WHAT IS THE VIRGINIA MOTOR VEHICLE EXEMPTION?
When an individual makes the decision to file for Chapter 7 bankruptcy, one of the most common concerns is whether he or she will be able to retain possession of certain assets and property. Chapter 7 is known as liquidation bankruptcy. Unless you have a way to protect your home, vehicle and other valuable assets, they could be taken and sold by the bankruptcy trustee to help get your creditors paid.
Bankruptcy laws allow debtors to claim specific exemptions so they can keep assets of importance. One of these exemptions is the motor vehicle exemption. The Virginia motor vehicle exemption allows a debtor to exempt up to $6,000 worth of the equity in his or her motor vehicle. Individuals who use their vehicle to get to and from work, run household errands or in the process of obtaining a higher education may be eligible to increase their exemption to $10,000. If you and your spouse are filing for bankruptcy jointly, you will be able to exempt up to $17,000 worth of equity in two motor vehicles.
As long as the equity in your vehicle is less than the exemption amount, you will not have to worry about it being taken and sold by the bankruptcy trustee. Should your equity be significantly higher than the exemption amount, it is very likely your vehicle will be used by the bankruptcy trustee to get your unsecured debt repaid. One option to help save your vehicle, even in this type of situation, is to take advantage of Virginia's wildcard exemption. The wildcard exemption allows a vehicle owner to claim an unused homestead exemption and apply it towards to the equity in their motor vehicle.
If you are worried about keeping your vehicle after filing for Chapter 7 bankruptcy, it is important you hire an experienced bankruptcy lawyer who you can trust will have your best interests in mind. Our lawyers have been providing legal representation to clients in all different types of bankruptcy and debt relief actions for decades.
We have a comprehensive understanding of bankruptcy laws, as well as the various exemptions which can be used to help you protect your assets. We are aggressive advocates for debtor rights and are committed to helping you achieve the positive resolution you seek. To find out more about what our firm can do for you, call a Virginia Beach bankruptcy lawyer at the David McCormick Law Group today.