Bankruptcy Exemptions in West Virginia
What property you can keep in bankruptcy in West Virginia: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: West Virginia has its own list of exemptions that apply specifically in bankruptcy. The same statute also says that an individual debtor domiciled in West Virginia may exempt the property listed in the federal exemptions (11 U.S.C. W. Va. Code § 38-10-4(k)
| State or federal exemptions | West Virginia has its own list of exemptions that apply specifically in bankruptcy. The same statute also says that an individual debtor domiciled in West Virginia may exempt the property listed in the federal exemptions (11 U.S.C. 522(d)), "solely for the purpose of applying" 11 U.S.C. 522(b)(2) and only to the extent federal law otherwise allows. The fields below describe the West Virginia bankruptcy exemptions in § 38-10-4. Source: W. Va. Code § 38-10-4(k) |
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| Homestead exemption | In bankruptcy, a debtor may exempt up to $35,000 of interest in real or personal property that the debtor or a dependent uses as a residence (including a cooperative), or in a burial plot. A licensed physician who files bankruptcy partly because of a medical malpractice verdict or judgment, and who carries malpractice insurance of at least $1 million per occurrence, may exempt more than $35,000, up to $250,000 per household. The statute sets no acreage limit. Subsection (l) says the 2023 amendments apply to bankruptcies filed on or after their effective date. The separate $5,000 homestead exemption in W. Va. Code § 38-9-1 applies outside bankruptcy. Source: W. Va. Code § 38-10-4(a) |
| Car exemption | In bankruptcy, a debtor may exempt up to $7,500 of interest in one motor vehicle. Source: W. Va. Code § 38-10-4(b) |
| Wildcard exemption | A debtor may exempt up to $800 of interest in any property, plus any unused amount of the $35,000 residence exemption. Source: W. Va. Code § 38-10-4(e) |
| Retirement accounts | A debtor may exempt the right to receive payments under a stock bonus, pension, profit-sharing, annuity or similar plan on account of illness, disability, death, age or length of service, to the extent reasonably necessary to support the debtor and dependents, and funds in an individual retirement account, including a simplified employee pension (SEP), regardless of the amount. The statute lists exceptions, including plans set up by an insider employer and IRA amounts subject to the federal excise tax on excess contributions. Source: W. Va. Code § 38-10-4(i)(5) |
More West Virginia bankruptcy
FAQ
Can you use the federal bankruptcy exemptions in West Virginia?
West Virginia has its own list of exemptions that apply specifically in bankruptcy. The same statute also says that an individual debtor domiciled in West Virginia may exempt the property listed in the federal exemptions (11 U.S.C. 522(d)), "solely for the purpose of applying" 11 U.S.C. 522(b)(2) and only to the extent federal law otherwise allows.
How much home equity is protected in bankruptcy in West Virginia?
In bankruptcy, a debtor may exempt up to $35,000 of interest in real or personal property that the debtor or a dependent uses as a residence (including a cooperative), or in a burial plot. A licensed physician who files bankruptcy partly because of a medical malpractice verdict or judgment, and who carries malpractice insurance of at least $1 million per occurrence, may exempt more than $35,000, up to $250,000 per household. The statute sets no acreage limit.
Can I keep my car in bankruptcy in West Virginia?
In bankruptcy, a debtor may exempt up to $7,500 of interest in one motor vehicle.
Does West Virginia have a wildcard exemption?
A debtor may exempt up to $800 of interest in any property, plus any unused amount of the $35,000 residence exemption.
Are retirement accounts protected in bankruptcy in West Virginia?
A debtor may exempt the right to receive payments under a stock bonus, pension, profit-sharing, annuity or similar plan on account of illness, disability, death, age or length of service, to the extent reasonably necessary to support the debtor and dependents, and funds in an individual retirement account, including a simplified employee pension (SEP), regardless of the amount. The statute lists exceptions, including plans set up by an insider employer and IRA amounts subject to the federal excise tax on excess contributions.
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.