I have too much equity in my home for chapter 7. And I don’t want to lose my home. I am making payments on the mortgage and I’m up-to-date and will be able to remain up-to-date. I own one car with no loan. If I have to file bankruptcy, what are my options?
answered on Nov 27, 2023
Your otherwise judgment-proof periodic income should count to make you eligible for Ch. 13 relief.
A Ch. 13 plan needs to provide your creditors with the "indubitable equivalent" of the amount they'd get in a Ch. 7 proceeding, at a minimum. And at least in my PA district,... View More 
I have too much equity in my home for chapter 7. And I don’t want to lose my home. I am making payments on the mortgage and I’m up-to-date and will be able to remain up-to-date. I own one car with no loan. If I have to file bankruptcy, what are my options?
answered on Nov 27, 2023
Yes, social security income and a pension count as regular income for eligibility for chapter 13 relief. You should meet with an experienced bankruptcy lawyer to discuss your options. In Virginia, real estate held in a tenancy by the entireties is exempt or protected from a creditor of either... View More
I have too much equity in my home for chapter 7. And I don’t want to lose my home. I am making payments on the mortgage and I’m up-to-date and will be able to remain up-to-date. I own one car with no loan. If I have to file bankruptcy, what are my options?
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answered on Nov 27, 2023
Yes, you can still file for Chapter 13 bankruptcy in Virginia even if your income is solely from Social Security and a pension. Chapter 13 is designed to help individuals with regular income to develop a plan to repay all or part of their debts. Given your situation, this might be a suitable... View More
65 years old. Live in Virginia. Own home with mortgage and would keep current on payments. Own one car with no loan. No savings.
Would I be judgement proof?
My home equity is $300K. But isn’t a primary residence exempt from unsecured debt creditors?
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answered on Nov 26, 2023
Your Social Security and pension are exempt and, depending on where you live, you are eligible to claim a homestead exemption under your state law. Same with your car. If your equity is less than your homestead exemption, you are probably judgment proof. However, that will not keep your creditors... View More
65 years old. Live in Virginia. Own home with mortgage and would keep current on payments. Own one car with no loan. No savings.
Would I be judgement proof?
My home equity is $300K. But isn’t a primary residence exempt from unsecured debt creditors?
answered on Nov 27, 2023
You should talk with a bankruptcy lawyer in the state you reside. Whether you can file a ch. 7 and hang on to your house is questionable. Most states do not allow you to retain a large amount of equity. VA. looks at tenancy by entirety ownership and whether your wife is a joint creditor with you.... View More
65 years old. Live in Virginia. Own home with mortgage and would keep current on payments. Own one car with no loan. No savings.
Would I be judgement proof?
My home equity is $300K. But isn’t a primary residence exempt from unsecured debt creditors?
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answered on Nov 27, 2023
If you stop paying unsecured debts, creditors may take legal action against you, such as filing lawsuits to recover the owed amount. However, in Virginia, Social Security benefits and pensions are generally protected from garnishment by unsecured creditors, which means your income sources might be... View More
I filed for bankruptcy some years ago and I also had garnishment. Once the bankruptcy is filed, does the garnishment stop? And am I still liable for payments even if the bankruptcy is approved?
answered on Nov 2, 2023
At the moment you file for bankruptcy relief, regardless of Chapter, an automatic stay against any action against you or your (the Estate's) property is estopped, and usually courts say "of no legal effect".
But the key to what happens thereafter hinges upon whether the... View More
I filed for bankruptcy some years ago and I also had garnishment. Once the bankruptcy is filed, does the garnishment stop? And am I still liable for payments even if the bankruptcy is approved?
