Bankruptcy in Richmond, VA

Struggling with overwhelming debt in Richmond? You’re not alone—and you don’t have to figure it out on your own, either.

Filing for bankruptcy isn’t about giving up—it’s about taking action. For many Richmond residents, it’s the first real step toward restoring stability and peace of mind. With the right plan in place, you may be able to protect your home, pause collections, and discharge unmanageable debt.

If you’re ready to explore your options, a local bankruptcy attorney can walk you through what happens next. Don’t wait for things to get worse—get informed by asking for a referral to a local lawyer today.

Types of Bankruptcy in Richmond, Virginia

Bankruptcy can offer a lifeline when debt becomes too heavy to manage. Whether you’re an individual or a business owner in Richmond, this legal process allows you to wipe out some or all of your financial obligations and start fresh. To qualify, however, you must show the court that your current financial hardship prevents you from meeting your responsibilities.

It’s important to know that not all debts can be erased through bankruptcy. Certain obligations—like unpaid child support, recent tax debt, alimony, and most student loans—are typically non-dischargeable. 

Virginia residents considering bankruptcy can explore Chapter 7, Chapter 13, or Chapter 11. The options depend on income level, assets, and long-term financial goals.

If you file in Richmond, your case will be handled by the U.S. Bankruptcy Court for the Eastern District of Virginia. The local division is located at 701 East Broad Street and serves as the central hub for bankruptcy proceedings in the region.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy can offer a clean break from unmanageable debt—but it’s not the right choice for everyone. Before moving forward, it’s essential to take an honest look at your income and ability to repay. A Richmond bankruptcy attorney can help you determine whether liquidation is your best path forward or if another option would better protect your assets.

This type of bankruptcy is often reserved for individuals who’ve lost reliable income or experienced significant financial setbacks. In exchange for having most unsecured debts discharged, you may be required to give up non-exempt property, including vehicles or real estate. 

In Richmond, you must complete a credit counseling course from an approved provider before filing for Chapter 7. The Eastern District of Virginia requires that this course be completed no more than 180 days prior to your petition. Failing to meet this requirement could result in your case being dismissed—and your $338 filing fee may not be refunded. 

Chapter 11 Bankruptcy

Chapter 11 bankruptcy is often used by Richmond businesses—or individuals with complex financial obligations—who need time to reorganize without liquidating everything they own. It allows debtors to propose a structured repayment plan, typically lasting between four and eighteen months. The benefit? You keep control of your assets while negotiating new terms with creditors.

To initiate a Chapter 11 case in Richmond, you’ll need to file a Voluntary Petition with the U.S. Bankruptcy Court for the Eastern District of Virginia. A standard filing costs $1,738, but that drops to $1,167 if you’re reopening a case. If paying the full amount upfront isn’t feasible, you can submit an application to pay in installments—though approval is at the court’s discretion.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy offers Richmond residents a structured path to manage debt without giving up key assets. This type of filing, often called a wage earner’s plan, sets up a three- to five-year repayment schedule based on your income and financial obligations. A court-appointed trustee reviews your assets, debts, and ability to pay before approving the plan. If successful, some or all of your remaining debts may be discharged at the end of the term.

To move forward with Chapter 13 in Richmond, you must pay the $313 filing fee and submit specific documents either with your petition or within 14 days. Failure to do so can result in your case being thrown out. According to the Eastern District of Virginia, required documents include:

• A completed Chapter 13 repayment plan
• Creditor Mailing List Matrix
• Statement About Your Social Security Numbers
• Voluntary Petition for Individuals Filing for Bankruptcy

The Bankruptcy Process in Richmond, Virginia

There’s rarely a perfect moment to file for bankruptcy, but waiting too long can make the situation worse. If your debts have reached a point where repayment within five years feels impossible, bankruptcy may offer a practical path forward. It can reduce long-term financial strain and help you regain control of your future.

In Richmond, the process begins with gathering accurate financial documentation. This includes your current income, recurring expenses, assets, and outstanding debts. Without a complete financial snapshot, the court cannot evaluate your eligibility. Incomplete or inaccurate paperwork may result in delays or outright dismissal of your case.

Virginia’s exemption laws allow you to protect certain assets during bankruptcy. For example, Richmond homeowners may claim up to $25,000 in homestead equity. In addition, you may exempt up to $5,000 in other personal or real property, or up to $10,000 if you’re 65 or older. You can also add $500 for each dependent, which can be a key factor in safeguarding necessities.

Well before filing, it’s important to tighten your finances. Avoid taking on new debts or maxing out credit cards in the six months leading up to your case. You’ll also need to complete a credit counseling course from a court-approved provider. Once completed, you’ll receive a certificate to include with your petition. Without it, the court will reject your filing—no exceptions.

Work With an Experienced Richmond, Virginia Lawyer

Working with a bankruptcy attorney in Richmond can help you avoid common and costly mistakes. An experienced lawyer can walk you through every step, from determining eligibility to navigating local court procedures.

It’s also wise to explore every option before committing to bankruptcy. For some, alternatives like debt settlement or consolidation may be more appropriate. But if you’re facing foreclosure, wage garnishment, or constant creditor pressure, bankruptcy may be the right next move.

Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!

About the Author

Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.

With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.