Virginia Bankruptcy Exemptions

VIRGINIA BANKRUPTCY EXEMPTIONS

The Virginia bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors. 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.

You also may 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 (4^th 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