Virginia Bankruptcy Laws
The state of Virginia is divided into two bankruptcy districts: Virginia Eastern Bankruptcy Court and Virginia Western Bankruptcy Court. These courts serve the entire state of Virginia . Most people in Virginia file chapter 7 or chapter 13. Businesses and a few individuals whose debts are very large may file under Chap 11 BK, also known as "reorganization".
Virginia Bankruptcy Exemptions
According to the Lawyers.com website, you can choose from one of two exemption schemes: federal or Virginia state. Under the federal scheme, you can keep:
- Your home, including co-op or mobile home, to $20,200
- Life insurance payments for person you depended on
- Life insurance policy with loan value, in accrued dividends or interest to $10,775
- Unmatured life insurance contract, except credit insurance policy
- Alimony and child support
- Pensions and Retirement Benefits, ERISA
- $525 per item in any household goods up to a total of $10,775
- Health Aids
- Jewelry to $1,350
- Lost earnings payments
- Your motor vehicle to $3,225
- Personal injury compensation payments to $20,200, wrongful death payments, crime victims' compensation, public assistance, social security, unemployment compensation and veterans' benefits
- Tools of trade up to $20,200
- Wild Card - $1,075 of any property plus up to $10,125 of any amount of unused homestead exemption
- Married couples may double the amount of the federal exemptions.
Under the Virginia scheme, you can keep:
- Your home, if you do not have more than $5,000 plus $500 per dependent in equity in the house (today's value less costs of sale less payoff balances on all liens and mortgages)
- One motor vehicle, if you do not have more than $2,000 in equity (today's value less costs of sale less payoff balances on all liens and mortgages)
- Wedding and engagement rings
- Family portraits and heirlooms, up to $5,000
- The family Bible
- A burial plot and any pre-need funeral contract, up to $5,000
- Clothes, up to $1,000
- Household furnishings, including beds, dressers, rugs, appliances, sewing machines, pots and pans for cooking, plates and eating utensils, up to $5,000
- Pets
- Professionally prescribed health aids
- Tools, books and instruments of your trade, including motor vehicles, up to $10,000
- Farmers' equipment, including a pair of plow animals with gear; a wagon or cart; a tractor, up to $3,000 in value; two plows, one drag, one harvest cradle, one pitchfork, one rake and two iron wedges; fertilizer and fertilizer material, up to $1,000
- Military uniforms, arms and equipment required by law or regulations
- Personal injury and wrongful death causes of action and proceeds
- ERISA-qualified pension benefits, up to $17,500 per year
- Public employee pensions
- Industrial sick benefit insurance
- Group life insurance benefits
- Cooperative life insurance benefits
- Burial society benefits
- Fraternal benefit societies benefits
- AFDC and aid to the blind, aged and disabled
- Crime victims', unemployment and workers' compensation
- Disabled veterans are entitled to a special exemption, up to $2,000
- At least 75% of your earned but unpaid wages
NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.
New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.
This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.
Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.
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