I’m in a Chapter 13 Bankruptcy But Can’t Make the Payments. – Daniel

“Dear Lewis,

I filed bankruptcy (chapter 13) about 14 months ago and the payments were set very high (around 890 a month) and have had trouble ever since making payments. I have a mortgage that is about 7 or 8 years old and i had put my 4 acres of land up as collateral. I am a little behind on it but can probably catch it up but i am almost 3 payments behind on the chapter 13 and payments are now 930 or so. The land is mostly mountain land and there is a double wide as the mortgage. Land and house is currently appraised at about 85 to 90 thousand but not worth that. In southwest Virginia and lost job about 3 weeks ago. I have a wife and two children 10 and 6.

Can i go to ch 7 and will they take my land or what? What is an option for me?


Dear Daniel,

I would imagine you probably qualify for chapter 7 now based on the loss of your job. But qualifying for chapter 7 by income purposes is one issue. You may need to be in chapter 13 to protect an asset that cannot be fully exempted.

I do not know what Virginia’s homestead exemptions are. You need to speak to a bankruptcy attorney to determine the value of your property, the mortgage encumbering the property, and available Virginia exemptions to cover the property.

As I stated, your income may qualify you for a chapter 7. But you may have a need to be in chapter 13, but possibly a reduction in your plan payment because of the loss of income.

Good luck!

My name is Lewis Roberts and I’m an attorney licensed in Florida and Georgia. My practice focus is consumer bankruptcy, real estate issues/closings, and mortgages. I also have Florida real estate broker and mortgage broker licenses. I am a proud member of the National Association of Consumer Bankruptcy Attorneys (NACBA), National Association of Consumer Attorneys (NACA), and a graduate of Max Gardner’s Bankruptcy Boot Camp. I enjoy helping people with decisions that impact their financial well-being.

Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.

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