Virginia Bankruptcy Records

Are Bankruptcy Records Public Information in Virginia?

Yes. Per the Virginia Freedom of Information Act and the federal Freedom of Information Act (FOIA), information and documents created or in the custody of a public agency are subject to public perusal. Likewise, the U.S. Bankruptcy code considers bankruptcy filings as a public affair. Accordingly, bankruptcy records and associated events are generally open to interested members of the public.

Regardless, these laws on public information make provisions for the sequestration of documents that contain sensitive or confidential information such as trade secrets or information that could sabotage national security (11 U.S. Code § 107).

Record seekers looking for an alternative to government sources may obtain bankruptcy records from third-party websites. These non-governmental websites often come with tools that help simplify the search for single or multiple records. However, record availability on third-party sites tends to vary because they’re independent of government sources. To obtain bankruptcy case information using third-party sites, record seekers may need to provide:

• A complete name of the debtor involved in the record
• A bankruptcy case number

Bankruptcy in Virginia

Bankruptcy is a system of statutes and procedures that help provide relief to insolvent debtors while maximizing debt repayment. A bankruptcy case in Virginia is different from the typical civil cases administered by the Virginia judiciary. Federal district bankruptcy courts have sole jurisdictional and administrative authority to process bankruptcy petitions following federal laws and state exemptions. Also, documents filed during a bankruptcy petition are publicly available to interested persons through official record custodians and independent websites.

In bankruptcy, debtors seek to liquidate assets or restructure their debts to pay off creditors. The US Bankruptcy Code dictates the methods and steps of filing for bankruptcy in Virginia. Thus, all bankruptcy cases are under the supervision of bankruptcy courts in federal districts. In Virginia, persons or entities can file for bankruptcy at the bankruptcy court where the residence or business is domiciled. There are two federal districts in Virginia, each with a bankruptcy court overseeing all bankruptcy cases in the districts.

The Bankruptcy Code defines debtors as persons or entities filing for bankruptcy, and it enables debtors to file under the different types of bankruptcy. For example, the Bankruptcy Code allows debtors to liquidate assets by filing a chapter 7 bankruptcy. On the other hand, persons or entities can file for chapter 11 or 13 bankruptcy to restructure and repay most debts over a selected period.

What Do Virginia Bankruptcy Records Contain?

When an entity files for bankruptcy, procedural rules require specific documents as requirements for the petition. In the ensuing proceedings, the debtor and all the parties to the case, including court staff, will create or submit other relevant documents. These collections of documents make up debtors' bankruptcy records in Virginia.

Of course, no two bankruptcy cases are the same. Nevertheless, a requester who obtains a bankruptcy record can expect to find the following information and documents in a typical Virginia bankruptcy record:

• Name of the debtor(s)
• The Chapter of Bankruptcy filed
• Businesses owned or partnership
• Filing status (as an individual or business entity)
• List of creditors
• Filing date
• Meeting of creditors
• Hearing and discharge date
• Name and contact information of bankruptcy attorneys
• Contact information of the bankruptcy administrator/trustee
• Name of the presiding judge
• Schedule of Assets and Liabilities
• Statement of Financial Affairs
• Copies of Tax Returns filed
• Proof of claim from creditors
• Disclosure statement and plan
• Motions
• Complaints and Briefs
• Applications and Affidavits
• Exhibits
• Court orders and Notices
• Case status
• Final judgment/Case disposition
• Transcript of proceedings

How Do You Qualify for Bankruptcy in Virginia?

Individuals, corporations, sole proprietors, partnerships, farmers, and fishers can file for bankruptcy in Virginia. Sometimes, creditors can file for bankruptcy on behalf of debtors. The bankruptcy code enables two or more creditors to force a debtor into bankruptcy if they meet the requirements.

To file for bankruptcy, debtors must qualify for the specific financial requirements of a particular type of bankruptcy. Here’s an example: debtors can be eligible for chapter 7 bankruptcy if their household income is less than the state’s median income for that household. In contrast, chapter 11 bankruptcy is available to persons or businesses that seek to liquidate or reorganize their assets to pay off creditors. Persons, including couples, may qualify for chapter 13 bankruptcy if they owe secured debts less than $1,184,200 and unsecured debts less than $394,725.

