Foreclosure & Alternatives Law

Can I Keep My Home If I File Bankruptcy in Virginia?

Virginia has a relatively small homestead exemption provision. A Virginia homeowner is only entitled to protect $5,000 (plus $500 for every dependent) from unsecured creditors if the homeowner files for bankruptcy.
If the homeowner has significantly more equity in the home than that allowed by the homestead exemption then the bankruptcy court may order the property sold in order to satisfy the creditors. Likewise, if the homeowner cannot meet his or her monthly mortgage obligations then the judge will likely order that the property be sold.