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 and the equity is covered by your exemptions, you may elect to keep making payments on the loan and 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 proceeds. 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.

ASSET

EXEMPTION DESCRIPTION

LAW SECTION

Homestead

$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

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)

Insurance

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

38.2-3549

38.2-4021

38.2-3811

38.2-4118

51.1-510

38.2-3339

38.2-3549

Miscellaneous

Property of business partnership

50-25

Pensions

Also see wages

City, town & county employees

ERISA-qualified benefits to $17,500 per year

Judges

State employees

51.1-802

34-34

51.1-102

51.1-102

Personal Property

 

 

You must be a householder to exempt any personal property

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

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)

Public Benefits

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

63.1-88

19.2-368.12

60.2-600

65.2-531

Tools of Trade

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

 

 

34-27

 

34-26

44-96

Wages

Minimum 75% of earned but unpaid wages, pension payments; bankruptcy judge may authorize more for low-income debtors

34-29

Wild Card

Unused portion of homestead, of any personal property

$2000 of any property for disabled veterans (you must be a householder)

34-13

34-4.1

For more information on filing bankruptcy in Virginia explore Virginia Bankruptcy Law.