Can I keep my house in a Chapter 11 bankruptcy?

Yes, it is possible to keep your house if you file Chapter 11 bankruptcy in the state of Virginia. Under Chapter 11 bankruptcy laws, individuals, partnerships, and corporations can reorganize their debts and create a repayment plan to keep their assets, such as a house. In order to keep your house, you will need to file a Chapter 11 petition in your local bankruptcy court. Once you file the petition, you will be required to submit a plan that shows how you plan to pay off your debt and keep your house. The court will review the proposed plan and make sure that it meets certain requirements. The plan must be feasible and must provide for payment of at least some of the debts. Additionally, the court must approve that the amount of money allocated to each creditor is fair and reasonable. If the court approves the plan, it will become binding. This means that creditors must accept the payment amounts as outlined in the plan and cannot try to collect more from you. If the plan is unsuccessful and you are unable to make payments, the court may decide that you have to sell your house or other assets in order to pay off your debts. Although bankruptcy can provide relief from debt, it is important to understand that filing for bankruptcy does not clear your debt in full. It is possible to keep your house if you follow the Chapter 11 guidelines and create a payment plan approved by the court.

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