Here's what would happen in each chapter. You'll pay your creditors the value of any property not covered by an exemption in your Chapter 13 repayment plan.įor example, say you own a car outright worth $3,000, and your state has a vehicle exemption of up to $5,000. In Chapter 13 bankruptcy, you can keep all of your property however, that luxury comes at a price-literally. The bankruptcy trustee responsible for managing your case will sell the property for the benefit of your creditors. In Chapter 7 bankruptcy, you lose property not covered by an exemption. What Happens to Property You Can't Exempt in a Virginia Bankruptcy?
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Accident, sickness, or industrial illness benefits (Va.Group life insurance policy or proceeds (Va.Life insurance proceeds, dividends, interest, loan, cash, or surrender value ( Code Ann.40 times the federal minimum hourly wage or minimum of 75% of disposable weekly earnings judge can approve more (Va.Virginia Public Benefits and Wage Exemptions As with all exemptions, be sure to check for current amounts and qualification requirements. Here are more Virginia exemptions, but it's not an exhaustive list. more retirement protections in "Federal Nonbankruptcy Exemptions" below.retirement benefits that are exempt under the Internal Revenue Code.surviving spouse or minor children can exempt up to $20,000 of deceased spouse's personal property.prepaid tuition contracts and college savings trust accounts.health savings accounts and medical savings accounts.personal injury recoveries and causes of action.family portraits and heirlooms up to $5,000.$5,000 of any real estate or personal property $10,000 if 65 years of age or older.arms, uniforms, and equipment of a military member.tractor to $3,000 horses cart two plows one cradle one pitchfork two iron wedges fertilizer to $1,000.tools, books, equipment, and machines up to $10,000 including motor vehicles, vessels, and aircraft necessary in occupation or trade.protections available for property held as tenants by the entireties.property can be used by debtor or debtor's dependents.$25,000 real or personal property used as a principal residence.The federal bankruptcy exemptions aren't available in Virginia. However, you'll use Virginia state laws known as " bankruptcy exemptions" and federal nonbankruptcy exemptions to protect your property. Or, if you'd like an exemption overview, read Bankruptcy Exemptions – What Can I Keep When I File for Bankruptcy? Using Exemptions in a Virginia Bankruptcyīankruptcy is a federal process, so it works the same way in every state. If you'd like to check for other common issues in your bankruptcy case, try using the ten-question bankruptcy quiz-it will flag areas you'll want to look into further. whether you've lived in Virginia long enough to use Virginia's bankruptcy exemptions.what will happen to property you can't protect with an exemption, and.
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To prevent a costly property loss, you'll want to learn about:
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But "exemption laws" protect essential property only, not unnecessary luxury goods. You'll straighten out your finances and keep the things you need to work and live. Bankruptcy promises a fresh start-and it works.