BANKRUPTCY & YOUR HOME
You can keep your home in bankruptcy. Most people do. This guide breaks down the automatic stay, Chapter 13, and Virginia's homestead exemption in plain English, with links to the real rules behind each one.
A lot of people think bankruptcy means losing everything. That's not true. Most people who file for bankruptcy in Chesterfield keep their home. The law is built to protect what your family actually needs, not to take it away. This guide shows you how to keep your home in bankruptcy, step by step, using plain facts from federal and Virginia law.
The moment you file for bankruptcy, something called the automatic stay kicks in automatically, without waiting on a judge's approval. The stay orders your creditors to stop calling, stop suing, and stop trying to foreclose on your home, which gives you breathing room and the time you need to build a realistic plan for your home.
The stay is strong, but it has limits. If your landlord already won an eviction case before you filed, the stay may not stop it, and some government actions, like a license review, can continue as well. If you filed bankruptcy before and the case was dismissed, your new stay may also be shorter than usual. This is why most people pair the automatic stay with a real repayment plan, like Chapter 13.
Chapter 7 is usually faster. It can wrap up in a few months. But first you have to pass a means test. This test compares your income to Virginia's median income for your household size. Chapter 13 has no income cap at all. It's often the better fit if you need to catch up on a mortgage or car loan.
At Chesterfield Bankruptcy Law, our attorney can run the numbers for your exact situation and tell you which chapter protects your home best.
A free case review can tell you which chapter protects your home, and how fast the automatic stay can pause a scheduled foreclosure.
A QUICK MYTH CHECK
Fact: Most people keep their home, especially with a Chapter 13 repayment plan.
Fact: Virginia's homestead exemption protects a set amount. If your equity is higher, Chapter 13 can still protect your home.
Fact: Income limits only apply to Chapter 7. Chapter 13 has no income cap at all.
VERIFY IT YOURSELF
We link straight to the federal and Virginia rules behind the facts on this page. Read them in their own words, and confirm nothing has changed since we published this.
An official overview of the repayment plan process, plan length, and how a mortgage is treated.
Fact: Virginia's homestead exemption protects a set amount. If your equity is higher, Chapter 13 can still protect your home.
The current dollar amounts for Virginia's homestead exemption, kept up to date by the Virginia Law Library.
Current median income figures used for the Chapter 7 means test in Virginia.
COMMON QUESTIONS
Most people don’t. Chapter 13 lets you catch up on missed mortgage payments over three to five years while you keep your home. Chapter 7 can also protect your home if your equity fits within Virginia’s homestead exemption and you’re current on payments. Which one fits you depends on your income, your equity, and how far behind you are.
Yes, in most cases. The automatic stay takes effect the moment you file, even if a sale is set for that same day. It’s not permanent on its own, though. You still need a repayment plan or another fix to keep your home going forward.
Virginia’s homestead exemption protects up to $50,000 in your home equity. That’s on top of a separate $5,000 general exemption ($10,000 if you’re 65 or older), plus $500 for each dependent. These numbers are set by state law and go up with inflation every three years starting in 2027.
In Chapter 7, a trustee only sells your home if a sale would actually pay creditors something after your mortgage, your exemption, and selling costs. If it wouldn’t, the trustee usually leaves the home alone. If your equity is genuinely high, Chapter 13 is often the safer path, since it lets you keep the home while paying that extra value over time.
In most cases, yes. Virginia law protects a set amount of vehicle equity. Chapter 13 is often used to catch up on a car loan while you keep the car, the same way it works for a mortgage.
TAKE THE FIRST STEP
If foreclosure is already on the calendar, or you just want to understand your options, a short call can tell you what's realistic for your home and your finances. No obligation, no judgment.
3601 W. Hundred Road, Unit 2, Chesterfield, VA 23831
We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.