Bankruptcy Attorneys in Alexandria
Restoring Your Control Over Your Financial Future
Are you struggling to make ends meet because your debt has become unmanageable? Whether your financial hardship is the result of past mistakes or a catastrophic event outside of your control, you deserve to feel confident in your future. At Tesfaye Law, we can attest to the fact that even the most hard-working and diligent people can find themselves overwhelmed by debt.
Despite its negative reputation, bankruptcy can be a highly effective form of debt relief. Some of our nation’s most affluent individuals and businesses filed bankruptcy before attaining success, and we want you to experience this solution for yourself. With our guidance, you can efficiently navigate this process and restore your sense of control over your financial future.
Types of Bankruptcy
One of the first decisions we will make when you bring your case to our firm is what type of bankruptcy is right for your situation. This decision will depend on your level of debt, type of debt, assets, and monthly income.
Two of the most common forms of bankruptcy are Chapter 7 and Chapter 13. In both types of cases, filers benefit from the automatic stay: an immediate halt of all collection actions. Calls, letters, wage garnishments, and even foreclosure must stop as soon as you file. This is one of the most powerful benefits of bankruptcy.
Chapter 7 Bankruptcy
Available to both individuals and businesses, Chapter 7 is often referred to as “liquidation bankruptcy” because the trustee liquidates (i.e. sells) the debtor’s nonexempt assets to repay their creditors. In most Chapter 7 cases, the Bankruptcy Court discharges most or all of the filer’s debt.
Here are a few other things to know about Chapter 7:
- The entire process typically takes 4-6 months.
- Not everyone will qualify. You generally need to make less than your state’s median income. This assessment is part of the means test, which determines whether you are eligible for Chapter 7.
- The assets you can keep (i.e. bankruptcy exemptions) depend on state law. In Virginia, for example, you can keep up to a certain amount of equity in your home, vehicle, personal property, and more.
- Chapter 7 bankruptcy will stay on your credit report for 10 years, but it will become less influential as years pass.
Chapter 13 Bankruptcy
If you don’t qualify for Chapter 7, or we believe you may lose important assets in the process, Chapter 13 may be a better option. Chapter 13 is a form of debt reorganization, where the court consolidates your debt into a 3-5-year repayment plan. Only individuals can file under Chapter 13, and it will stay on the filer’s credit report for 7 years.
To create the repayment plan and determine your monthly payments, the court assesses your debt and calculates your disposable income. You must use all disposable income to meet payments. At the end of the 3-5 years, the court will generally discharge any remaining debt.
Because you are repaying your creditors, you most likely will not lose any of your assets. Chapter 13, therefore, is one of the most effective ways to save your home from foreclosure.
Serving Clients in Virginia, Maryland, and Washington D.C.
Several prevalent myths surrounding bankruptcy prevent countless consumers and business owners from taking advantage of this financial solution. Many falsely believe, for example, that bankruptcy will permanently ruin their credit score, or that they will lose everything to their name if they file. Let Tesfaye Law dispel these pervasive myths and help you begin your path toward a brighter future.
Do you want your legal issue to be as painless as possible? No one wants to spend more time than they need to in a courtroom. Let us utilize our high-powered strategies and resources to advocate for your rights and resolve your matter as efficiently as possible. We have a track record of delivering exceptional support to each and every client, and we want you to benefit from this level of service.
Without a doubt I would recommend him to anyone looking for Legal advisory- Gamal G.
I would like to highlight three words: Highly Professional, Knowledgeable and Result Oriented.- Farhan C.
I wish there was enough words to explain how brilliant this attorney is.- Stephen K.
We greatly appreciate him and we highly recommend his service.- Valerie G.
Presented to me all the possible scenarios with honesty, sincerity and professionalism.- Jamal K.