How to Get Virginia Bankruptcy Records

Interested persons can get publicly available bankruptcy records in Virginia in person, via mail, or online. The intending requester must choose the most convenient means to get the records of interest.

In-person requests:

Like every publicly available court record, the court clerk is the record custodian of bankruptcy records filed in his/her courthouse. Thus, the intending requester must identify the court where the debtor filed the petition.

Then, he/she must prepare a written request describing the record sought. The request must state details such as the name of the debtor, the county of residence or incorporation, and the case number if known. It is also helpful to provide the presiding judge's name, the case trustee's name, or the representing attorneys'.

The court charges a search fee of $32.00 and $0.50 per page to reproduce copies of the bankruptcy documents. The applicable fees are payable with a certified check, cashier's check, money order, and cash.

In identifying the court of the petition, bear in mind that Virginia comprises two bankruptcy districts. These Eastern Bankruptcy District and Western Bankruptcy District have administrative and jurisdictional authority over specific counties. The Districts are further composed of Divisions - several counties. Consult the Western District directory or the Eastern District directory to identify the county of filing and obtain the court’s contact information. For example, bankruptcy filings from Madison county go to the Lynchburg Division. And the clerk’s office is where interested requesters may obtain physical copies in person.

Mail requests:

Consult the court directory for the mailing address of the bankruptcy court of interest. Then, the requester must enclose the written request containing the necessary details in a self-addressed stamped envelope. Also, attach the acceptable payment form, i.e., certified check or money order. Under certain circumstances, bankruptcy courts make exceptions for persons who cannot afford to pay the search fee and copying fees. Consult the fee schedule for more information on fee waivers.

Online search:

Besides maintaining physical copies of the documents filed during a bankruptcy petition, courts also keep digital copies of the bankruptcy records. The transition to an online repository helps preserve public records and provide broader inclusion to interested public requesters. Bankruptcy courts scan and upload physical filings to the public access to court electronic records system (PACER).

To find bankruptcy records on PACER, visit the PACER website and create a PACER account. The user must provide valid personal information and billing details to set up the PACER account. After signing up, log in to the system and perform a search using the debtor's name or unique case number as search parameters.

PACER charges $0.10 per page viewed, and users may print the documents accessed. Likewise, PACER is also available on the public terminals at the courthouse. And while using the public terminal is free, the same $0.10 fee per page applies.

Pursuant to 44 U.S. Code § 3303, public agencies must transfer archaic public records to the National Archives. At present, this generally applies to bankruptcy records earlier than December 2003. To access archived bankruptcy records, order online or contact the Records Center via email at frc@nara.gov.

Where to Conduct a Free Bankruptcy Case Search in Virginia

The two bankruptcy courts in Virginia oversee bankruptcy cases filed in their jurisdictions and preserve bankruptcy case files. To conduct a bankruptcy case search for free through these institutions, interested persons can visit the clerk's office of the presiding court (the court that heard the case). Inspecting records at the public access terminals provided at the clerk's office attracts no cost. However, requesters must pay for copies.

As a second option, one can call the Multi-Court Voice Case System at (866) 222-8029 to obtain case information for free or search online using PACER (Public Access to Court Electronic Records). PACER costs $0.10 per page to access. However, requesters have a fee exemption to access $30 or less of bankruptcy court records in a quarter.

How Do I Find Out if My Bankruptcy Case is Closed in Virginia?

A bankruptcy case becomes closed when the presiding judge issues a final judgment - not when the court discharges the debt. To know if the bankruptcy case is closed, contact the trustee assigned to the bankruptcy case or visit the clerk's office to confirm the case status. Alternatively, concerned persons may use PACER to check the current status of the bankruptcy case online.

Can a Bankruptcy Be Expunged in Virginia?

No. There are no federal or state laws that permit the expunction of bankruptcy records in Virginia. Per 11 U.S.C. § 107(a), bankruptcy records are public records. While a person may submit an expunction motion, the bankruptcy court has no statutory authority to grant the request. The federal bankruptcy code only grants bankruptcy courts the authority to redact, seal, or restrict public access to documents under extenuating circumstances. Regardless of public sequestration, such documents are still available to authorized entities and persons armed with a court order.

