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.
