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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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My health is unexpectedly failing, may be disabled soon with

Resolved Question:

My health is unexpectedly failing, may be disabled soon with no recourse to the medical professional who injured me. My question is about declaring bankruptcy in Virginia. I purchased my house for $130.000. I owe $102,000. on the house. I am current on all payments. My debt(s) extra mainly medical, credit cards to fix up house is $33,000.00. Can I declare bankruptcy and keep my house?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
1) What is the current market value of your home? (How much could it be sold for now?)
2) When did you incur the debt to fix your home?
Customer: replied 5 years ago.
I only purchased the farm June, 2010. The real estate market is severely depressed and the farm was on the market for 3 years when I bought it. This county, the unemployment rate is over 20%. I retired as a CPS Investigator with the idea of buying my horsefarm, I did not know I had damage to my back. Now looking at paralysis if I ever ride a horse. The farm is assessed for $68,000. It might eventually sell for $100.000. I have been spending money on a regular basis since buying. Septic service, well service, chimney fell down, heating and a/c duct system under the house had been eaten by rodents and had to be replaced, electric service only works in half of the house.etc. Inspected by friend of the real estate agent who owned the farm; but also the only inspector in the entire county.
Expert:  cfortunato replied 5 years ago.
If your house can sell for only $100,000 or less, you would be able to keep your home, since it is worth less than the balance on the mortgage. You are allowed to keep a home with up to $5,000 equity if your file a Bankrutpcy. When determining whether there is at least $5,000 equity, the cost to sell - around 5% - must also be taken into account.
This means your house would have to be able to be sold for at least $112,000 for the Bankrutpcy court to take it.

I think this is what you wanted to know. If not, please let me know.
Thank you!
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