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. But the Seventh Circuit just came down with a new rule for FDCPA Venue. They said basically if there’s a separate courthouse in each county, then they have to sue you in the right county. Now the Seventh Circuit is over in the mid-west. The Fourth circuit are the judges that oversee the courts in Virginia. So this Seventh Circuit rule does not necessarily apply here. But it might. I hate it when debt collectors do illegal stuff to my bankruptcy clients. And I sue them when I can. So I’m keeping an eye on whether other judges agree with the Seventh Circuit on this.

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.) There are about as many bankruptcies in America each year as there are divorces–about a million. This year there will be ten thousand in Northern Virginia. Recently the biggest cause of bankruptcy in Northern Virginia is people getting caught in the real estate crisis, and people losing their jobs in the recession. Historically, most people filed bankruptcy because of medical problems, or job loss. Many people because of a breakup of a marriage or loss of a spouse. Some people just charged too much when things looked good. What Are The Bankruptcy “Chapters”? You have two main choices under the bankruptcy law–Chapter 13 and Chapter 7. Chapter 13 is a debt adjustment. The court works out a payment plan you can afford. Chapter 13 may be required for higher income people. The new bankruptcy law was promoted as an effort to force more people to file Chapter 13. Mostly it hasn’t. Bankruptcy lawyers have been pretty successful at working with or working around the requirements of the new law. Chapter 7 Under Chapter 7, most unsecured debts are discharged–they’re gone. (You usually cannot be discharged from taxes, student loans, or child support. You also cannot be discharged from credit cards you agreed to pay as part of your divorce.) Our law firm thinks that Chapter 7 is better for most people. It’s over quicker and gets you back to good credit much sooner. We try everything we can to qualify people for Chapter 7 if they need Chapter 7. Chapter 13 Chapter 13 is good to stop the foreclosure on your house and give you time to catch up. Chapter 13 can also be used creatively to fix a variety of unusual problems. (Some of which I can’t put in writing). If you agreed in your divorce to pay certain bills–I’m not talking about support here, but if your property settlement was a really a “debt” settlement–Chapter 13 can get rid of those. (You hear in the news about Chapter 11. Chapter 11 is for business–usually big business. Chapter 11 is a plan to pay some debts, wipe out others, and keep the business going. People who owe a million dollars on their house may be required to file Chapter 11–we’re starting to see some of that now.)

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.) There are about as many bankruptcies in America each year as there are divorces–about a million. This year there will be ten thousand in Northern Virginia. Recently the biggest cause of bankruptcy in Northern Virginia is people getting caught in the real estate crisis, and people losing their jobs in the recession. Historically, most people filed bankruptcy because of medical problems, or job loss. Many people because of a breakup of a marriage or loss of a spouse. Some people just charged too much when things looked good. What Are The Bankruptcy “Chapters”? You have two main choices under the bankruptcy law–Chapter 13 and Chapter 7. Chapter 13 is a debt adjustment. The court works out a payment plan you can afford. Chapter 13 may be required for higher income people. The new bankruptcy law was promoted as an effort to force more people to file Chapter 13. Mostly it hasn’t. Bankruptcy lawyers have been pretty successful at working with or working around the requirements of the new law. Chapter 7 Under Chapter 7, most unsecured debts are discharged–they’re gone. (You usually cannot be discharged from taxes, student loans, or child support. You also cannot be discharged from credit cards you agreed to pay as part of your divorce.) Our law firm thinks that Chapter 7 is better for most people. It’s over quicker and gets you back to good credit much sooner. We try everything we can to qualify people for Chapter 7 if they need Chapter 7. Chapter 13 Chapter 13 is good to stop the foreclosure on your house and give you time to catch up. Chapter 13 can also be used creatively to fix a variety of unusual problems. (Some of which I can’t put in writing). If you agreed in your divorce to pay certain bills–I’m not talking about support here, but if your property settlement was a really a “debt” settlement–Chapter 13 can get rid of those. (You hear in the news about Chapter 11. Chapter 11 is for business–usually big business. Chapter 11 is a plan to pay some debts, wipe out others, and keep the business going. People who owe a million dollars on their house may be required to file Chapter 11–we’re starting to see some of that now.)

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

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

There are several dozen outfits that are approved to offer the required bankruptcy classes. We recommend Moneysharp.org. Click here for full size. We like Moneysharp because the $10 price is reasonable, and because many people think those classes are actually helpful. (Remember, even if they are not helpful to you, they are still required.) You need to call 866-200-6825 To get this to work, you need to call the 866-200-6825 phone number twice. Call it when you are ready to start, and have them charge it on my account. (That way I get a copy of the approval, that I can upload straight to the court.) You see they print my name right on the coupon. (Typing my name into the coupon code blank on the website isn’t enough; you still need to call.) Then call again after you finish. They want to talk to you for a few minutes to confirm you paid some attention to the class. They make you spend at least two hours on the internet. Some people really get into it, and spend longer. Don’t get bogged down. The bankruptcy classes are like the second grade: you can’t fail, you just have to be there. There Are Two Bankruptcy Classes: You Can’t Take Them Together You have to do the first class before we can send your papers to the court. The second class can’t be done early–you can’t do it before we send in the papers. It should be done during the month right after the papers go to the court, but before we go to the court. Watch Out for Scammers There are scammers who try to scare you into taking their more expensive second class. They send out an official-looking warning, to sign you up for their bankruptcy class, instead. Don’t fall for it. Do both classes with Moneysharp. They’re the people we work with and like best. PS Moneysharp is also available En Espanol. Ask about it when you call.

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

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