Bankruptcy Disclosures

The Merna Law Group, P.C. is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Users considering bankruptcy acknowledge receipt of the following disclosures as a condition of use of this website. These disclosures are provided for general information. They are not legal advice, and reading them does not create an attorney-client relationship with The Merna Law Group, P.C.

1. Notice to Individual Consumer Debtors Under 11 U.S.C. § 342(b)

Before an individual whose debts are primarily consumer debts commences a bankruptcy case, the clerk of the bankruptcy court is required to give written notice under § 342(b) of the Bankruptcy Code. That notice is issued by the Administrative Office of the United States Courts as Official Form B2010.

Read or download the current official notice here: https://www.uscourts.gov/forms-rules/forms/notice-required-11-usc-ss-342b-individuals-filing-bankruptcy

The summary below is provided for convenience only. If anything in this summary differs from Official Form B2010, the official form controls.

Chapter 7 — Liquidation

Chapter 7 bankruptcy is designed for debtors experiencing financial difficulty who are unable to repay their debts.

If your current monthly income is above the applicable Virginia median income for your household size, you will be required to complete a means test to determine whether you are eligible for this type of relief. If you do not satisfy the means test, you may be precluded from proceeding under Chapter 7 and may instead have the option of converting to or filing under Chapter 13.

In a Chapter 7 case, a trustee is appointed and takes control of property of the bankruptcy estate. You may claim certain property as exempt under Virginia law. Virginia’s exemptions appear in Title 34 of the Code of Virginia, including the homestead exemption at § 34-4 and the poor debtor’s exemption at § 34-26. Virginia has opted out of the federal exemption scheme; see Va. Code § 34-3.1. Exemption amounts are set by the General Assembly and change from time to time. You may exempt only the value of property that is not subject to your creditors’ liens. The trustee may liquidate non-exempt property and distribute the proceeds to creditors according to the priorities set by the Bankruptcy Code.

The purpose of filing under Chapter 7 is to obtain a discharge of existing debts. If you are found to have engaged in certain improper conduct described in the Bankruptcy Code, your discharge may be denied by the court, and the purpose for which you filed may be defeated.

Even if you receive a discharge, some debts are not discharged by law. You may remain responsible for debts such as certain taxes, most student loans, alimony and support obligations, criminal restitution, and debts for death or personal injury caused by operating a vehicle while intoxicated. This list is illustrative, not complete. Whether a particular debt is dischargeable depends on the facts of your case.

Under certain circumstances you may be able to keep property purchased subject to a valid security interest, through options including redemption and reaffirmation. Reaffirming a debt makes you personally liable for it again after your bankruptcy, and a reaffirmed debt survives your discharge. A creditor is not permitted to coerce you into reaffirming a debt. An attorney can explain the options available to you.

Chapter 13 — Repayment of All or Part of the Debts of an Individual with Regular Income

Chapter 13 bankruptcy is designed for individuals with a regular and stable source of income who are temporarily unable to pay their debts but who wish to use their best efforts and good faith to pay them in installments over time, subject to the protections of Chapter 13. You are eligible for Chapter 13 only if your debts do not exceed the dollar limits set in the Bankruptcy Code. Those limits are adjusted periodically.

Under Chapter 13 you must file a plan with the court to repay creditors all or part of what you owe, using future earnings or the disposition or abandonment of certain collateral such as real property and motor vehicles. You are protected from most creditor action upon the filing of your case, but your plan must be confirmed by the court before it takes effect.

Under Chapter 13, unlike Chapter 7, you may generally keep all of your property — exempt and non-exempt — as long as you continue to make payments under the plan. If you do not complete your plan payments, your case may be dismissed or converted, and you may not receive a discharge.

After completion of payments under the plan, your debts are discharged except for domestic support obligations, most student loans, and certain taxes, among others.

Chapter 11 — Reorganization

Chapter 11 is designed primarily for the reorganization of businesses but is also available to consumer debtors. Its provisions are complex, and any decision by an individual to file under Chapter 11 should be reviewed with an attorney. Most Chapter 11 cases are prohibitively expensive for consumer debtors.

Chapter 12 — Family Farmer or Family Fisherman

Chapter 12 permits family farmers and family fishermen to repay their debts over time from future earnings, and is in many respects similar to Chapter 13. Eligibility requirements are restrictive.

Credit Counseling and Debtor Education

With limited exceptions, § 109(h) of the Bankruptcy Code requires individual debtors to complete a credit counseling briefing from an approved agency before filing, and a debtor education course after filing. Failure to complete either may prevent you from filing or from receiving a discharge.

