Bankruptcy proceedings are heard in federal court.
The right to file for bankruptcy protection was established by the United States Constitution, and laws regarding bankruptcy are created at the federal level. The United States Supreme Court has prescribed procedural rules for bankruptcy cases, but has also provided district courts with the ability to adopt local rules, as long as those rules are in compliance with the Federal Rules of Bankruptcy Procedure. The United States Bankruptcy Court for the Eastern District of Virginia operates under prescribed local rules of practice and procedure that are referred to as the Local Bankruptcy Rules. The United States Bankruptcy Court for the Western District of Virginia operates under prescribed local rules of practice and procedure that are referred to as the Local Rules of Practice.
Fees
Debtors filing for bankruptcy protection in the Eastern District may request to pay their filing fees by installment by filing the appropriate local application form titled Application to Pay Filing Fee in Installments -- Eastern District of Virginia. This form is available from the court Clerk. Debtors filing for bankruptcy protection under Chapter 7 of the bankruptcy code may apply for a waiver of filing fees by submitting the appropriate local application form titled Application for Waiver of the Chapter 7 Filing Fee for Individuals Who Cannot Pay the Filing Fee in Full or in Installments, which is also available from the court clerk.
Location
Debtors seeking bankruptcy protection are required to file their petition in the divisional office in which they reside, where their principal place of business is located, or where their principal assets were located. Debtors whose residence, place of business or location of assets is in the county of Albermarle, Wythe, Allegheny, Wise, Amherst, Washington, Appomattox, Warren, Augusta, Tazewell, Bath, Smith, Bedford, Shenandoah, Bland, Scott, Botecourt, Russell, Buchanan, Rockingham, Buckingham, Campbell, Roanoke, Rockbridge, Carroll, Charlotte, Pulaski, Rappahannoc, Clarke, Craig, Patrick, Pitsylvania, Cumberland, Nelson, Page, Dickenson, Madison, Montgomery, Floyd, Fluvanna, Franklin, Frederick, Giles, Greene, Halifax, Grayson or Henry must file with the United States Bankruptcy Court for the Western District of Virginia. Those debtors in all other Virginia counties must file in the The United States Bankruptcy Court for the Eastern District of Virginia
Exemptions
Virginia rules permit the exemption of certain personal property by householders who file for bankruptcy protection. Personal property exemptions include the Bible, the householder's burial plot, clothing valued up to $1,000, family heirlooms and portraits valued up to $5,000, health aids, household furnishings valued up to $5,000, motor vehicles valued up to $2,000, pets, wedding and engagement rings, and certain other items. These exemptions are in addition to other exemptions which may be prescribed by federal or Virginia state law.
Considerations
Virginia bankruptcy law, in conjunction with federal bankruptcy regulations, is designed to provide debtors with a fresh start by discharging certain debts. Bankruptcy cannot discharge all debts, however. According to BankruptcyInformation.com filing for bankruptcy in the state of Virginia will not eliminate debt or money owed for child support. Court fines, alimony and certain taxes will not be discharged. Bankruptcy has no effect on debts that were not listed on the petition. Bankruptcy will not discharge loans obtained by providing false information to the creditor. Bankruptcy usually does not discharge student loans.
Warning
Bankruptcy is considered a last resort and should not be entered into lightly. Filing for bankruptcy will adversely affect an individual's credit report and will likely make obtaining credit difficult or impossible for a period of time following discharge. Bankruptcy may remain on an individual's credit report for up to 10 years. Individuals who have filed for bankruptcy must disclose that fact if requested to do so when applying for a loan, even after the bankruptcy no longer appears on their credit report.
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