Will You Lose Your Home If You File For Bankruptcy?
As a resident of Virginia who is struggling to keep up with your bills, you may be looking for ways to make your finances more manageable, and you may be considering whether filing for bankruptcy might bring you some relief. If you are like many other people facing similar circumstances, though, you may have serious concerns about whether you could potentially lose your home, should you move forward with filing.
So, how can you tell if you could potentially lose your home when you file for bankruptcy? According to the Washington Post, there is no single, clear-cut answer to whether you will lose your home after filing for bankruptcy, because the answer will ultimately depend on certain variables. One such variable involves the type of bankruptcy filing you choose to pursue.
Say, for example, you file for Chapter 7 bankruptcy, which is a type of bankruptcy that helps lower-income individuals get their finances back on track. Should you do so, the question of whether your home will undergo seizure will depend on how much equity you have in it and how that equity stacks up against the exemption amount allowed in your state.
If you file for a Chapter 13 bankruptcy, on the other hand, you can most likely keep your home, as long as you continue to make regular payments toward it and otherwise abide by the terms of your repayment plan. In some cases, if you plan to pursue a Chapter 7 bankruptcy, but then find out you would likely lose your house, should you move forward, you may be able to switch to a Chapter 13 filing instead.
This copy is meant for educational purposes only and is not a substitute for legal advice.