Bankruptcy Exemptions in Virginia
What property you can keep in bankruptcy in Virginia: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: Virginia has opted out of the federal bankruptcy exemptions. A person filing bankruptcy may not use the federal exemption list in 11 U.S.C. Va. Code § 34-3.1
| State or federal exemptions | Virginia has opted out of the federal bankruptcy exemptions. A person filing bankruptcy may not use the federal exemption list in 11 U.S.C. 522(d), except as Virginia's exemption title expressly allows, so Virginia filers use Virginia's state exemptions. Source: Va. Code § 34-3.1 |
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| Homestead exemption | A householder may exempt real or personal property used as the principal residence of the householder or the householder's dependents, up to $50,000 in value. This is in addition to the $5,000 (or $10,000 if 65 or older) exemption in any property the householder chooses. The statute does not set an acreage limit. The statute says each dollar limit will be adjusted for inflation (CPI-U, rounded to the nearest $25) on April 1, 2027 and every three years after; the adjustments do not apply to bankruptcy cases filed before April 1, 2027. Under Va. Code § 34-13, the $50,000 residence amount (or any unused part) may be used only for the residence and its proceeds. Source: Va. Code § 34-4 |
| Car exemption | Motor vehicles owned by the householder up to a total of $10,000 in value. A perfected security interest (such as a car loan lien) has priority over the exemption. A vehicle necessary for the householder's occupation or trade can instead fall under the separate $10,000 tools-of-the-trade exemption, but a vehicle used only to commute does not qualify for that one. The statute says each dollar limit will be adjusted for inflation (CPI-U, rounded to the nearest $25) on April 1, 2027 and every three years after; the adjustments do not apply to bankruptcy cases filed before April 1, 2027. Source: Va. Code § 34-26(7), (8) |
| Wildcard exemption | A householder may exempt any real or personal property the householder selects, including money and debts owed to the householder, up to $5,000 in value, or up to $10,000 if the householder is 65 or older. A householder who supports dependents may exempt an additional $500 in value for each dependent. The statute says each dollar limit will be adjusted for inflation (CPI-U, rounded to the nearest $25) on April 1, 2027 and every three years after; the adjustments do not apply to bankruptcy cases filed before April 1, 2027. Source: Va. Code § 34-4 |
| Retirement accounts | An individual's interest in a retirement plan (plans, accounts or arrangements intended to qualify under Internal Revenue Code sections 401, 403(a), 403(b), 408, 408A, 409 or 457, which includes 401(k)s, 403(b)s and IRAs) is exempt from creditor process to the same extent federal bankruptcy law allows for that plan. The exemption does not apply to claims by an alternate payee or to enforcement of child or spousal support. Source: Va. Code § 34-34 |
| Wages | Virginia's wage exemption limits garnishment of disposable earnings for a workweek to the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 40 times the federal or Virginia minimum hourly wage, whichever wage is greater. The statute appears in the chapter titled "Wages Exempt" and is written as a garnishment limit. The page shows a second version of § 34-29 taking effect July 1, 2027. Support orders, tax debts and Chapter 13 bankruptcy court orders are excluded from the subsection A limit. Source: Va. Code § 34-29(A) |
More Virginia bankruptcy
FAQ
Can you use the federal bankruptcy exemptions in Virginia?
Virginia has opted out of the federal bankruptcy exemptions. A person filing bankruptcy may not use the federal exemption list in 11 U.S.C. 522(d), except as Virginia's exemption title expressly allows, so Virginia filers use Virginia's state exemptions.
How much home equity is protected in bankruptcy in Virginia?
A householder may exempt real or personal property used as the principal residence of the householder or the householder's dependents, up to $50,000 in value. This is in addition to the $5,000 (or $10,000 if 65 or older) exemption in any property the householder chooses. The statute does not set an acreage limit.
Can I keep my car in bankruptcy in Virginia?
Motor vehicles owned by the householder up to a total of $10,000 in value. A perfected security interest (such as a car loan lien) has priority over the exemption. A vehicle necessary for the householder's occupation or trade can instead fall under the separate $10,000 tools-of-the-trade exemption, but a vehicle used only to commute does not qualify for that one.
Does Virginia have a wildcard exemption?
A householder may exempt any real or personal property the householder selects, including money and debts owed to the householder, up to $5,000 in value, or up to $10,000 if the householder is 65 or older. A householder who supports dependents may exempt an additional $500 in value for each dependent.
Are retirement accounts protected in bankruptcy in Virginia?
An individual's interest in a retirement plan (plans, accounts or arrangements intended to qualify under Internal Revenue Code sections 401, 403(a), 403(b), 408, 408A, 409 or 457, which includes 401(k)s, 403(b)s and IRAs) is exempt from creditor process to the same extent federal bankruptcy law allows for that plan. The exemption does not apply to claims by an alternate payee or to enforcement of child or spousal support.
Are wages protected in bankruptcy in Virginia?
Virginia's wage exemption limits garnishment of disposable earnings for a workweek to the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 40 times the federal or Virginia minimum hourly wage, whichever wage is greater. The statute appears in the chapter titled "Wages Exempt" and is written as a garnishment limit.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.