Chapter 7 Bankruptcy in Virginia: Exempt and Non-Exempt Assets

When you decide to file for Chapter 7 bankruptcy in Virginia, you're going to hear a lot about exempt and non-exempt assets. What categories will your property fall under? What will you get to keep and what will be sold? There are always exceptions, but in most cases, this is how it is determined whether an asset is exempt or non-exempt:

Assets That Have Specific Exemptions in Chapter 7 Bankruptcy

  • Your house, if you own it jointly with your spouse and you have no joint unsecured debts
  • Your car (only one car, up to a certain value)
  • Some clothing, up to a certain value
  • Jewelry, up to a certain value
  • Wedding and Engagment Rings
  • Family Heirlooms and Portrats
  • Household furnishings and appliances, up to a certain value

Assets That Do Not Have Special Exemptions in Chapter 7 Bankruptcy

  • Any cars that are in addition to your primary vehicle
  • Any homes aside from your primary residence
  • Bank accounts, stocks, and bonds
  • tax refunds to include amounts due to earned income credit
  • garnished wages
  • Personal collections

Even though this is how property will generally be classified in Chapter 7, it's certainly not the rule. Chapter 7 is filled with exceptions and you need an experienced Virginia Beach bankruptcy lawyer who will be able to make sure all of your property is protected. For additional information about protecting your assets, check out my article on "How to Lose Money in Bankruptcy"

While It may feel like so many things you own can be taken from you, in the vast majority of my cases, my clients do not lose anything. Start planning right now to hold onto the possessions you need when discharging your debts. Contact us or call 757-320-2010 for a free Chapter 7 bankruptcy consultation. Don't lose your assets by trying to do this on your own.

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