Credit counseling agencies can advise you on managing your money and your debts and may help you develop a repayment plan. Some organizations, however, charge high fees or solicit contributions that leave consumers deeper in debt, and some misrepresent their non-profit status or their affiliation with religious or charitable organizations. The Merna Law Group, P.C. recommends using only an agency approved by the United States Trustee Program. The current list of approved agencies is published at: https://www.justice.gov/ust/list-credit-counseling-agencies-approved-pursuant-11-usc-111

Honesty Is Required

A person who knowingly and fraudulently conceals assets, or makes a false oath or statement under penalty of perjury in connection with a case under the Bankruptcy Code, is subject to fine, imprisonment, or both. All information supplied by a debtor in connection with a bankruptcy case is subject to examination by the Attorney General. Fraud in connection with a bankruptcy case may result in fines, imprisonment, or both, under 18 U.S.C. §§ 152, 1341, 1519, and 3571.

2. Important Information About Bankruptcy Assistance Services from an Attorney or Bankruptcy Petition Preparer

Required by Bankruptcy Code § 527(b).

If you decide to seek bankruptcy relief, you can represent yourself, you can hire an attorney to represent you, or, in some areas, you can hire a bankruptcy petition preparer who is not an attorney.

THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY PETITION PREPARER TO GIVE YOU A WRITTEN CONTRACT SPECIFYING WHAT THE ATTORNEY OR BANKRUPTCY PETITION PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. ASK TO SEE THE CONTRACT BEFORE YOU HIRE ANYONE.

The following information helps you understand what must be done in a routine bankruptcy case so that you can evaluate how much service you need. Although bankruptcy cases can be complex, many procedures are routine.

Before filing a bankruptcy case, you or your attorney should analyze your eligibility for the different forms of debt relief available under the Bankruptcy Code and determine which form of relief is most beneficial to you. Be sure you understand the relief you can obtain and its limitations.

To file a bankruptcy case, documents called a Petition, Schedules, and Statement of Financial Affairs — and in some cases a Statement of Intention — must be prepared correctly and filed with the bankruptcy court. You will have to pay a filing fee to the bankruptcy court.

Once your case is filed, you must attend a meeting of creditors, where you will be questioned under oath by a court official called a trustee. At this meeting you may also be questioned by your creditors.

If you choose to file a Chapter 7 case, you may be asked to reaffirm a debt. You may want help deciding whether to do so. A creditor is not permitted to coerce you into reaffirming your debts.

If you choose to file a Chapter 13 case in which you repay your creditors what you can afford over three to five years, you may also want help preparing your Chapter 13 plan and with the confirmation hearing on your plan, which will be before a federal bankruptcy judge.

If you select a form of relief other than Chapter 7 or Chapter 13, you will want to find out what should be done from someone familiar with that type of relief.

Your bankruptcy case may also involve litigation. You are generally permitted to represent yourself in litigation in bankruptcy court. BE AWARE — only an attorney can give you legal advice and represent you in court.

3. Notice of Mandatory Disclosure to Consumers Who Contemplate Filing Bankruptcy

Mandated by § 527(a) of the Bankruptcy Code.

You are notified as follows:

1. All information that you are required to provide with a petition, and thereafter while your case is pending, must be complete, accurate, and truthful.
2. All of your assets and all of your liabilities must be completely and accurately disclosed in the documents filed to commence your case.
3. Some provisions of the Bankruptcy Code require you to determine and list the replacement value of an asset — for instance, a vehicle or furniture. Replacement value means the value established after reasonable inquiry, as of the date of the filing of your case, without deduction for costs of sale or marketing. For property acquired for personal, family, or household purposes, replacement value means the price a retail merchant would charge for used property of that kind, considering its age and condition.
4. Before your case can be filed, it is subject to means testing. The means test determines whether you qualify to file under Chapter 7 and, if not, how much you must pay your unsecured creditors in a Chapter 13 case. For purposes of the means test, you must state, after reasonable inquiry, your total current monthly income and the amount of all expenses specified and allowed under § 707(b)(2) of the Bankruptcy Code. If you plan to file under Chapter 13, you must also state, after reasonable inquiry, your disposable income as that term is defined.
5. Information that you provide during your case may be audited under the provisions of the Bankruptcy Code. Failure to provide complete, accurate, and truthful information may result in dismissal of your case or other sanctions, including criminal sanctions.

4. Consultation Fees

Most initial bankruptcy consultations at The Merna Law Group, P.C. are provided free of charge. Some matters require a paid consultation, and a fee will apply.

Matters that commonly require a paid consultation include, but are not limited to:

• A prior bankruptcy filing that may affect eligibility or discharge
• Business, self-employment, or investment-property debt
• Pending litigation, judgments, or collection actions requiring analysis
• Unfiled federal or state tax returns
• Recent transfers of property, or significant non-exempt assets
• Questions falling outside bankruptcy, or where the person is not presently considering a bankruptcy filing
• Insufficient information provided in advance to permit meaningful analysis

If a fee applies to your matter, we will tell you the amount before anything is scheduled. No one is charged for a consultation without being told the fee in advance and agreeing to it in writing. Where a consultation fee is credited against attorney fees upon retention, the terms and time limits of that credit will be stated in writing when the consultation is scheduled. A paid consultation is earned when the consultation is provided and is not a guarantee of representation.

