office.

Bankruptcy is intended to give those who have found themselves impossibly burdened by debt a fresh start and respite from the stress of collection attempts, creditor telephone calls, some lawsuits, wage garnishments, and other creditor actions. While many debtors think bankruptcy will erase all financial obligations and save their property from foreclosure or repossession, there are certain debts that cannot be erased. The good news is that under bankruptcy law non-secured credit card balances, personal loans, medical bills, and various other types of non-secured fiduciary obligations can be eliminated. The initial benefit when you file for bankruptcy is that the court orders an “automatic stay,” which gives you a temporary reprieve from collection activity. While your bankruptcy is pending, you can answer the phone without fear and for the first time in months breathe easier. In the short term, if a foreclosure, repossession, or eviction is pending, it can put those actions on hold allowing you time to regroup and arrange any resources. There are two types of bankruptcy that people file: Chapter 7 and Chapter 13. The type of bankruptcy you pursue will depend on your unique financial situation which takes into consideration your available income, assets, property, and goals. Before you file for bankruptcy, it’s important to know what type of relief each offers. Chapter 7 bankruptcy is typically for those debtors with limited or no assets, and it may be the best option for those who want to eliminate their qualifying debts altogether. The advantage of Chapter 7 bankruptcy is that you receive a completely fresh start except for non-qualifying debts. Though your bankruptcy is discharged, you will still have to pay secured debts such as a mortgage or it will be foreclosed on and financed possessions such as a car or they will be repossessed. Chapter 13 bankruptcy doesn’t allow for the discharge of all debts, but it does provide certain qualifying property owners with relief from home foreclosure and repossession of certain other assets. Under the provisions of Chapter 13, the person filing Chapter 13 bankruptcy creates a payment plan for their debt, usually paying only a portion of what is owed.  It also allows debtors a rescheduled payment plan for secured debts, extending those payments over the Chapter 13 restructuring plan period. Basically, Chapter 13 functions to allow the debtor to make payments through a trustee over time. However, before filing for bankruptcy, it’s important to know the debts that cannot be discharged. They include: Child support Alimony Student loans (with limited exceptions) Debts incurred for personal injury or death caused by driving intoxicated Income tax debts within the past three years and any other tax debts Debts not listed in your bankruptcy papers Debts from willful or malicious injury to another person or another person’s property Fraud related to debt Criminal fines, restitution, penalties including traffic fines Debts from embezzlement, larceny or breach of trust Debts you owe under a divorce decree or settlement (with some exceptions) In summary, Chapter 7 bankruptcy eliminates all but non-exempt debts. Chapter 13 bankruptcy requires you to pay restructured payment plan for a portion, or sometimes 100%, of the debt owed. For help to decide whether you should file for bankruptcy, or whether you should file under Chapter 7 or Chapter 13 protections, a Manassas Law Group bankruptcy attorney will meet with you to respectfully answer your questions and discuss the legal strategies and options that will best provide you with the relief you need. Call 703.361.8246 today or send us a message on our contact form to schedule your initial consultation in our downtown Manassas office.