Will I Lose Everything If I File Bankruptcy?
If you’re considering bankruptcy, you may be wondering if you have to give up everything you own. Will you lose all your property to your creditors?
I am Roanoke County attorney Wilson C. Pasley, and I have good news for you: You don’t have to worry about losing everything you own. If you file Chapter 13 bankruptcy, you can keep all your property — including your house and vehicles — by creating a manageable repayment plan. If you file Chapter 7 bankruptcy, you may have to give up some assets, but many others will be protected through state exemptions.
Virginia Law Provides Important Exemptions
Virginia’s bankruptcy laws allow you to claim several exemptions so you don’t have to sacrifice everything you own. Here are some of the exemption amounts for 2016:
- $5,000 (plus $500 for each dependent) under the homestead exemption
- $1,000 for your clothes
- $5,000 for your furniture and other household furnishings
- $5,000 for family portraits and family heirlooms
- $3,000 for firearms
- $10,000 for tools of your trade
- $6,000 for one or more motor vehicles
- Unlimited amounts for personal injury settlements or contributions to retirement accounts
Be aware that the exact amounts of these exemptions change from year to year. This means that it’s best to contact a lawyer for up-to-date advice about exactly how much property you can keep.
Get Straightforward Advice Today
Filing bankruptcy is an important decision, but it’s one you don’t have to make alone. Let me review your financial situation with you and advise you about your options. I will never pressure you to file bankruptcy if you’re not ready to do so or if it’s not in your best interests.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.