Q: Will I lose my home after filing chapter 7 bankruptcy if I don't owe anything on it and it's worth $65,000?
My home is paid for and worth about $65,000. I need to file chapter 7 bankruptcy on about $60,000 worth of credit card, doctor bill and vehicle debt. My only income is $1,388/month child support. Will I lose my home? I can't afford to move out and rent.
A: You may have to file a chapter 13 t protect your home completely. Consult a local bankruptcy attorney who can evaluate your situation and help you retain your home.
A: Currently Virginia bankruptcy exemption. However it is my understanding that this is changing. You should consult with a bankruptcy lawyer and see what this new law will mean if it become law. You would probably still loose your house, but you could exempt more of the equity from your house. The new exemption may let you protect up to $25,000 in equity if it becomes law. It could also make it so you could pay less of your debt and still protect your house in a Chapter 13. However, with the drop in income you experienced it may be time to think of letting the house go.
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