5. Debt Assistance Initial Consultation Agreement

1. The client desires to obtain advice and assistance with debt issues and relief from debt, and has scheduled an initial consultation with The Merna Law Group, P.C. Most initial consultations are provided free of charge. Some matters require a paid consultation, and where a fee applies the client will be advised of the amount before the consultation is scheduled. The client understands that in order for the attorney to give meaningful advice, certain detailed financial information must be provided fully and accurately. The client agrees to give accurate, honest, full, and fair disclosure of financial information concerning average income over the previous six months from all sources, monthly living expenses, the type and amount of all debts (including names and addresses of all creditors), and a disclosure of all assets and property owned by the client.
2. The attorney agrees to interview the client and give advice and counsel to assist the client in making decisions about debt problems, the possibility of filing bankruptcy, selecting the appropriate chapter of bankruptcy, and how a bankruptcy case may help or hurt the debt problems of the client. The initial consultation will consist of a review of the client’s current monthly income, completion of a monthly budget of regular expenses, a preliminary analysis of qualification for certain chapters of bankruptcy, a preliminary analysis of the client’s debt statements, and a recommendation.
3. The initial half-hour consultation and interview will be performed by an attorney. In the event that the client decides to file a bankruptcy case, a new written agreement must be signed by the client and the attorney, which will supersede this agreement with respect to attorney fees and expenses. That new agreement will also provide a detailed explanation of the services performed or to be performed by The Merna Law Group, P.C.
4. A consultation — whether free or paid — does not create an attorney-client relationship and is not a guarantee that the firm will agree to represent the client. An attorney-client relationship is formed only after the firm has checked for conflicts, the client has signed a written engagement agreement, and the firm has agreed to undertake the representation. Until that occurs, the firm is not responsible for any deadline, statute of limitations, foreclosure sale date, garnishment, repossession, hearing, or other time-sensitive matter affecting the client.
5. Any analysis or recommendation given during an initial consultation is preliminary and is based solely on the information the client provides. Information that is incomplete, inaccurate, or later discovered will change the analysis. No chapter eligibility determination, means test result, exemption analysis, or fee quote given at an initial consultation is final until confirmed after a full document review.
6. ALL INFORMATION PROVIDED BY THE CLIENT WITH A BANKRUPTCY PETITION MUST BE COMPLETE, ACCURATE, AND TRUTHFUL. ALL ASSETS AND ALL LIABILITIES ARE REQUIRED TO BE COMPLETELY AND ACCURATELY DISCLOSED IN THE DOCUMENTS FILED TO COMMENCE THE CASE. THE REPLACEMENT VALUE OF EACH ASSET AS DEFINED IN 11 U.S.C. § 506 MUST BE STATED IN THOSE DOCUMENTS WHERE REQUESTED, AFTER REASONABLE INQUIRY TO ESTABLISH SUCH VALUE. INFORMATION PROVIDED DURING THE CASE MAY BE AUDITED, AND FAILURE TO PROVIDE SUCH INFORMATION MAY RESULT IN DISMISSAL OF THE CASE OR OTHER SANCTIONS, INCLUDING CRIMINAL SANCTIONS.

6. No Guarantee of Outcome

The Merna Law Group, P.C. does not guarantee any particular result in any bankruptcy case or other matter. Past results do not predict or guarantee future outcomes. Whether you receive a discharge, retain particular property, qualify under a particular chapter, or obtain confirmation of a Chapter 13 plan depends on your individual facts, on the accuracy and completeness of the information you provide, and on determinations made by the bankruptcy court, the trustee, the United States Trustee, and your creditors — none of which are within the firm’s control.

Statements made on this website about timeframes, costs, or likely outcomes are general in nature and do not apply to any specific case.

7. Costs Payable to Others

Attorney fees are separate from amounts payable to the court and to third parties. In addition to attorney fees, a bankruptcy case typically involves:

• A filing fee payable to the United States Bankruptcy Court, set by Congress and subject to change. Current filing fees are published by the court and are the same at every firm.
• A credit report fee.
• Credit counseling and debtor education course fees, payable to the approved agency you select.

Any fee amount stated on this website is an estimate for general reference and is subject to change. Fee amounts stated on this website are not an offer. Actual fees and costs are set in a signed written agreement.

8. Effect on Credit and on Prior or Future Filings

A bankruptcy filing is a public record and will appear on your credit report. The length of time a bankruptcy remains on a credit report is determined by federal law and by the credit reporting agencies, not by this firm.

