Virginia Bankruptcy Laws

Standard federal filing fees. Virginia has two federal bankruptcy court divisions: Eastern District (Alexandria, Norfolk, Richmond, Newport News) and Western District (Roanoke, Harrisonburg, Lynchburg, Danville).

Pre-filing credit counseling and pre-discharge debtor education are required (federal requirements apply in Virginia).

Virginia's homestead exemption is $25,000 per person (doubled from $5,000/$10,000 effective July 1, 2024). Married couples filing jointly can protect up to $50,000. Veterans who are 40%+ disabled receive an additional $10,000 exemption. Compared to many states, this remains modest.

Unlike many states, Virginia allows debtors to choose between state and federal bankruptcy exemptions. The federal homestead exemption ($27,900 as of April 2025) may exceed the Virginia state exemption, making it the better choice for homeowners in some cases.

Key exemptions include: motor vehicle up to $6,000, household furnishings up to $5,000, clothing and personal items, wedding and engagement rings, family Bible, pets, and family portraits. Tools of the trade up to $10,000.

Tax-qualified retirement plans (401(k), 403(b), pension) and IRAs are fully exempt from creditor claims, with no dollar limit. This is one of the strongest protections in Virginia bankruptcy.

The greater of 75% of disposable earnings or 40 times the federal minimum wage per week is exempt from wage garnishment. For consumer debts, the protections are the same as federal law.