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Get Answers to These Important Questions From Your Bankruptcy Attorney

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Bankruptcy can be a difficult and emotional decision, but sometimes it’s the best way to get a fresh start and improve your financial future. However, it’s essential to work with a bankruptcy attorney who can guide you through the process and answer any questions you may have. Here are the top questions to ask your bankruptcy lawyer in Alexandria VA before filing for bankruptcy.

Does bankruptcy erase all my debt?

One of the most common misconceptions about bankruptcy is that it will wipe out all your debts. While bankruptcy can eliminate many types of debts, some obligations are exempt from discharge. For example, you cannot discharge student loans, most tax debts, child support, and alimony payments in bankruptcy. Therefore, it’s crucial to ask your bankruptcy attorney which debts you can discharge and which ones you cannot.

What should I expect from the bankruptcy process?

Another essential question to ask your bankruptcy attorney is what to expect from the bankruptcy process itself. Your attorney should explain how bankruptcy works, what you need to do to file, and what the timeline looks like. For example, you’ll need to complete a credit counseling course before filing for bankruptcy and attend a meeting of creditors after filing. Knowing what to expect can help you prepare and alleviate some of the stress associated with the bankruptcy process.

Time to Finalize Bankruptcies

The bankruptcy process can take several months or more to complete, depending on the type of bankruptcy you file and your specific circumstances. Chapter 7 bankruptcies typically take around four to six months to complete, while Chapter 13 bankruptcies can take three to five years. Therefore, it’s essential to ask your bankruptcy attorney about the expected timeline for your case, so you know what to expect.

Choosing Between Chapter 7 and Chapter 13 Bankruptcy:

Another critical question to ask your bankruptcy attorney is which type of bankruptcy is right for you. Chapter 7 bankruptcy is often referred to as a “liquidation” bankruptcy because the trustee may sell some of your assets to pay off your debts. However, most people who file for Chapter 7 bankruptcy don’t lose any property because the law allows them to keep essential assets.

Chapter 13 bankruptcy, on the other hand, is a reorganization bankruptcy that allows you to repay some or all of your debts over three to five years. Your attorney can help you determine which option is best for your unique situation.

The Risks of Debt Settlement

Debt settlement can be an attractive alternative to bankruptcy because it allows you to negotiate with your creditors to pay off your debts for less than what you owe. However, debt settlement also comes with risks. For example, debt settlement companies may charge high fees and fail to deliver the results they promised. Additionally, settling a debt for less than what you owe can have tax consequences, and creditors may still report the settled debt to credit reporting agencies, which can harm your credit score. Before considering debt settlement, it’s essential to weigh the risks and benefits carefully.

What Happens to Student Loans in a Bankruptcy?

As mentioned earlier, student loans are generally not dischargeable in bankruptcy. However, in some cases, you may be able to discharge student loans if you can prove “undue hardship,” which is a difficult standard to meet. To qualify, you must show that repaying your student loans would cause you and your dependents to be unable to maintain a minimal standard of living. It’s important to note that even if you can’t discharge your student loans, bankruptcy may still be an effective way to manage your other debts and get a fresh start.

Factors to Consider When Deciding Whether to Declare Bankruptcy

Deciding to file for bankruptcy is a significant decision that requires careful consideration. Some factors to consider include:

  1. The type and amount of debt you have
  2. Your ability to pay off your debts
  3. The impact of bankruptcy on your credit score
  4. Whether you have assets that could be at risk in bankruptcy
  5. The potential tax consequences of bankruptcy

Your bankruptcy attorney can help you evaluate these factors and determine whether bankruptcy is the right choice for you.

Schedule a Consultation With The Law Offices of Robert S. Brandt to Speak With a Leading Bankruptcy Lawyer in Alexandria VA

If you’re struggling with debt and considering bankruptcy, it’s important to work with a qualified bankruptcy attorney who can help you understand your options and guide you through the process. At The Law Offices of Robert S. Brandt, I have years of experience helping clients in Alexandria VA and the surrounding areas find debt relief and get a fresh start. I offer personalized attention and tailored solutions to meet my clients’ unique needs. Contact me today to schedule a consultation with a leading bankruptcy lawyer in Alexandria VA.


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Achieving Debt Relief in Virginia: Guide to Settling Your Debt

Debt can be a significant burden, causing stress and anxiety for individuals and families in Virginia. The good news is that there are ways to achieve debt relief and settle a debt in Virginia. Here are the steps you can take to negotiate a debt settlement and provide useful information about debt relief in Virginia.

