Virginia Bankruptcy Exemptions
Most People Lose Little or Nothing in Filing for Bankruptcy
A common myth about bankruptcy is that you will lose everything you own. In reality, almost the opposite is true. Virginia's bankruptcy exemptions are not as generous as in other states, but the majority of my clients are able to keep all of their property.
Whether you will have to forfeit assets depends on what type of bankruptcy you file and your specific circumstances. My goal as your attorney is to maximize the property eligible for your exemptions, and my knowledge of the law enables me to push the boundaries without getting your petition kicked out.
Free Bankruptcy Consultation • 703-684-2000
My name is Nathan D. Baney. I have represented hundreds of people in Alexandria, Fairfax and northern Virginia, as well as Washington, D.C. Call me for answers to your questions and experienced representation.
Which Assets Can I Keep in a Chapter 13 Bankruptcy?
In a Chapter 13 bankruptcy, you are agreeing to repay debts. With careful planning, nearly everything is spared. Most importantly, you can save your home from foreclosure if you are behind on the mortgage. The bank will not foreclose on your house and cars if you are able to continue making those payments.
Which Assets Can I Save in a Chapter 7 Bankruptcy?
In a Chapter 7 bankruptcy, you essentially turn over your estate to a trustee. The trustee has the power to liquidate (sell) your assets to pay your creditors. However, there is a long list of exempted property:
— Homestead exemption: $5,000 in equity for each householder ($10,000 per couple), plus $500 per dependent.
— Personal property:
- Vehicles (up to $2,000 in equity each)
- Wearing apparel (up to $1,000 current value)
- Household furnishings (not to exceed $5,000)
- Family heirlooms
- Wedding and engagement rings
- Medically Prescribed Health aids (wheelchairs, etc.)
— Personal injury settlements or proceeds from pending personal injury lawsuits
— Unemployment or workers' compensation benefits
— Retirement accounts: Virtually all pension, 401(k) and ERISA-qualified plans are protected
— Tools of a trade: up to $10,000 (including vehicles needed for an occupation)
— Property of a business partnership
— Wild card: Any unused portion of the homestead exemption can be applied to personal property, such as a car, cash or savings.
It may be necessary to file a Chapter 13 instead of Chapter 7 if your home is paid off or you have substantial equity, or if you have classic cars, expensive jewelry, vacation property or other assets that are not exempted.
Let's Discuss Your Specifics
As an experienced lawyer, I will be able to estimate fairly accurately what the trustee will allow you to keep when you file for personal bankruptcy (or liquidate a closely held business through Chapter 7). Call me at 703-684-2000 for a free consultation, including evening or weekend appointments, and "house calls."
Under the current Bankruptcy Code, I am classified as a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.
