Can I keep my house after filing for Chapter 7 Bankruptcy?

Yes, you can keep your house after filing for Chapter 7 Bankruptcy in Virginia. This is known as a “homestead exemption.” The Virginia Code § 34-4 states that a homeowner can keep up to $5,000 in equity after filing for Chapter 7 bankruptcy. This applies to real property, so this applies to houses and other real estate. It is important to note that the $5,000 exemption only covers equity and does not apply to the total value of the property. Your total property value can be much greater than $5,000, and it is still possible to keep your house. You will, however, have to pay the mortgage and other debts, including taxes, in order to keep the property. In some cases, Chapter 7 bankruptcy may be a good option if you are unable to pay your mortgage and want to keep your house. If you file Chapter 7 and your house is worth less than the amount of debt you owe, the debt will be discharged and you could keep your house without having to pay the debt. Ultimately, the decision to file for Chapter 7 bankruptcy and keep your house will depend on your personal financial situation. It is important to consult a qualified bankruptcy lawyer to determine the best course of action.

Related FAQs

Do I need a lawyer when filing for Chapter 7 Bankruptcy?
Will filing for Chapter 7 Bankruptcy stop foreclosure?
Will the trustee liquidate all of my belongings in Chapter 7 Bankruptcy?
Is there a minimum amount of debt required to file for Chapter 7 Bankruptcy?
How does filing for Chapter 7 Bankruptcy affect my taxes?
Are there different types of Chapter 7 Bankruptcy?
What types of assets can be protected in Chapter 7 Bankruptcy?
What type of property can I keep after filing for Chapter 7 Bankruptcy?
Must I list all of my assets when filing for Chapter 7 Bankruptcy?
How long does it take for the bankruptcy filing to be finalized?

Can I keep my house after filing for Chapter 7 Bankruptcy?

Related FAQs

Related Blog Posts