Send Your Initial Response to the Debt Lawsuit

If you’ve been served with a debt lawsuit, it’s essential to respond quickly. Virginia law requires you to respond to the lawsuit within 21 days. Failing to respond can result in a default judgment against you, which can be challenging to overturn.

When responding to a debt lawsuit, you have several options. You can either admit to the debt, deny it, or claim that the debt is time-barred. It’s essential to seek legal advice to determine the best course of action.

Start Negotiations by Sending a Settlement Offer

Once you’ve responded to the lawsuit, you can start negotiating a debt settlement with your creditor. It’s essential to have a clear idea of your financial situation and how much you can afford to pay.

When making a settlement offer, you should consider offering a lump sum payment or a payment plan that fits within your budget. Be prepared to negotiate with your creditor and be open to compromise.

Arrange and Sign the Debt Settlement Agreement

If you’ve reached an agreement with your creditor, it’s crucial to have a written debt settlement agreement. The agreement should outline the terms of the settlement, including the payment amount, due date, and any other conditions.

It’s important to read the agreement carefully and make sure you understand the terms before signing. Once signed, the agreement is legally binding, and you’ll be required to adhere to its terms.

Other Information About Debts in Virginia

In Virginia, the statute of limitations for most debts is five years. This means that a creditor has five years from the last payment or acknowledgment of the debt to file a lawsuit against you. If the statute of limitations has expired, you can use this as a defense in court.

Additionally, Virginia law prohibits creditors from garnishing wages for most debts, including credit card debts. However, they can garnish wages for unpaid taxes, student loans, and child support.

Get in Touch to Schedule a Consultation With The Law Offices of Robert S. Brandt for Debt Relief in Virginia

If you’re struggling with debt and need help negotiating a settlement, it’s essential to seek legal advice. The Law Offices of Robert S. Brandt can provide guidance and support throughout the debt settlement process. Contact me to schedule a consultation with one of the leading bankruptcy lawyers in Virginia, and learn more about your options for debt relief in Virginia.


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The Ultimate Guide to Debt Relief Programs and Strategies

Debt can be overwhelming and stressful, especially when it starts to pile up. Fortunately, there are several debt relief programs and strategies that can help you manage your debt and regain control of your finances. In this blog, we will discuss some of the best debt relief programs and strategies that you can use to manage your debt with the help of a debt relief agency.

The Debt Settlement Process Explained

Debt settlement is a debt relief program that involves negotiating with your creditors to settle your debts for less than what you owe. This can be an effective way to reduce your debt and get back on track financially. The debt settlement process typically involves the following steps:

Assess your debt: The first step in the debt settlement process is to assess your debt and determine which debts you want to settle.

Save money: You will need to save money to pay off the settlement amount. This may involve setting up a payment plan or making lump sum payments.

Negotiate with creditors: Once you have saved up enough money, you will negotiate with your creditors to settle your debts for less than what you owe.

Pay the settlement amount: If you reach an agreement with your creditors, you will need to pay the settlement amount to finalize the debt settlement process.

Some of the Benefits of Using Debt Settlement

There are several benefits to using debt settlement to manage your debt. Here are some of the most significant advantages:

Reduce your debt: Debt settlement can help you reduce your debt by negotiating with your creditors to settle your debts for less than what you owe.

Avoid bankruptcy: Debt settlement can be an effective alternative to bankruptcy, which can have long-term negative consequences on your credit score and financial future.

Stop collection calls: Debt settlement can put an end to the collection calls and letters from your creditors, giving you some much-needed relief from the stress of dealing with debt.

Improve your credit score: While debt settlement can initially have a negative impact on your credit score, once you have settled your debts, you can start to rebuild your credit and improve your score.

Should You Get Debt Counseling?

Debt counseling can be an effective way to manage your debt and get back on track financially. A debt counselor can help you develop a debt management plan that is tailored to your specific needs and financial situation. Here are some signs that you may benefit from debt counseling:

• You are struggling to make minimum payments on your debts

• You are falling behind on your bills and other expenses.

• You are using credit cards to pay for necessities like food and rent.

• You are receiving collection calls and letters from your creditors.

 

Debt counseling can provide you with the tools and resources you need to manage your debt and improve your financial situation. A debt counselor can help you understand your options and develop a plan to pay off your debts over time.

