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10

Apr 2020

Announcement: Bankruptcy Hearings: Now Telephonic

Posted by / in Virginia Bankruptcy, Weekly Posts /

The Alexandria Bankruptcy Court Trustee Hearings are now by Telephone.

Bankruptcy Trustee hearings are now telephonic. That’s the policy of the Alexandria VA bankruptcy court, effective April 9, 2020. (Richmond and Norfolk, too.)

woman calling into bankruptcy hearing

Instead of a location, your hearing notice will have a phone number to call.

People who file bankruptcy are required by law to “appear” in front of the bankruptcy trustee to answer questions.  (For most people, the questions are, “Did you go over these papers when you signed them, and is everything you put there true?”) Those hearings by law are between four and six weeks after we send your papers to the court.

Starting now, you and I will appear by phone.

The trustee does about a dozen hearings per hour; and everybody will call in the same phone number. So you and I will be listening in on the hearings for every other person that hour. (This is the same as it would be if we were all sitting in the hearing room together.)

Mute your phone. When you call in, don’t say “Am I on? Am I on?” You’re on an open mic to the whole room. If you talk when it’s not your turn, you are interrupting the bankruptcy trustee. (You don’t want the trustee to be grumpy when it’s your turn.)

The trustee is supposed to check your ID and social security number. On the phone there’s no way they can match your picture. But having an ID that matches the name on the bankruptcy papers at least proves something. So take a picture, or scan, of your ID and social security card.  Email to vanessa@robertweed.com.

We Will Talk Privately Before and After

You and I will have a call-in the Saturday before scheduled time. To go over what’s going to happen. And make sure you are ready to call in.

On the day of, I’ll email you about ten minutes before; to make sure you are there; and cover any last minute jitters.  Afterwards, I send an email wrap-up. And set a time for a call later in the day to handle any follow up questions you have, or action items that came out of the hearing. Those calls will only be between us.

I’ll be looking at my email during the hearing, so if you want to whisper me a question, do it by email.  Use robertrossweed@gmail.com.  That’s the email I’ll be watching. (It gets to me 45 second quicker than robertweed@robertweed.com.)

Here are documents you should get 

The Notice of a Bankruptcy case comes to you in the mail about a week after the papers go in.  It tells when when your telephonic “appearance” is. It’s also a notice to the people you owe money to that they are required to leave you alone.  And that anybody who is garnishing you has to stop. 

Your Order to debtor  tells you that you are required to show up for the telephonic appearance.  And that if somebody dies and leave you money in the next six months, the bankruptcy trustee can come and get it. You get this in the mail with the Notice of a Bankruptcy Case.

Here’s stuff you need to look at before your telephonic bankruptcy hearing

The Bankruptcy information sheet is a form I’m required to give you.  Congress really wants you to know you have four choices under the bankruptcy law.  Chapter 12 is only for farmers (and fishermen.) I’ve never done a farmer. Chapter 11 is for people like Donald Trump. I’ve never done Donald Trump. Chapter 13 is a payment plan through the court. Chapter 13 can get you five years to catch up your house or pay off your taxes, You can also be forced into Chapter 13 if you are making too much money to get approved for Chapter 7.

Chapter 7 says ‘sorry I can’t pay these debts.’ For most people that’s what we want.

This Hearing Info is from me. It explains that you need to get us bank statements that cover the date your bankruptcy was filed.  For ALL your bank accounts including the ones “I never use.” It also lists the questions they usually ask.

Finally here’s my 15 minute video

Ignore the parts about where to go and where to park–these are telephonic bankruptcy hearings, remember.  But the other stuff is still right.  PS Actually one other correction. We use Moneysharp.org for the required class.  (The video mentions Hummingbird. They stopped covering Virginia.)

PS   The telephonic policy has been extended. Telephonic continues until 60 days AFTER the President announces the emergency is over.  That could be a long time.  

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07

Sep 2019

Announcement: What to Expect at Your Bankruptcy Hearing

Posted by / in Blog, Virginia Bankruptcy, Weekly Posts /

What to Expect at Your Bankruptcy Hearing

For most people, your only bankruptcy hearing is what’s called the “meeting of creditors.”  (We almost never actually have creditors show up. We can also call it your “trustee hearing.”)

Here’s a video that explains where to go, best places to park, what to bring and what questions you’ll be asked.

I’ll be there as your lawyer, but you can review this video to know what to expect.

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06

Sep 2020

Virginia Homestead Exemption too low to protect this Widow.

Posted by / in Virginia Bankruptcy, Weekly Posts /

Told a Widow this Week, She’ll Lose her House because of COVID and Business Debts

I had a heart-breaking call this week with a widow, who lost her small shop in the COVID depression.

Small business

Widow lost her small shop in the COVID depression. The Virginia homestead exemption is too small to protect her house.

She has about $65,000 in business debts and no way to pay them. 

If she tries to file Chapter 7 bankruptcy here in Virginia, the bankruptcy trustee will sell her house to pay those debts. Virginia law protects real estate that belongs to a married couple–but she’s a widow.

Bankruptcy is set up by the Federal Government, but each state sets its own rule on how much real estate equity you can protect. (That’s called your homestead exemption.) Thanks to the new majority in the Virginia General Assembly, you can protect $30,000.00 in equity. (Up from $5,000.00. The Virginia homestead exemption had been the lowest in the country.)

This widow has a little over $100,000.00 in equity, so the Virginia homestead exemption isn’t enough for her. She may need to sell the house to get cash to survive, because she lost her business, and isn’t social security age yet.

I like to say I can help almost everyone who contacts me; but I can’t help her.

PS Virginia Homestead Exemption is still near the bottom

While Virginia increased our homestead exemption from $5,000.00 to $30,000.00, it’s still near the bottom of the fifty states. You can protect 100 acres of Texas, 160 acres of Florida.  You could own the entire District of Columbia. Just this week California increased their homestead exemption from $75,000 to $300,000, in the rural counties. And up to $600,000 in in the urban areas.

Here’s a slightly outdated breakdown of the homestead exemption of all fifty states.

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NORTHERN VIRGINIA BANKRUPTCY LAW OFFICES