Filing Bankruptcy in Virginia without Foreclosure 

It is possible to keep your home after filing for bankruptcy, but the circumstances must be ideal. You must ensure that you only meet the requirements of the chapter you are filing. For example, Chapter 7 filers should remain current on their payments and use a bankruptcy exemption to protect all of their home equity. On the other hand, Chapter 13 filers will be able to catch up on current overdue mortgage payments and keep their homes.

If you still want detailed information on how to keep your house, you can talk to one of the Chapter 7 bankruptcy attorneys from the Law Firm of John W. Lee, P.C. They will help in a fast and affordable method to file bankruptcy as well as keep home. All the lawyers in the office have combined 70 years of experience in legal matters. They know every scenario which makes them special and renowned in their field in Virginia.

There are a few things to consider if you want to keep your home even after filing bankruptcy –

Consider your Home Equity

There are still options for chapter 7 filers to keep their homes. The trustee only examines the equity in your property when determining whether or not your home is exempt under Chapter 7. The difference between the market value of your home and the amount owed on your mortgages or home equity loans is called equity. Since many bankruptcy filers have little or no equity in their homes, therefore their homes are exempt and do not need to be sold during the bankruptcy process.

Can You Afford a Mortgage Every Month?

If you kept your home during the bankruptcy process, you are not obligated to maintain it after the bankruptcy, as long as you continue to pay your mortgage. It’s possible that once you’ve paid off all of your other debts, you’ll be able to afford your mortgage payments without difficulty. If this is the case, you will be permitted to keep your home. If your financial gain is insufficient to cover your mortgage payments, the bank may decide to foreclose on your house. Bankruptcy filers in this situation should carefully consider if they need to continue in their home, as bankruptcy provides them with a one-of-a-kind opportunity to simply leave the house and mortgage with no further consequences.

The Virginia government feels that everyone should pay off their debts. And those who have excessive assets should sell a few to clear their debts instead of filing for bankruptcy. Bankruptcy is to help a Virginia citizen to start fresh, and the federal and state government always has exemptions to help their residents.