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Virginia Bankruptcy Exemptions
The Virginia bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Virginia. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments, the equity is covered by your exemptions, and you elect to keep making payments on the loan you generally can keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the assets. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Virginia you may also use certain federal exemptions in addition to your Virginia exemptions. |
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ASSET
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EXEMPTION DESCRIPTION
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LAW SECTION
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Homestead
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$5000 plus $500 per dependent; may also claim rents & profits;
sale proceeds exempt to $5000 (husband and wife may double), Cheeseman
v. Nachman, 656 F. 2d 60 (4th Cir. 1981); unused portion
of homestead may be applied to any personal property
May include mobile home
Must file homestead declaration before filing for bankruptcy
Property held as tenancy by the entirety may be exempt against debts
owed by only one spouse
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34-4,
34-18,
34-20
In re Goad, 161 B.R. 161
(W.D. Va. 1993)
34-6
In re Harris, 155 B.R. 948
(E.D. Va. 1993)
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Insurance
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Accident or sickness benefits
Burial society benefits
Cooperative life insurance benefits
Fraternal benefit society benefits
Group life or accident insurance for government employees
Group life insurance policy or proceeds
Industrial sick benefits
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38.2-3549
38.2-4021
38.2-3811
38.2-4118
51.1-510
38.2-3339
38.2-3549
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Miscellaneous
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Property of business partnership
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50-25
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Pensions
Also see wages
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City, town & county employees
ERISA-qualified benefits to $17,500 per year
Judges
State employees
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51.1-802
34-34
51.1-102
51.1-102
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Personal Property
You must be a householder to exempt any personal property
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Bible
Burial plot
Clothing to $1000
Family portraits and heirlooms to $5000 total
Health aids
Household furnishings to $5000
Motor vehicle to $2000
Personal injury causes of action
Personal injury recoveries
Pets
Wedding and engagement rings
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34-26(1)
34-26(3)
34-26(4)
34-26(2)
34-26(6)
34-26(4) (a)
34-26(8)
34-28.1
34-28.1
34-26(5)
34-26(1) (a)
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Public Benefits
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Aid to blind, aged, disabled, AFDC, general relief
Crime victims’ compensation unless seeking to discharge debt for
treatment of injury incurred during crime
Unemployment compensation
Workers’ compensation
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63.1-88
19.2-368.12
60.2-600
65.2-531
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Tools of Trade
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Horses, mules, (pair) with gear, wagon or cart, tractor to $3000,
plows (2), drag, harvest, cradle, pitchfork, rake, iron wedges (2),
fertilizer to $1000 of farmer (you must be a householder)
Tools, books and instruments of trade, including motor vehicles, to
$10,000, needed in your occupation or education (you must be a
householder)
Uniforms, arms, equipment of military member
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34-27
34-26
44-96
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Wages
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Minimum 75% of earned but unpaid wages, pension payments; bankruptcy
judge may authorize more for low-income debtors
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34-29
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Wild Card
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Unused portion of homestead, of any personal property
$2000 of any property for disabled veterans (you must be a
householder)
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34-13
34-4.1
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For more information on filing bankruptcy in Virginia explore Virginia Bankruptcy Law.
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