How to Use Credit Counseling

Credit counseling is a service that can help you manage your debt and improve your financial situation. Here are some steps to follow when using credit counseling:

Find a reputable credit counseling agency: Look for a nonprofit credit counseling agency that is accredited by the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA).

Schedule a consultation: Contact the credit counseling agency and schedule a consultation. During the consultation, the credit counselor will review your financial situation and recommend a debt management plan.

Develop a debt management plan: If you decide to move forward with credit counseling, the credit counselor will work with you to develop a debt management plan. This plan may involve consolidating your debts, negotiating with creditors, and creating a budget.

Stick to the plan: Once you have a debt management plan in place, it is important to stick to it. This may involve making regular payments to the credit counseling agency, paying off your debts on time, and following a budget.

Declaring Bankruptcy as a Strategy

Declaring bankruptcy is a strategy that can help you get rid of your debt and start fresh financially. However, it is important to consider the potential consequences of bankruptcy before making this decision. Here are some things to keep in mind:

Types of bankruptcy: There are two main types of bankruptcy: Chapter 7 and Chapter 13. Chapter 7 bankruptcy involves liquidating your assets to pay off your debts, while Chapter 13 bankruptcy involves creating a repayment plan to pay off your debts over time.

Impact on credit score: Declaring bankruptcy can have a significant negative impact on your credit score and financial future. It can stay on your credit report for up to 10 years and may make it difficult to obtain credit or loans in the future.

Eligibility: Not everyone is eligible for bankruptcy. Your income, expenses, and assets will be evaluated to determine whether you qualify for bankruptcy.

Consult with a bankruptcy attorney: If you are considering bankruptcy as a strategy, it is important to consult with a bankruptcy attorney. They can help you understand your options and navigate the bankruptcy process.

Use a Savings Calculator

A savings calculator can be a useful tool when managing your debt. It can help you determine how much you need to save each month to pay off your debts and reach your financial goals. Here’s how to use a savings calculator:

Enter your debt information: Enter the total amount of debt you have, the interest rate, and the minimum payment amount.

Set a savings goal: Determine how much you want to save each month to pay off your debts and reach your financial goals.

Calculate your savings: The savings calculator will calculate how long it will take you to pay off your debts and how much you need to save each month to reach your goal.

Adjust your plan: If the savings goal seems too high or too low, adjust your plan accordingly. You may need to increase your monthly savings or adjust your debt management plan to reach your financial goals.

Request a Consultation With the Law Offices of Robert S. Brandt, For Debt Relief Agency Help

If you are struggling with debt and need professional help, request a consultation with the Law Offices of Robert S. Brandt, and our debt relief agency can help you put yourself back on financial track.


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What is the Statute of Limitations on Debt in Virginia?

If you’re receiving collection calls or letters from creditors looking for unpaid debt, the statute of limitations in Virginia is something you should be aware of. A statute of limitations on debt limits the time period for which a creditor or collections agency can file a lawsuit to collect an outstanding debt. However, if the age of the debt is past the statute of limitations, you might not need to pay it back at all. Here’s what you need to know and how a debt relief agency can advise you when it comes to your debt.

Statute of Limitations

A statute of limitations is a time limit within which a creditor or collections agency can file a lawsuit to collect an outstanding debt. In Virginia, the statute of limitations is three to five years for most debts. There are a few exceptions to this rule, and specific statutes of limitations for specific debts:

  • Credit Cards: 5 years
  • Mortgages: 5 years
  • Oral Debts: 3 years
  • Auto Loans: 4 years
  • Medical Debts: 5 years
  • State Tax Debts: 7 years

While the statute of limitations expires, a debt collector is prohibited from security recovery by means of a court judgment. They can still attempt to recover an old debt and might continue to use a variety of other collection methods, but they cannot go to court to get a judgment for the full amount of the debt.

Debt Collection Protections

While creditors can still try to collect an old debt, debtors are shielded in Virginia from malicious and harassing debt collectors. This means that collectors cannot engage in any kind of extortion, such as threatening to sue if payment is not made immediately. Collectors can, however, contact you about the debt if you have not responded to their previous communication.

If you’re feeling harassed by a debt collector, or if you believe that your debt is not valid, consider talking to a debt relief agency. They can provide you with advice on how to deal with your debt and protect your rights.

You are protected by the Fair Debt Collection Practice Act (FDCPA), meaning there are rules for credit collectors. These will protect you from false, annoying, and abusive tactics.

