Maintaining possession of house after bankruptcy

One of the main concerns of those considering filing for bankruptcy is that they will lose their homes. Some are already facing foreclosure, while others are struggling to continue making payments.

Despite what you may have heard, it is possible to keep your home and even your vehicle through the bankruptcy process. In some cases, it may be the only way to do so.

The Automatic Stay Gives Debtors More Time to Address Debt

In both Chapter 7 and Chapter 13 bankruptcy, something called the automatic stay goes into effect as soon as the bankruptcy petition is filed. The automatic stay puts a temporary hold on a creditor’s ability to seek payment. It also halts the foreclosure process for a time. While it is not a permanent solution, it gives you time to organize your debt and come to a payment agreement with the loan holder that is acceptable to all parties.

Keeping Your Home With a Chapter 13 Bankruptcy

In Chapter 13 bankruptcy, filers are typically able to keep most, if not all, of their property. This reorganization bankruptcy examines a debtor’s debts, income, and assets, and a payment plan is made. If you abide by the plan and make timely payments, you can catch up on mortgage payments and keep possession of your home. It is also possible to keep cars and other secured debt in this manner.

Property Retention May Be Available Under a Chapter 7 Bankruptcy

While it is more difficult, it can still be possible to keep your home when filing for Chapter 7 bankruptcy. In Virginia and other states, there are certain exemptions available. If you are current on your mortgage payments (or have the ability to get current quickly) and you meet the equity requirements, it may be possible to claim an exemption and keep your home.

If you or someone you love is struggling financially, bankruptcy could be an effective option. Even if you are worried about losing your home, the experienced Virginia bankruptcy attorneys at Chesterfield Bankruptcy Law may be able to help. Bankruptcy often offers many more options than expected, and our legal team wants to help you address your debt and set your family back on a path to financial freedom. Please take a moment and fill out our contact form. You’ll receive a prompt response from Jeanne Hovenden or David Ostwinkle, who can answer your questions and schedule a free, no-obligation consultation.

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