Legal Question in Bankruptcy in Virginia

Re: New laws, when will they be initiated, and what will change?

1. A conference committee has been appointed to consider the differences between the house and senate bills, but after Sept. 11 legislative priorities have changed, and congress is less likely to pass such legislation in a recession. But it is still far from defeated. 2. In VA, there are specific items that can be claimed as exempt, but stock is not among them. There is also a catch-all exemption, called a homestead (but it can be used for any asset) of $5000 + $500 per dependent, + $2000 (I believe) for disabled veterans. Also, if the stock is in a 401(k), it is exempt without limit. 3. Incurring debt just before filing is fraud. Whether you lose the house may depend on the equity in it ($12K down may not mean $12K equity, but if it does, you will likely lose it in a Chap. 7); but you may not be able to discharge the debt, and you may even lose your discharge entirely. 4. Your plans will be taken into consideration when considering if you acted fraudulently. 5. As for student loans, if you file but keep paying them, they can't take the bankruptcy into consideration in approving the loans. But if you default, they can deny more loans. Note that student loans are not dischargeable.