What Type of Bankruptcy Should You File in Virginia?

Persons or businesses in Virginia can file for bankruptcy based on the desired result. An individual may file for chapter 7 bankruptcy if they want total and fast relief from all unsecured debts. However, they may file a chapter 13 if they want to protect their assets from being liquidated. Alternatively, persons may file a chapter 13 if they want to avoid liquidation of assets.

Where and How to File for Bankruptcy in Virginia?

Persons or businesses can file for bankruptcy in Virginia with the clerk of bankruptcy courts at the following locations:

Virginia Eastern Bankruptcy Court
Bankruptcy Clerk
U.S. Bankruptcy Court
1100 East Main Street
Suite 301
Richmond, VA 23219
Phone: (804) 916-2400

Divisional Manager
P.O. Box 19247
Alexandria, VA 22320
Phone: (703) 258-1200

U.S. Bankruptcy Court
1100 East Main Street
Suite 310
Richmond. VA 23219
Phone: (804) 771-8388

U.S. Bankruptcy Court
600 Granby
Room 400
Norfolk, VA 23510
Phone: (757) 222-7500

U.S. Bankruptcy Court
101 25th Street
Newport News, VA 23606
Phone: (757) 595-9805

Virginia Western Bankruptcy Courts
Bankruptcy Clerk
210 Church Avenue
P.O. Box 2390
Roanoke, VA 24010
Phone: (540) 857-2391

Deputy In Charge
P.O. Box 6400
Room 226
1100 Main Street
Lynchburg, VA 24505
Phone: (804) 845-0317

Deputy in Charge
P.O. Box 1407
Post Office Building
Harrisonburg, VA 22801
Phone: (540) 434-8327

Persons or businesses can file for bankruptcy in Virginia via the following general steps:

Under the 2005 Bankruptcy Act, all persons or entities must attend and complete a credit counseling course within six months before filing for bankruptcy. Interested persons may complete a credit counseling course via phone call or in-person visits to an accredited credit counseling agency.

Next, persons filing for chapter 7 or 13 bankruptcy must take a means test to determine their eligibility. The bankruptcy courts use the means test to determine if the debtor’s income is higher or lower than the state’s median income level. Debtors are exempt from taking a means test if their unsecured debt level is low. In addition, veterans are exempt from taking a means test in Virginia.

A bankruptcy case starts when debtors file a voluntary petition with the bankruptcy court where their business or residence is situated. Debtors must provide information on all assets and liabilities and must confirm the data under penalty of perjury. In addition, debtors must provide information on all tax returns for the last two years before filing a petition.

After filing a bankruptcy petition, the court immediately issues “an automatic stay” to prevent creditors from repossessing the debtor’s assets.

Next, the court may appoint a bankruptcy trustee or enable the debtor to assume control of all assets, depending on the type of bankruptcy case.

What are the Downsides of Filing for Bankruptcy in Virginia?

Loss of properties and assets is one of the significant downsides of filing for bankruptcy in Virginia. Individuals filing for Chapter 7 bankruptcy may lose a majority of their properties to pay off creditors. Furthermore, debtors with much equity in their homes may lose it during a chapter 7 bankruptcy, unless protected by the state bankruptcy exemption.

Likewise, filing for any type of bankruptcy depresses the credit score - this reduces the debtors’ chances of getting a loan from credit facilities since they are classified as “risky borrowers”. After filing for bankruptcy, debtors may experience stigma when renting properties from landlords.

In a Chapter 13 bankruptcy case, debtors must repay all or part of unsecured debts over a fixed period. No doubt, debtors are left with low disposable income during the repayment period.

Co-signers to a personal loan are forced to pay part of the debt during bankruptcy unless they apply for bankruptcy exemptions.

Bankruptcy, like most legal procedures, offers both downsides and benefits. Debtors filing for bankruptcy may experience the following benefits:

• The court issues an automatic stay to stop all recollection efforts by creditors;
• Bankrupts grants debtors relief from a significant part of their debts;
• Under Chapter 11 or 13 bankruptcy, debtors or businesses can continue to operate without selling off assets.

What is Chapter 11 Bankruptcy in Virginia?