If You Receive a Collection Letter

You should always review whether the collection letter is legal. Debt collectors are not allowed to duplicate legal documents for debt collection in Virginia. They can send you a letter about the debt owed, but it cannot include threats of legal action, legal demands for money, or any other threats.

Get Advice from a Debt Relief Agency Like the Law Office of Robert S. Brandt

If you are being harassed about an old debt and think the statute of limitations has expired, it’s best to confirm with a debt relief agency. At The Law Office of Robert S. Brandt, we have years of experience helping people with debt problems. We can provide you with advice on how to deal with your debt and protect your rights. Contact us today to make a consultation request.


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How do Debt Settlement Companies work?

Debt settlement companies are smart.  They know your weakness. They know that for the majority of folks out there, filing for bankruptcy is the last thing in the world they would ever consider doing.  Debt settlement companies understand all too well that there are people out there like my Dad who would rather cut off his left hand and go without food and water for a week then be branded “bankrupt.” For most, filing for bankruptcy is simply viewed as not an option. Debt settlement companies know this, and they play on your vulnerability. Debt settlement companies purport (strong emphasis on purport) to offer you an out that will be your salvation while at the same time relieving you of the need to file for bankruptcy. The problem is, debt settlement simply does not work.

In theory, debt settlement is supposed to work as follows: Rather than paying the full amount that you owe to your credit card companies, debt settlement companies, using their “savvy business skills” will negotiate with your credit card companies and get them to accept only one half of the amount you owe.

Now, let’s look at the disadvantages with debt settlement companies.  First, debt settlement companies will claim that using their services will save your credit score.  That simply is not true.  Debt settlement companies might be telling you, or you might be telling yourself, that filing for bankruptcy will destroy your credit score whereas using the debt settlement route will avoid this huge blemish on your credit report. What’s the problem with this logic? Well…ah…it’s wrong. The majority of people when they are at the crossroad of bankruptcy vs. debt settlement have a credit score that is, well, how should I put this, pretty bad. Filing for bankruptcy at this point will not harm your credit score. If you credit score is below 600 there is not a whole lot left to harm.  In fact, filing for bankruptcy will stop the bleeding and give you the opportunity to start to rehabilitate your credit score.

What about the people who are still hanging on, making their minimum monthly payments and have a credit score that is 600 or higher? Aren’t they better off choosing debt settlement to avoid bankruptcy? Well, that brings me to my next point; using a debt settlement company will destroy your credit score.  One of the first things a debt settlement company will tell you is to stop paying your credit card companies and start making monthly payments to them instead.  They will go on to explain that once they have accumulated 50% of your outstanding credit card debt they will then enter into negotiations with your credit card companies to settle your debt. For most people that typically means several years of payments to their debt settlement company. What’s the problem with this seemingly logic tactic? Well, within 2 to 3 months your credit score will be severely damaged.  After 1 year, it will be completely destroyed.  Credit card companies want timely payment from you every month and they can care less that you are working with a debt settlement company.

And here comes problem number three; debt settlement companies leave you exposed. If you think that credit card companies are going to sit idly by while you are making payments to your debt settlement company then, I hate to tell you, you are simply mistaken. Credit card companies will eventually sue you, get judgments, and seek to garnish your wages, all while you are making payments to your debt settlement company. And what happens when you complain to your debt settlement company? After a whole bunch of nonsense and run around, your debt settlement company may have the temerity to suggest that you should file for bankruptcy.  In fact, here comes the kicker, they might even encourage you to retain their services for the filing of your bankruptcy as well.

The remaining problem with working with a debt settlement company comes down to dollars and cents. They want a whole lot of money and they want it upfront.  Moreover, the money is non-refundable, regardless of whether you successfully complete their payment program! Meaning, during those initial six to twelve months of payments, virtually all of that money is going into their pockets.   Debt settlement companies typically want 15% of your credit card debt as their fee, plus some additional junk fees.  For instance, if you have $40,000 in credit card debt, expect to pay them at least $6,000 for playing the middle man.  Not to mention the fact that for most folks being put on a payment plan of anywhere between $500-$1000 per month for several years is next to impossible.

So, are there any benefits to using debt settlement companies? Does my article speak the truth or offer you a biased opinion of a bankruptcy lawyer? Are you wondering what sort of track record do debt settlement companies have? Read the following articles to see for yourself: The New York Times article Peddling Relief, Firms Put Debtors in Deeper Hole as well as

A Shocking Peek Inside the Seedy World of Debt Settlement Companies by Avvo.