Chapter 7 in VA-keep house?

[Anonymous]

We are filing Ch 7 in VA next week and I am really worried about our house.  We owe 132k on it and it could sell for about 165.  My lawyer says not to worry that the trustee won't take it because after it is sold there will be nothing left for creditors.  Has anyone else been in this situation where there is possible equity after exemption and realtor & trustee fees?  I was very upfront with him and told him we cannot lose the house we will have nowhere to go and he keeps assuring me it is not a problem.  I guess I just need some reassurance?

[StartingOver10]

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@Anonymous wrote:

We are filing Ch 7 in VA next week and I am really worried about our house.  We owe 132k on it and it could sell for about 165.  My lawyer says not to worry that the trustee won't take it because after it is sold there will be nothing left for creditors.  Has anyone else been in this situation where there is possible equity after exemption and realtor & trustee fees?  I was very upfront with him and told him we cannot lose the house we will have nowhere to go and he keeps assuring me it is not a problem.  I guess I just need some reassurance?

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So you are doing the retain and pay option right? No reaffirmation?

If your assessment is right then the trustee might just leave it alone, but really this is something best answered by the attorney you retained.

Are you filing because of the house payment or other debt? I ask because since you do have equity you might consider reaffirmation. But you get the same effect by making sure you make each and every payment on time -even during the Bk.

Search threads here -there are several recent posters that have kept their home by being current at the time of filing and continuing to stay current monthly. Read their stories

[Anonymous]

We are reaffirming the mortgage and cars. We have about $80k in credit card, personal loans and medical bills. Borrowing to pay debt. We want a better life for us and our kids. We just thought we could handle everything but we clearly can't.

[DaveInAZ]

Wow, you have really pitiful BK asset exemptions in VA. Here in AZ the exemption is up to $100k in equity for your personal residence so I thought you're be in the clear, but Googling VA BK exemptions I see you only get $10k as a married couple, plus a whopping $500 for each dependent. But if your BK attorney tells you not to worry, you shouldn't worry. If a Trustee seized it it wouldn't bring $165k because it would be sold off in auction at a much lower price, a trustee doesn't have the time to list it with a realtor and wait months for it to sell for a better price. And especially since you're reaffirming it & cars the trustee should be satisfied knowing those lenders will end up being paid in full.

[Wizdog1]

I know exactly how you feel. I was so worried about my house, attorney advised not to worry that with CA exemption and wild card I would not loose my house although I had equity about 60k. She advised that I would need to pay Wells Fargo during process because they would no longer deduct from my account so I went online and set up transfer from checking to mortgage weekly same amount they were deducting prior to notice. I was in touch with them constantly, they were so nice to me but I'm sure they wished I would stop calling, they assured me they didn't want the house but I still spent many sleepless nights wondering what I would do with 5 pets depending on me. I trusted my attorney and really liked her but very disappointed that she did not follow through with reaffirmation as I had asked. But I thank God everyday I got to keep my house, I love it and I can afford it . Good luck to you, hope you are able to find answers here to able ease your concerns, my attorney returned every call and there were many timely and with compassion.

[Anonymous]

Have you tried getting a few different CMAs done? My real estate agent did two on our condo, one valuing it at about $100k and putting our equity well below our $15k homestead exclusion in IL. The other CMA valued the property at $145k which would have put us over the exclusion.

Agents will sometimes give you a high CMA because they want to convince you to list. Can you shop around?

[StartingOver10]

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@Anonymous wrote:

Have you tried getting a few different CMAs done? My real estate agent did two on our condo, one valuing it at about $100k and putting our equity well below our $15k homestead exclusion in IL. The other CMA valued the property at $145k which would have put us over the exclusion.

Agents will sometimes give you a high CMA because they want to convince you to list. Can you shop around?

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^^^This is partially correct.  Value is determined by use. So if you are a distressed seller that needs to sell and close in 30 days, the value of the property would be significantly less - to get that stated purpose done.

You have to either tell the agent to price it for a 30 day price or disclose that you want a Bk valuation. An experienced agent will know exactly what to do...a noob, not so much.