Bowen Ten Cardani, PC

Two convenient office locations in Henrico’s West End and Ashland

Call Us For Your Initial Consultation

804-767-6850

Chapter 13 and renting or buying a home

Chapter 13 filers in Virginia should know that getting a home during or after bankruptcy is not impossible. While it can be challenging, renting or purchasing a home can be a reality for many filers.

Chapter 13 is occasionally referred to as a wage earner's plan as it allows people with a reliable source of income enough time to pay off their debts with manageable payments. It also accounts for one third of the bankruptcies filed in the United States. People who have unsecured debts that are less than $394,725 and secured debts that are less than $1,184,200 are eligible to file under this chapter.

The difficulty with renting a home may be mitigated by submitting a letter to a potential landlord and explaining the situation and the circumstances that led to the bankruptcy. Letters of recommendations from bosses, a current landlord and pillars of the community may also be useful to demonstrate one's worthiness of being a renter.

Purchasing a home is also possible for Chapter 13 filers, even though it may be more challenging than trying to rent a home. Pursuing a mortgage through the Federal Housing Administration is ideal for bankruptcy filers as lenders are able to approve mortgages insured by the FHA to filers if certain qualifications have been verified.

Chapter 13 filers have to prove that they have been making bankruptcy payments for at least one year and that their payments have been on time. Filers are also required to verify that the bankruptcy court has given permission for the filer to take part in the mortgage transaction. An attorney can provide more information in this regard.

No Comments

Leave a comment
Comment Information
Email Us For A Response

We’re ready to work with you.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Bowen Ten Cardani, PC

Richmond Office
3957 Westerre Parkway
Suite 105
Richmond, VA 23233

Toll Free: 866-601-7371
Phone: 804-767-6850
Richmond Office Location

Ashland Office
9410 Atlee Commerce Blvd
Suite 2
Ashland, VA 23005

Toll Free: 866-601-7371
Phone: 804-767-6850
Ashland Office Location

Super Lawyers | K. Matthew Long