Chapter 11 bankruptcy is referred to as reorganization bankruptcy since it enables debtors to reorganize debts and repay creditors within a set time frame. Bankruptcy courts appoint debtors as trustees and allow them to decide the best possible way of repaying their debts. Thus, debtors may opt to liquidate their assets to pay creditors or remain in business while repaying the loans over a set period. Debtors filing for a chapter 11 bankruptcy in Virginia must file monthly operating reports and list expected future earnings with the bankruptcy court - this enables creditors to assess the debtor’s assets, income, and expenses after the bankruptcy petition.

Who Can File for Chapter 11 Bankruptcy in Virginia?

Persons and entities are eligible to file for chapter 11 bankruptcy in Virginia. The Bankruptcy Code requires debtors to have secured debts less than $1,000,000 and unsecured debts less than $300,000. Creditors can also force individuals or businesses to file for bankruptcy.

How to File a Chapter 11 Bankruptcy in Virginia?

In Virginia, filing for a chapter 11 bankruptcy starts with a credit counseling course at an approved center. Per U.S.C. Section 109, debtors must take a credit counseling course within 180 days before filing a bankruptcy petition. The Virginia Eastern Bankruptcy Court maintains an online list of all accredited credit counseling centers. According to the Fed. R. Bankr, the court might require debtors to take an instructional course in personal financial management,1007.

To file for chapter 11 bankruptcy, debtors may hire an attorney to fill out the necessary bankruptcy forms. In the absence of an attorney, debtors must file the following documents and information at the bankruptcy court in their locality:

• A voluntary petition for chapter 11 bankruptcy;
• Statement of Social Security Number;
• Corporate Ownership Statement (for non-individual debtors);
• Corporate Resolution (for non-individual debtors);
• List of creditors (must be submitted in a flash drive or uploaded on the bankruptcy courts’ online platforms);
• Official Form 122B (statement of debtor’s monthly income)
• Schedules A through J
• List of Equity Security Holders;
• Statement of Financial Affairs;

Filing fee: Chapter 11 (non-railroad) cost $1,738, Chapter 11 (involuntary) cost $1,738, Chapter 11 (railroad) $1,571. Debtors must fill out the 103A Form to pay the application fee in installments. Debtors filing without the aid of an attorney may pay the filing fee as a money order or cash payment. In contrast, Debtors must submit the above-listed documents within three days of filing a petition at the bankruptcy court. In addition to this, debtors can access more necessary forms and links on the eastern or western district bankruptcy courts’ online platforms.

Benefits of Filing a Chapter 11 Bankruptcy in Virginia

Under chapter 11 bankruptcy, debtors retain control over their assets. Also, they get the freedom to restructure debts and spread payments over a long time. Debtors may also choose to liquidate certain assets or properties to settle debts. Bankruptcy judges also issue an automatic stay to prevent creditors from contacting debtors.

What is Chapter 7 Bankruptcy in Virginia?

Chapter 7 in the Bankruptcy Code refers to a legal process where debtors liquidate non-exempt properties to pay off creditors. In a Chapter 7 bankruptcy or liquidation case, the court appoints a bankruptcy trustee to oversee the sale of the debtor’s non-exempt properties. The bankruptcy trustee pays the proceeds to the creditors in order of priority. In most cases, the chapter 7 bankruptcy petition is a “no-asset case” since the debtor does not have enough non-exempt properties to repay creditors. Filing a chapter 7 bankruptcy helps to discharge unsecured debts like medical bills and credit card loans. However, debtors can not get relief from debts, such as alimony, child support, student loans, and fraudulent debts.

Who Can File a Chapter 7 Bankruptcy in Virginia?

Only individuals can file for chapter 7 bankruptcy in Virginia. Also, debtors must pass the means test to be eligible for a chapter 7 bankruptcy. The means test determines eligibility for chapter 7 bankruptcy by averaging the debtor’s monthly income over the last six months. In addition, Chapter 7 bankruptcy applies to persons with an average monthly income less than the state median income level for that particular household.

