Legal Question in Bankruptcy in Virginia

Re: homestead exemptions

A homestead exemption is like a "wildcard" exemption. A debtor uses this exemption in addition to what he or she already has available under the other "automatic" exemptions (e.g., $2,000.00 for a vehicle). The homestead exemption protects your assets so that the bankruptcy trustee and creditors are prohibited from taking those assets (whatever assets you choose to "homestead"). Under VA law, you can have a homestead exemption for personal property or for real property (or a combination of both). An individual can use a homestead exemption to protect $5,000.00 worth of assets (cash, real estate, boats, cars, or whatever). In addition, the debtor gets $500.00 per child to add to the $5,000.00 homestead exemption. A "homestead deed" is filed in the county where your assets are. It can be done whether or not a bankruptcy petition is filed. But in a bankruptcy case, the homestead deed must be filed WITHIN 5 days of the Meeting of Creditors (or anytime before the Metting of Creditors), NOT afterward. See any attorney for more information pertaining to your case.