Legal matters can be complex, and we understand that you may have questions along the way. Carter Craig’s FAQ section is designed to provide clear, straightforward answers to some of the most common inquiries we receive. Whether you’re navigating a personal injury claim, real estate, bankruptcy, or preparing legal documents, our goal is to help you feel informed and confident at every step.
The most common bankruptcy chapters are:
All are governed by Title 11 of the U.S. Code and handled through the U.S. Bankruptcy Court for the Western District of Virginia.
Yes. You must pass the Means Test under 11 U.S.C. § 707(b) to qualify. This compares your average monthly income to Virginia’s median income for your household size.
Current figures are updated periodically by the U.S. Trustee Program and are specific to Virginia.
Virginia’s state exemption laws apply in bankruptcy (unless you recently moved from another state). Common exemptions include:
Exempt property is protected from being sold by the bankruptcy trustee in Chapter 7.
Yes. Filing bankruptcy triggers an automatic stay under 11 U.S.C. § 362, which immediately stops:
This protection generally remains in effect throughout the bankruptcy unless lifted by court order.
Cases are filed electronically or in person at one of the division offices of the U.S. Bankruptcy Court for the Western District of Virginia, with primary locations in:
Hearings are conducted in-person or by video depending on the division and type of case. Each division follows local rules in addition to the Federal Rules of Bankruptcy Procedure.
Yes, below is a checklist and guide for bankruptcy for Individuals and Small Businesses – Western District of Virginia.
Types of Bankruptcy
Personal Identification
Assets
Debts
Monthly Expenses
5. What Filing Does
Your case will be filed with the U.S. Bankruptcy Court – Western District of Virginia, in one of these divisions:
Visit www.vawb.uscourts.gov for forms, division contact information, and case filing instructions.
Note: Bankruptcy is a serious legal and financial decision. Consulting a qualified attorney familiar with the Western District of Virginia’s rules and procedures is strongly recommended.
Virginia recognizes several legal forms of business, including:
The most popular for small businesses is the LLC, offering liability protection with flexible taxation and management.
To form an LLC under Virginia Code § 13.1-1000 et seq., you must:
Once approved, consider drafting an Operating Agreement, though it is not legally required.
LLCs and corporations offer limited liability, meaning the owners (members or shareholders) are not personally liable for the company’s debts or legal obligations. However, this protection can be lost if:
Virginia courts may “pierce the corporate veil” in such cases.
There is no statewide business license in Virginia, but most cities and counties require local business licenses (BPOL—Business, Professional and Occupational License). For example, Fairfax County or the City of Richmond may require registration before commencing operations. Certain professions also require state licensing or registration.
Depending on structure and activity, your business may owe:
Register with the Virginia Department of Taxation and Virginia Employment Commission as needed.
Here is a side-by-side comparison of LLCs, S Corporations, and Sole Proprietorships under Virginia law, focusing on formation, liability, taxation, compliance, and other key features:
| Feature | LLC (Limited Liability Company) | S Corporation | Sole Proprietorship |
|---|---|---|---|
|
Formation Requirements |
File Articles of Organization with SCC; $100 filing fee |
File Articles of Incorporation with SCC; elect S status with IRS |
No formal filing; exists automatically when an individual starts a business |
|
Governing Law |
Va. Code § 13.1-1000 et seq. |
Va. Code § 13.1-601 et seq. + Subchapter S of Internal Revenue Code |
Common law; not a separate legal entity |
|
Legal Entity Status |
Separate legal entity |
Separate legal entity |
Not a separate legal entity |
|
Owner Title |
Member(s) |
Shareholder(s) |
Sole proprietor |
|
Taxation |
Pass-through by default (can elect corporate tax treatment) |
Pass-through (must meet IRS criteria) |
Pass-through |
|
Self-Employment Taxes |
Members pay SE tax on all profits unless treated as S Corp |
Shareholders pay SE tax only on wages, not distributions |
Subject to self-employment tax on all net income |
|
Virginia Tax Registration |
Required (income tax, sales tax, employer tax, if applicable) |
Required |
Required if collecting sales tax or hiring employees |
|
Local Business License (BPOL) |
Usually required by locality |
Usually required by locality |
Usually required by locality |
|
Annual State Filings |
$50 annual fee to Virginia SCC |
$25 annual fee to Virginia SCC |
None at the state level |
|
Ongoing Formalities |
Flexible – operating agreement optional (but recommended) |
Must adopt bylaws, hold annual meetings, and keep minutes |
No formalities required |
|
Raising Capital |
More flexibility (multiple member classes; investors allowed) |
Limits on number of shareholders and types (max 100 U.S. citizens only) |
Limited to personal resources or loans |
|
Best For |
Small to medium businesses seeking protection and flexibility |
Businesses wanting liability protection and lower SE tax burden |
Very small businesses or sole operators with minimal risk |
Key Takeaways:
Under Virginia law (Va. Code § 46.2-894), you must:
Failure to comply may result in criminal penalties for hit-and-run.
