What Can You Keep?

Most people are able to hold on to basic necessities like home, car, and retirement accounts during Chapter 7. But nothing is guaranteed. Virginia has a specific list of property you can exempt from creditors in your bankruptcy. You will need to review these exemptions as they apply to your own situation in detail with your bankruptcy attorney.

​http://www.virginia-bankruptcy.com/exemptions.html
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What Property Can I Protect with Bankruptcy Exemptions
Virginia state law dictates which assets you can exempt in bankruptcy. These exemptions are not  automatic. You have to list the property you’re entitled to exempt on a schedule.  If you don’t list it, the trustee can sell it.

Consult with your attorney to see which of these exemptions, or any others you may be able to take:

• homestead exemption (some or all of the equity in your residence)
• vehicle (a small amount of equity in your car)
• household goods and furnishings (furniture, garden equipment/tools, kitchen equipment, towels, linens, garden tools)
• clothes
• tools of your trade (some amount of tools you need for your job)
• most retirement accounts.

You may be allowed other items, such as the money in your bank account, depending on your situation.

What Happens to Nonexempt Property?
That depends on the kind of bankruptcy you file.

• Chapter 7 bankruptcy property you keep. In Chapter 7, the trustee sells your nonexempt property for whatever he can get (or you buy it back if you can afford to). He then distribute the proceeds to your creditors.
• Chapter 13 bankruptcy property you keep. In Chapter 13, you keep everything—exempt and nonexempt. But there's a catch: You have to pay your unsecured creditors the amount that's equal to your nonexempt property over a 3 to 5 year period, or with your disposable income, whichever is greater. Put simply, you should expect that at least each dollar of nonexempt property you hold onto will increase the total amount of your repayment plan by one dollar.

But every Chapter 13 is unique. So you can talk to one of our bankruptcy lawyers, so you'll find out exactly what should be the best course of action for you, and what would happen to your property under every scenario, including taking into account all costs of filing for bankruptcy. One of our attorneys will be happy to help you understand this critical piece of your bankruptcy:  (804) 294-3003.