Virginia Bankruptcy Laws

Virginia bankruptcy laws allow the debtor declared as bankrupt to use federal supplemental exemptions along with the state specific exemptions. However, you cannot substitute the state specific exemptions completely with the federal exemptions set. Virginia bankruptcy district courts are located in more than a dozen places, under the two group regions – Virginia Eastern District Court and Virginia Western District Court.

Properties Exemptions Under The Virginia Bankruptcy Laws

As per the Virginia bankruptcy laws, following are the properties and their specific details that can be exempted by the debtor declared as bankrupt, by any of the Virginia bankruptcy district courts.

•Mobile homes are allowed to be exempted, under the homestead exemptions.
•The maximum amount exemptible for the homestead properties is five thousand dollars. However, you can also claim to exempt a further five hundred dollars per dependant.
•Sale proceeds of homestead properties can also be exempted up to five thousand dollars.
•Under personal properties exemptions, you are allowed to exempt books, clothing, and furnishings up to the amount of 2500 dollars in total value.
•The Vermont bankruptcy laws have declared all types of wedding ring, irrespective of its price as a completely exemptible personal property. However, jewelry is exempted only up to five hundred dollars.
•The Virginia bankruptcy laws have made it mandatory for you to file for homestead declaration, before filing court petition for bankruptcy.
•Insurance exemptions include industrial sick benefits, group life insurance policy or proceeds, fraternal benefit, society benefits, cooperative life insurance benefits, burial society benefits, and accident or sickness benefits.
•Personal properties exemptions include the following:
◦Clothing up to one thousand dollars.
◦Unlike other states, Virginia bankruptcy laws allow you to exempt up to five thousand dollars for family portraits and pictures.
◦Household furnishings are also exemptible up to five thousand dollars.
◦You are also allowed to exempt cars or other motor vehicles up to two thousand dollars.
•Pension funds are also allowed for exemption, under the Virginia bankruptcy laws, but only the following individuals are eligible for such exemptions:
◦State employees
◦City, town and county employees
•The ERISA-qualified benefits are also considered under the pension fund exemptions, but only up to the amount of 17500 dollars on a per year basis.
•Wild Card exemptions are allowed only for disabled veterans (that too, if they are the householders). The maximum amount exemptible in this regard is two thousand dollars.