• $51,817 for a one-member household;
• $65,510 for a two-member household;
• $75,774 for a three-member household;
• $90,945 for a 4-member household;
• $99,045 for a 5-member household;
• $107,145 for a 6-member household;
• $115,245 for a 7-member household;
• $123,345 for an 8-member household;
• $131,445 for a 9-member household;
• $139,545 for a 10-member household.

How to File a Chapter 7 Bankruptcy in Virginia

Individual debtors filing a chapter 7 bankruptcy are required to take a credit counseling course at a legally approved center within 180 days before the filing date. The list of all legally authorized credit counseling centers is on the courts’ official platform. After completing a credit counseling course, debtors must take the means test before filing for bankruptcy. Persons filing for chapter 7 bankruptcy in Virginia must provide the following documents:

• A voluntary petition for chapter 7 bankruptcy;
• Statement of Social Security Number;
• Corporate Ownership Statement (for non-individual debtors);
• Corporate Resolution (for non-individual debtors);
• List of creditors (must be submitted in a flash drive or uploaded on the bankruptcy courts’ online platforms);
• Statement of Intention (for individual debtors);
• Official Form 2030 (Attorney’s Disclosure of Compensation); 11 U.S.C. § 329 and Fed. R. Bankr. P. 2016
• A copy of the debtor’s tax returns;
• Summary of Assets and Liabilities
• Official Form 122B (statement of debtor’s monthly income)
• Schedules A through J
• List of Equity Security Holders;
• Statement of Financial Affairs;

Debtors can get online copies of the above-listed documents at the bankruptcy court’s online platform. In addition, debtors must pay a $338 filing fee when submitting a petition at the bankruptcy court. Bankruptcy courts in Virginia prevent creditors from repossessing a debtor’s assets or properties via a court order.

What are the Benefits of Filing a Chapter 7 Bankruptcy in Virginia?

A chapter 7 bankruptcy discharges a majority of unsecured debts and gives debtors a fresh start. In addition, a chapter 7 bankruptcy case takes three to four months to discharge all debts. Therefore, debtors get to keep all wages and income after filing a chapter 7 bankruptcy.

How Long Does a Chapter 7 Bankruptcy Last on Records?

In Virginia, chapter 7 bankruptcy petitions remain on public records for ten years after the filing date.

What is Chapter 13 Bankruptcy in Virginia?

By filing a chapter 13 bankruptcy in Virginia, debtors can repay creditors over a three to five-year period. Individual debtors file for chapter 13 bankruptcy to stop foreclosure on mortgaged homes, discharge a wider variety of debts, and keep all properties in the process. Under a chapter 13 bankruptcy, the debtor proposes a debt repayment plan to the court and creditors. Debtors filing for chapter 13 must consider the level of their disposable income, the value of non-dischargeable debts, and the value of non-exempt properties and assets. Once the courts approve the repayment plan, debtors must pay the proposed amount out of their monthly income.

Who Can File a Chapter 13 Bankruptcy in Virginia?

Under the Bankruptcy Code, individuals and sole proprietors can file for chapter 13 bankruptcy under the criteria listed below:

• Individuals, including married couples, must have a stable monthly income higher than the state’s median income level;
• Debtors must owe a secured debt not more than $1,184,200, and unsecured debt, not more than $394,725;
• Debtors must pass the means test to prove their eligibility for chapter 13 bankruptcy;
• Debtors must provide documents detailing federal and state tax payments prior to filing for bankruptcy.

How to File a Chapter 13 Bankruptcy in Virginia?

Bankruptcy laws require debtors to take a credit counseling course at least six months before filing a chapter 13 bankruptcy in Virginia. Note that clerks of bankruptcy courts will only accept credit counseling certificates from approved centers. Besides obtaining a credit counseling course, debtors must also take an instructional class in debt management after filing for Chapter 13 bankruptcy.

Persons or entities filing for chapter 13 bankruptcy in Virginia must have the following documents:

• A credit counseling certificate from an accredited center;
• Voluntary petition;
• Statement on social security numbers (Official 121);
• (Official Form 122C-1) Chapter 13 Bankruptcy Statement of Current Income and Proposed Repayment Duration;
• Chapter 13 Special Notice to Secured Creditors;
• Individual debtors using the services of an attorney must include these forms;
• (Official Form 2030) Attorney’s Disclosure of Compensation;
• (Official Form 2800) Disclosure of Compensation of Bankruptcy Preparer

In addition to this, debtors must provide copies of all payments received two months before filing for bankruptcy. Bankruptcy courts in Virginia maintain an online database where debtors can download the above-listed and other necessary forms.

