Virginia Bankruptcy Laws
Virginia law allows for the uncommon, but not unique allowed combination of state and federal exemptions when filing Chapter 7 bankruptcy. Generally, the following will be exempt:
Homestead |
Up to $5,000 or sale up to $5,000, plus $500 per dependent |
Wages |
Up to 75% earned but unpaid |
Personal Property |
Kitchen appliances, family heirlooms to $500 |
Pensions |
No limit |
Public Benefits |
Crime victims, worker’s compensation, unemployment and ERISA-qualified up to $17,5000 |
Tools of the Trade |
Up to $10,000, farming tools up to $3,000, other up to $1,000 |
Insurance |
Full group/cooperative insurance |
Miscellaneous |
Burial plots, health aids, Bible, furnishings to $5,000, pets, wedding rings, child support and alimony, and $2,000 for disabled veteran householders. |
After completing the preliminary stages of bankruptcy with a legal professional, and choosing the most effective method to use, a bankruptcy petition must be filed to the bankruptcy court. To file the petition, an inventory of all a debtor’s possessions must be taken. This procedure should be taken very seriously for those filing Chapter 7 bankruptcy in order to avoid possibly bankruptcy fraud. If after 20 to 40 days the petition is granted, all creditors will be notified, and a meeting will be arranged. This is the “341 meeting,” which is extremely important for those filing Chapter 13 bankruptcy, because it is when the repayment plan is designed.
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