Most people who file bankruptcy never go to the bankruptcy courthouse.
 
About a month after your bankruptcy papers are filed, you have to attend a bankruptcy trustee hearing.  (Also called a “meeting of creditors” or a “341 hearing.”)  Those routine and they are done on Zoom.
When something is NOT routine, we have to go in front of the bankruptcy judge at the bankruptcy courthouse.
Where is that bankruptcy courthouse?

The bankruptcy court in Alexandria VA serves all of Northern Virginia. The Virginia bankruptcy court is a federal court. The Federal Court system divides Virginia into Eastern and Western districts.
We’re in the Eastern District, Alexandria Division

The FDCPA requires that a debt collector sue you in the right judicial district.
Virginia is divided into Judicial Districts. You can see that map here.
In Northern Virginia, most district are one county. But Loudoun and Fauquier share one district. Stafford is in with Fredericksburg and Spotsylvania. So if you live in Stafford, they can sue you in Spotsy. And if you live in Fauquier, they can sue you in Loudoun. Right?
That’s what we thought.

What Is Bankruptcy?
Bankruptcy gives a fresh start to honest debtors. That’s what the Supreme Court said more than seventy years ago. A fresh start to honest debtors and a clear field for the future. (As an aside, we know how hard it can be to decide if bankruptcy is right for you, that’s why we encourage you to read our many client reviews.)

Chapter 13 is price controlled by the bankruptcy judges. In August 2023, they set the fee at $6339.
We get about half up front, and the rest out of the Chapter 13 payment you make to the court.
So up front, $700, $1000, and $1100. Then $3529 from your payments–that works out to $65 a month over a five year Chapter 13.
Here’s the Chapter 13 fee Agreement

Your Bankruptcy Papers
“Here are the papers we sign and file, to get your bankruptcy officially started. This is a half-hour video.”
 

When you’re in chapter 13, you don’t want a tax refund. Why? If you get a refund more than $250.00, you have to send it in to the bankruptcy trustee. So you don’t want to over-withhold.
You also don’t want to under-withhold. Why? Because on April 15, you’ll owe a tax payment. And you probably won’t have money available to pay it.
So you want as far as possible to break even when the taxes are filed.

What About ….?
What about my bank account?
Filing bankruptcy does not force you to close your bank account. (Many credit unions will fire you as a customer.) If your credit is already so bad you can’t open an account, try TD Bank, a new bank in Northern Virginia. Another option is Wood Forest Bank, in some of the larger Walmarts, including the one on Liberia Avenue in Manassas..
What about immigration status?

Many clients have contacted us regarding defaulted SBA EIDL loans and the period of time in which the SBA or the Government may sue them to collect on the defaulted loan (the statute of limitations). The law and rules, as noted below are complex and vary based on the facts of the case.

1. The Federal Government has 6 years to commence a lawsuit (statute of limitations) against the entity or person that obtained the EIDL loan from the SBA and defaulted.