Declaring chapter 7 bankruptcy is becoming increasingly diffiicult for residents of Northern Virginia
Fairfax City, Virginia (PRWEB) December 12, 2013
Fairfax bankruptcy attorney Beeraj Patel practices chapter 7 bankruptcy
with years of experience working within the Eastern District of Virginia. The Eastern District of Virginia includes the entire Northern Virginia area. According to the Eastern District bankruptcy courts, 2013 Chapter 7 filings in Northern Virginia were significantly lower than 2012. However, Mr. Patel asserts that these numbers illustrate a less obvious trend of stricter bankruptcy regulation enforcement.
Eastern District of Virginia’s Bankruptcy Courts’ records show a decrease in successful Chapter 7 filings from the year 2012 to the year 2013. Chapter 7 bankruptcy cases in the Eastern District of Virginia dropped from 14,204 to 11,297 - a 20.5% drop in filing Chapter 7 bankruptcy. Some may assume that less people are interested in filing for Chapter 7 Bankruptcy, however, Mr. Patel offers an alternative viewpoint. Mr. Patel states, “Although it is certain there has been a drop in Chapter 7 filings, there are other trends that are less apparent. Chapter 13 cases are increasing and now make up a larger portion of all bankruptcy cases filed in the Eastern District.”
According to the 2012 Report of Statistics Required by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, the amount of Chapter 13 cases between the years 2011 and 2012 increased nationwide. Additionally, Eastern District of Virginia Bankruptcy court records show the percentage of Chapter 13 cases filed in the Eastern District of Virginia increased from 36% in 2012 to 38% in 2013. These figures affirm Mr. Patel’s statement that Chapter 13 bankruptcies are now making up a larger portion of cases filed.
In response to the shifting bankruptcy filing trends, Mr. Patel made the statement, “Many individuals want to file Chapter 7 bankruptcy and have all their consumer debts liquidated. Unfortunately for many individuals, there are instances where filers do not meet the requirements for Chapter 7 Bankruptcy, forcing them to drop their case or move towards a Chapter 13 plan which restructures debts instead of discharging debts.” He went on to state, “The success of a Chapter 7 petition can boil down to the correct interpretation of a comprehensive income assessment form known as the Means Test which frames a filer’s income and expenses. This interpretation can present a challenge for the filer and inexperienced bankruptcy attorneys. Ultimately, when Chapter 7 cases do not qualify under VA guidelines and district courts enforce regulations more strictly, filers are pushed into a Chapter 13 petition which is not desirable.”
Mr. Patel reminds individuals thinking of pursuing Chapter 7 bankruptcy in 2014 be discerning when selecting a bankruptcy lawyer and to research their experience.
Patel Law Firm LLC - is a bankruptcy law firm located at 3900 University Drive, Suite #100, Fairfax, VA, 22030 and is owned by Beeraj Patel, Attorney-at-law. Patel Law Firm focuses on providing quality service in the field of bankruptcy law through affordable and professional assistance.
Direct #: 703 – 955 – 2577