Legal Question in Bankruptcy in Virginia

Re: Filing Bankruptcy on Personal Property

Most people who file bannkruptcy hold on to their assets which includes the house and car(s). In VA, the state expemptions protects a portion of your assets. The limitations are in the extent of equity in the home or car. If you would like to discuss the matter further please call at (703) 838 9004 Tommy Andrews, Jr., Esquire

Re: Filing Bankruptcy on Personal Property

In VA, we use the state exemptions in lieu of the federal exemptions. They are set forth in Code of VA, Sections 34-1 through 34-34 under Homestead. You can see them in any public library. Per person, the basic exemption is $5,000, plus other amounts specifically on an item by item basis.

If the value of your home and vehicles exceeds your total allowable exemptions, the Trustee can take and sell those assets and use any non-exempted amounts to pay unsecured creditors. You should seek a consultation with an experienced bankruptcy attorney, ASAP.

Re: Filing Bankruptcy on Personal Property

You have received some misinformation. Many people have filed bankruptcy and were able to keep their homes and vehicles. It depends on the amount of equity you have in your property (both real and personal property). For example, if you have a home that is worth $100.000.00, but you owe $100,000.00, then there is no equity in the real estate. In Virginia, they allow $5,000.00 poer spouse as a Homestead exemption (plus $500.00 per child), but you could have a little more equity in your home than the homestead exemption, because most trustees subtract what the costs of sale would be (up to 10% of value of home). Regarding vehicles, VA law allows for $2000.00 per spouse for a vehicle exemption (remember, this is the equity, or the fair market value minus the payoff, NOT the total value). For household goods and furniture you get a $5,000.00 exemption. For more info, speak with a bankruptcy attorney.