Probably not. Virginia follows the strict doctrine of pure contributory negligence, meaning if you are found even 1% at fault, you are barred from any recovery (per Baskett v. Banks, 180 Va. 482 (1942)). This is one of the most plaintiff-restrictive standards in the U.S.
If you are not contributorily negligent, you may recover:
Virginia imposes a two-year statute of limitations for personal injury claims arising from motor vehicle collisions (Va. Code § 8.01-243(A)). Failure to file within this period will likely bar your claim, regardless of merit.
Yes, you must promptly report the accident to your own insurer, and failure to cooperate may void your coverage. However, be cautious when speaking with the other driver’s insurance company—your statements can be used to deny or minimize your claim. It’s often wise to consult an attorney before giving a recorded statement.
No. Virginia does not require an attorney to buy or sell real estate. However, hiring one is strongly recommended to review the contract, resolve title issues, and assist with closing—particularly for buyers unfamiliar with real estate law or involved in non-standard transactions.
A standard Virginia purchase agreement should include:
Virginia is a “buyer beware” state, so contractual protections matter significantly.
In Virginia, a title company or attorney performs a title search to confirm the seller’s ownership and check for liens, easements, or restrictions. Buyers usually purchase owner’s title insurance to protect against hidden defects. Unlike some states, Virginia does not require judicial foreclosure, so undiscovered liens can have serious consequences.
Virginia Code § 55.1-703 governs residential property disclosure requirements. Sellers must give buyers the “Residential Property Disclosure Statement”, which states that:
Failure to provide the proper disclosure form before contract ratification can allow the buyer to void the contract.
If the seller unjustifiably backs out, Virginia law allows the buyer to pursue:
However, remedies depend on the terms of the contract—so it’s critical to ensure strong legal provisions are in place before signing.
Yes, under Virginia Code § 64.2-403, a handwritten (holographic) will is valid if it is entirely in the testator’s handwriting and signed by the testator, and if two disinterested witnesses testify to the testator’s handwriting after death. However, formal wills are preferred to avoid disputes.
If a person dies intestate (without a will), Virginia’s intestacy statutes (primarily § 64.2-200 through § 64.2-207) determine who inherits. Typically:
No. A will does not need to be notarized to be legally valid in Virginia. However, it is highly recommended to make the will “self-proving” by signing it in front of a notary and two witnesses, as provided in § 64.2-452. This allows it to be admitted to probate without live witness testimony.
Virginia does not impose a hard deadline for probating a will, but timely probate is strongly advised—usually within a few months after death. Delay can complicate estate administration. Once appointed, the personal representative must file inventories and accountings with the Commissioner of Accounts as required by § 64.2-1200 et seq.
Yes, a will may be contested for reasons such as lack of capacity, undue influence, or forgery. Under § 64.2-448, an interested person may file a challenge within one year after the order admitting the will to probate. The challenge must be brought in the circuit court that admitted the will.
Yes, if you are an employee who suffers an injury by accident or an occupational disease arising out of and in the course of your employment, you are generally entitled to benefits under the Virginia Workers’ Compensation Act (Va. Code § 65.2-100 et seq.). Independent contractors and volunteers are typically not covered.
Eligible employees may receive:
You must file a Claim for Benefits with the Virginia Workers’ Compensation Commission within two years of:
Failure to file within this period will generally bar your claim—even if your employer was aware of the injury.
Not unless your employer fails to provide a panel of at least three physicians from which you may choose (Va. Code § 65.2-603). If a panel is offered, you must choose a doctor from that list to have medical bills covered. You may request a change of physician, but only with Commission approval or employer agreement.
Generally no. Under Va. Code § 65.2-307, workers’ compensation is the exclusive remedy for work-related injuries, meaning you cannot sue your employer for negligence. However, you may sue third parties (e.g., equipment manufacturers or negligent drivers) if they caused your injury.
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