Prior filings affect your eligibility. The Bankruptcy Code limits how soon after a prior discharge you may receive another one, and the applicable period depends on which chapter you filed previously and which chapter you file now. If you have filed a bankruptcy case before, tell us before your consultation — it materially affects the analysis.

Filing a new case after a prior case was dismissed may also limit the duration or availability of the automatic stay.

9. Communications Through This Website

Nothing you submit through this website, a contact form, a chat feature, an intake form, or an automated tool is confidential or protected by the attorney-client privilege, and submitting information does not create an attorney-client relationship. Do not send confidential, sensitive, or time-sensitive information through these channels. If you have an urgent matter — a scheduled foreclosure sale, a garnishment, a hearing date, or a repossession — call 1-800-662-8813 rather than relying on a web form or email.

The firm is not responsible for the failure, delay, interception, or misdelivery of any electronic communication.

Text messages and calls. If you provide a telephone number through this website, you consent to receive calls and text messages from the firm at that number, including appointment confirmations and reminders, which may be sent using automated technology. Consent is not a condition of receiving legal services. Message and data rates may apply. You may revoke consent at any time by replying STOP to a text message or by calling 1-800-662-8813.

10. Disclaimer Regarding Credit Recovery Program and Other Services

The Merna Law Group, P.C. reserves the right to withdraw, change, or modify any service offered through this website or other advertising media that is not specifically addressed in a retainer contract signed with this firm. A user is not entitled to any advertised service without a specific written agreement signed with an authorized agent of The Merna Law Group, P.C.

The Merna Law Group, P.C. does not warrant, guarantee, or assert the effectiveness of its credit recovery program. That program is delivered “as-is.” The firm supports effective measures to improve a credit score after the filing of a bankruptcy; however, given the multitude of factors affecting a credit score, the firm does not warrant any outcome.

[ATTORNEY DECISION 1 — ARBITRATION] See note at the end of this document.

11. Student Loan Debt

Any debt, including student loan debt, may carry a tax liability if the full balance is settled, forgiven, or deemed uncollectible by the holder of the debt. You should consult a tax professional to determine whether you will have a tax liability. The Merna Law Group, P.C. does not provide this analysis as part of its services.

Any representation regarding the resolution of your student loan debt assumes that you will diligently review the status of every student loan annually and submit the necessary extensions and updates to continue the programs in which you are enrolled. Our services do not extend to subsequent-year maintenance, reminders, updates, or resubmission unless a specific retainer is executed for those services.

In many situations you must recertify each year that you qualify for a payment status. If you change your tax filing status, earn more money, reduce your family size, or experience other changes, your eligibility for a negotiated monthly payment may not continue. Please consult us before making any change that may affect your ability to renew the program and payment we assist you in qualifying for.

If you default on a federal student loan, collection costs, fees, and penalties may be assessed against you, and you may be subject to administrative wage garnishment and offset of tax refunds and federal benefits. The amounts and procedures are set by federal law and regulation and are subject to change.

We are not offering debt settlement or credit repair. We are offering a Student Loan Debt Management Program.

You should be aware that a security clearance can be denied or not renewed if your student loans are in default.

While we may assist clients with student loan debt matters arising outside the Commonwealth of Virginia as an administrative task, we are not providing legal advice regarding state-specific issues in other states, and we are not practicing law or advertising the practice of law in any state other than Virginia.

No attorney-client relationship is created or intended without a signed retainer agreement bearing the signatures of all parties. If there is a co-signer on any loan being addressed, we do not represent or warrant that the co-signer will avoid negative consequences from the resolution we suggest.

12. Scope of Practice and Referrals

The attorneys of The Merna Law Group, P.C. are licensed in the Commonwealth of Virginia and practice before the United States Bankruptcy Court for the Eastern District of Virginia. Nothing on this website is an offer to practice law in any jurisdiction where the firm’s attorneys are not licensed.

The firm does not accept every matter. If we decline your matter or if it falls outside our practice areas, we may suggest that you consult another attorney. Any such suggestion is a convenience only. The firm does not endorse, supervise, or accept responsibility for the services of any attorney or organization to whom you are referred, and the firm receives no compensation for any referral.

13. Responsibility for Content; No Waiver

Attorney John G. Merna is designated as the person responsible for the content of this website in compliance with the Rules of the Virginia State Bar.

Any term or condition listed here applies to users of this website on the assumption that they are not clients. Any term or condition listed here that is inconsistent with the Rules of Professional Conduct of the Virginia State Bar will be considered inapplicable to any client upon the signing of a retainer agreement with The Merna Law Group, P.C.

In the event an attorney-client relationship is established, nothing contained in these Bankruptcy Disclosures, the Terms of Use, the Disclaimer, or otherwise advertised on this website shall constitute a waiver of liability for legal malpractice or of the application of the Virginia Rules of Professional Conduct.

Last updated: September 23, 2026

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