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answered on Nov 4, 2023
When you file for bankruptcy, an automatic stay immediately goes into effect. This stay halts most collection activities, including garnishments. The creditors are then prohibited from continuing with garnishment actions during the bankruptcy process. If your bankruptcy petition is approved and the... View More
I spoke to an attorney from New Mexico and he suggested I file bankruptcy in Colorado where I live most of the time. He advised me that it may be possible to file bankruptcy in Colorado under the Homestead Laws for a lien filed from an inaccurate boundary survey judgment. I have questions and need... View More
answered on Aug 8, 2023
Your residency is more where you intend to reside as where you actually spend time. There is a legal footprint of your residency. Where you vote, where you keep most of your assets, what you give out as your address, driver's license, car registrations. I think you confuse the issue of where... View More
I am a U.S. citizen currently in a Ch 13 bankruptcy. My spouse is not included as a debtor. I am the primary listed on the joint returns. We have no unfiled returns. My spouse has a naturalization interview coming up, and we want to know how these taxes in repayment will affect the outcome of the... View More
answered on Apr 12, 2023
11USC525 a says "a governmental unit may not deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or other similar grant to, condition such a grant to, discriminate with respect to such a grant against, deny employment to, terminate the employment of, or... View More
I am a U.S. citizen currently in a Ch 13 bankruptcy. My spouse is not included as a debtor. I am the primary listed on the joint returns. We have no unfiled returns. My spouse has a naturalization interview coming up, and we want to know how these taxes in repayment will affect the outcome of the... View More
answered on Apr 12, 2023
You should consult with an immigration attorney about this issue. A family or employment-based change of status petition includes a USCIS form I-864 Affidavit of Support from a sponsor or petitioner. The purpose of the form is to ensure the immigrant has adequate means of financial support and... View More
Auto has a few thousand dollars in equity which I think is exempt. I recall there being an issue with both types of loans with the same lender. If so, is it a state law specific to Virginia?
answered on Feb 15, 2023
I practice in PA, and occasionally in DE and NJ, not VA (so not familiar with VA state law).
You do not say whether you are in a Ch. 7 or Ch. 13 bankruptcy proceeding. There are differences in what a debtor can do about secured debt, generally. Note that there is a specific provision,... View More
Auto has a few thousand dollars in equity which I think is exempt. I recall there being an issue with both types of loans with the same lender. If so, is it a state law specific to Virginia?
answered on Feb 15, 2023
I agree that cross collateralization muddies the issue. Yes you can reaffirm the secured debt but may find the value of the car makes some of the unsecured debt secured which may have reaffirm a small portion that now is secured by a value greater than the secured car loan to the value of the car.... View More
Auto has a few thousand dollars in equity which I think is exempt. I recall there being an issue with both types of loans with the same lender. If so, is it a state law specific to Virginia?
answered on Feb 15, 2023
It depends on the type of lender. Credit unions have greater rights than banks. Most credit unions have a cross-collateralization clause in their loan agreements. That makes any debt owed the credit union secured by collateral given on any other debt, so the credit union may not release the... View More
Can you make payments on this
answered on Jan 3, 2023
Most lawyers charge around $1500 for a simple case. There's filing fees and a required class so the totals my be around $1850.
Many lawyers will work with you on payments.
Can you make payments on this
answered on Jan 4, 2023
You should consult a competent bankruptcy lawyer near you who can correctly analyze your financial situation and help you make the right decision. Costs roughly are probably $1500 to $2500, depending on the amount of work to be done.
I was contacted by a law group saying I owed on an old credit card debt. They're saying the last time they tried to contact me was 2016 from a card I obtained before 2010. It was a JCPenny store card. They're threatening garnishment. I paid off all my debts before I purchased my home in... View More
answered on Dec 9, 2022
Credit card lawsuits typically involve two different jurisdictions - the issuer's home state and the borrower's home state, and the shorter of the two may apply in Virginia. In Virginia Code Section 8.01- 232, there are three conditions on the enforceability of a waiver of the right to... View More
Voluntary dismissal after 2+ years in plan. Tried to restablish payment plan for auto loan. They claim I fell further behind after I filed because they didn't receive timely plan payments from the trustee and charged it off. Now they are threatening repossession and say I am 9 months more... View More
answered on Nov 14, 2022
A "charge-off" of a loan by the financial institution is often misconstrued. It in no way affects the borrower's legal obligation to repay the debt; it is only an in-house accounting entry and loan classification that affects the bank's capital/lending limits and is usually... View More
Voluntary dismissal after 2+ years in plan. Tried to restablish payment plan for auto loan. They claim I fell further behind after I filed because they didn't receive timely plan payments from the trustee and charged it off. Now they are threatening repossession and say I am 9 months more... View More
answered on Nov 14, 2022
An important issue in chapter 13 cases is whether to pay the vehicle loan directly outside the plan as a long-term debt, or in the plan by the trustee as a secured claim. The downside of putting it in the plan is an early dismissal produces an immediate default. Unless you are cramming down the... View More
Is exemption granted by VA Code Ann. 65.2-531? I have been receiving workers comp for many years and everything I have has been purchased with this income.
answered on Nov 3, 2022
Yes, your earnings obtained through Workers' Compensation are exempt from execution by creditors based on the statute you reference. Since the Commonwealth of Virginia does not allow its citizens to use the federal exemptions, the benefit is clear that Virginia's protection of... View More
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