WHAT PROPERTY IS EXEMPT OR PROTECTED WHEN FILING BANKRUPTCY IN VIRGINIA?
For many people, one of their biggest concerns when filing bankruptcy is whether or not they will be able to keep their home, car or other material possessions. This fear of losing everything is what deters many people from filing at all, even when it could be a tremendous benefit to them financially. Under Virginia State bankruptcy law, there are certain exemptions that you can claim that can allow you to keep certain property and possessions without having them used as repayment for creditors.
There are of course certain rules and the value of the property exempt must fit within the guidelines laid out by the exemptions list. This limit is related only to the equity that is found in the car, house or other property. Should a loan be attached to a home or car, the equity is covered by exemptions just so long as the owner is up to date on all their payments. If a married couple is filing for bankruptcy, they both may claim exemptions to their full value, unless there are extenuating circumstances.
Here is a list of some, not all, of the items that remain exempt during bankruptcy:
- Up to $5,000 in addition to $500 for every dependent
- Any sales proceeds are exempt up to $5,000
- Rents and profits may also be claimed
- Includes mobile homes
- Benefits for accidents or illnesses
- Burial society benefits
- Cooperative life insurance
- Industrial sick benefits
- Pensions for state, city, town and county employees, as well as judges
- Personal items:
- Clothing up to $1,000 in value
- Any family portraits or heirlooms up to $5,000 in value
- Burial Plot
- Home furniture and décor up to $5,000
- Engagement and wedding rings
- Cars up to $6,000 in value
- Tools and equipment used for an occupation
- Unemployment compensation
- Worker's compensation
There are many other exemptions that can qualify, but it is best to speak with a Virginia Beach bankruptcy lawyer before you make any decisions moving forward. You can also find a complete list of exemptions listed on the Code of Virginia's website.
What about property that does not fall under the list of exemptions? The debtor may end up paying the value of the non-exempt property to the trustee in order to keep the property during bankruptcy. Our knowledgeable legal team can help you work through your specific situation and discover what may be the best option for you and your family to resolve your debt.
the David McCormick Law Group has been providing exemplary financial assistance in over 17,000 cases in the past 17 years. Their Virginia Beach debt relief attorneys are adamant about creating solutions that work, not just creating cookie-cutter cases. Offering services in English and Spanish, do not hesitate to get in touch with our firm today! Free consultation offered when you call (757) 918-8365. Get $100 off by printing out our coupon before you meet with us.