Quick Answer
Yes, in most cases. Virginia’s homestead exemption (Va. Code § 34-4) protects equity in your primary residence up to the amount established by that section. In Chapter 7, you must be current on your mortgage. In Chapter 13, you can be behind on payments and still keep your home by catching up through the repayment plan.
By John G. Merna, Esq. | Last Reviewed: June 2026 | The Merna Law Group, P.C.
Protecting their home is the primary concern for most Virginia homeowners considering bankruptcy. The good news is that bankruptcy — especially Chapter 13 — is often the most effective tool available for saving a home from foreclosure.
The Virginia Homestead Exemption
Virginia’s homestead exemption (Va. Code § 34-4) protects equity in your primary residence up to the amount established under that section. Equity is the difference between your home’s value and what you owe on it. If your equity is within the exemption, the bankruptcy trustee cannot force a sale of your home.
Virginia does not allow filers to use the federal exemption scheme (Va. Code § 34-3.1), so you must use Virginia’s exemptions. Current exemption amounts are verified at law.lis.virginia.gov/vacode/title34/.
Additional exemptions exist for Virginia residents under real estate law, federal law, and other state laws. Contact an attorney to fully understand the protection available for your specific property situation.
Keeping Your Home in Chapter 7
Chapter 7 allows you to keep your home if:
- Your equity is within Virginia’s homestead exemption
- You are current on your mortgage payments
- You continue making mortgage payments going forward
Chapter 7 does not cure missed mortgage payments or stop a foreclosure long-term. The automatic stay halts the foreclosure temporarily when you file, but once your Chapter 7 case closes — typically four to six months later — the lender can resume foreclosure if you remain in default. If you are behind on your mortgage and want to keep your home, Chapter 13 is almost always the better path.
Keeping Your Home in Chapter 13 — The Gold Standard
Chapter 13 is the most powerful tool available to Virginia homeowners facing foreclosure. When you file Chapter 13:
- The automatic stay stops the foreclosure immediately — even if the sale is scheduled for the same day
- Your plan spreads the missed mortgage payments (arrears) over three to five years
- As long as you make your ongoing mortgage payment plus the plan payment for arrears, the lender cannot foreclose
- At the end of a completed plan, the arrears are fully cured and your mortgage is current
Lien Stripping in Chapter 13
If you have a second mortgage or home equity line of credit, and your home is worth less than what you owe on the first mortgage, Chapter 13 may allow you to strip the second lien entirely (11 U.S.C. § 1322(b)(2)). The stripped lien is reclassified as unsecured debt and discharged at the end of the plan. This can eliminate a significant mortgage obligation on an underwater property.
What If I Am Already in Foreclosure?
You can file Chapter 13 at any time before the foreclosure sale is completed to trigger the automatic stay and stop it. Even if the sale is scheduled for today, filing before the gavel falls stops it. Call us immediately at 1-800-662-8813 if you are in this situation.
After Bankruptcy — Buying a Home
If you are not trying to save a current home but want to buy one in the future, FHA mortgage programs have defined waiting periods after bankruptcy discharge. Conventional loan programs have different timelines. With consistent credit rebuilding after discharge, homeownership is an achievable goal for most bankruptcy filers within two to four years.
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Last reviewed by John G. Merna, Esq. | June 2026 | The Merna Law Group, P.C. is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