What are the Benefits of Filing a Chapter 13 Bankruptcy in Virginia?

Chapter 13 bankruptcy enables debtors to retain all assets, including exempt and non-exempt properties. Furthermore, filing a chapter 13 bankruptcy in Virginia is an opportunity to protect homes from foreclosure.

How Long Does a Chapter 13 Bankruptcy Stay on Record?

A chapter 13 bankruptcy record remains on credit score reports seven years from the filing date in Virginia.

What is the Difference Between Chapter 7 and Chapter 13 Bankruptcy in Virginia

The main difference between filing a chapter 7 or 13 bankruptcy is in the outcome of the bankruptcy petition. For example, chapter 7 bankruptcy leads to the liquidation of the debtor’s assets to offset most unsecured debts. In contrast, debtors filing a chapter 13 bankruptcy petition get to retain all assets while paying off creditors from future earnings. The other differences between chapter 7 and 13 bankruptcy include the following:

• There is no debt requirement for filing a chapter 7 bankruptcy, while the debtors must meet the debt requirement before filing a chapter 13 bankruptcy;
• In Chapter 7 bankruptcy, co-signers to the debtor’s loan are liable to pay part of the loan. On the other hand, a chapter 13 bankruptcy protects all co-signers from paying a debtor’s loans.
• Individuals must earn less than the state’s median income level before filing a chapter 7 bankruptcy. In contrast, only those with a higher disposable income are eligible to file a chapter 13 bankruptcy.

What is Bankruptcy Protection?

In Virginia, the court issues bankruptcy protection or automatic stay to stop all collection action being taken against a debtor’s properties by a collection agency, government entity, or creditor. The court issues bankruptcy protection when an individual or entity files for bankruptcy. During bankruptcy, an automatic stay protects debtors from eviction or foreclosure. In addition to this, it temporarily prevents utility companies from disconnecting a debtor’s electricity, water, telephone, or gas service. However, bankruptcy protection can not stop certain tax proceedings, such as tax audits or tax returns. In addition, bankruptcy protections do not stop the IRA or other job-related pension boards from withdrawing money from a debtor’s account to repay pension loans.

What are Virginia Bankruptcy Exemptions

Virginia bankruptcy exemptions protect specific properties from liquidation. Individuals or entities filing for bankruptcy can opt for Virginia bankruptcy exemptions to cover the following types of assets and properties.

• Death benefits of military personnel;
• Personal properties, such as clothing, burial plots, furniture up to $1,000, and permanent disability benefits;
• Pensions;
• Annuity contracts up to $500 every month;
• Workers or unemployment benefits;
• Insurance benefits.

What are the Other Types of Bankruptcy in Virginia?

Individuals and entities can also file for chapter 12 bankruptcy in Virginia. Only family fishers and farmers are eligible to file a chapter 12 bankruptcy in Virginia. To file for a chapter 12 bankruptcy, family farmers must owe less than $4,153,150 in debts, of which 50 percent of the debt must be incurred from the farming operation. In addition, family fishers filing a chapter 12 bankruptcy must not owe more than $1,924,550, of which 80 percent of the debt must be incurred from the commercial fishing operation.

How Much Does It Cost to File Bankruptcy in Virginia?

The cost of filing for bankruptcy in Virginia depends on the type of case the debtor wishes to file. For instance, a Chapter 13 bankruptcy costs $313, whereas a Chapter 7 bankruptcy has a $335 filing fee. The bankruptcy filing fees consist of the base filing fee, admin fee, and trustee fee. To look up other filing fees, interested persons check the fee section on the bankruptcy court websites.

Where the petitioner cannot pay the filing fee at once, they may request to pay in installments. However, all payments must be made within 120 days of the filing date. If the debtor cannot afford the fees, they can apply for a fee waiver. To qualify, debtors must ensure that their total household income is under 150 percent of the federal poverty line. If the court approves the waiver, the debtor can file the bankruptcy petition for free.