I recently lost my job and am having trouble making my mortgage payments. Can I file for Chapter 13 bankruptcy in Virginia if I am unemployed?
As a Falls Church bankruptcy lawyer, I first encourage you to get in touch with an attorney or other trusted professional and have a one-on-one conversation about the specifics of your financial situation. Many people have questions about bankruptcy after suffering a loss of income, and it’s not unusual to find yourself struggling to make mortgage payments each month. Taking action now and talking about solutions with a professional could help you avoid the loss of your home or other complications in the future.
Unfortunately, if you are unemployed, you may not qualify for Chapter 13 bankruptcy in Virginia. When deciding if you are eligible for Chapter 13, the court will look closely at your ability to adhere to a three-to-five-year repayment plan. If you are not currently working, it may be difficult to convince the court that you will be able to make your Chapter 13 payments. However, if you have other income or additional special circumstances, you may want to speak with an attorney about your options for Chapter 13 bankruptcy and stopping foreclosure in Virginia.
Keep in mind, too, that Chapter 7 bankruptcy may be an option for you if you are unemployed. Because Chapter 7 relies on your income to determine eligibility, you are likely to qualify if you are unemployed or underemployed.
If you would like to learn more about your options for Virginia bankruptcy, reach out to an experienced Falls Church bankruptcy lawyer with the Strong Law Firm. You can reach us at 703-350-4241 today, or feel free to use our confidential online contact form to request more information.