Virginia Veterans Bankruptcy Attorney — Chapter 7 & 13 | Merna Law
Quick Answer
Yes — veterans can file Chapter 7 or Chapter 13 bankruptcy in Virginia, and federal and state law give them extra protection. Under the HAVEN Act, VA disability compensation is excluded from the bankruptcy means test, which makes it easier for many disabled veterans to qualify for Chapter 7. Separately, federal law shields VA benefits from most creditors, and Virginia adds a special $10,000 homestead exemption for veterans with a 40%+ service-connected disability — on top of the standard homestead exemption. Merna Law has helped thousands of Virginians, including veterans and military families, get a fresh start, and we handle the entire case by phone and Zoom.
You served the country. When debt, garnishment, repossession, or foreclosure threatens the stability you earned, bankruptcy is a federal right built to give you a clean slate — and as a veteran, you have protections most filers don’t. The challenge is using them correctly. Below is how the HAVEN Act and Virginia law protect your VA disability income and your property, and how Merna Law puts those protections to work for veterans across the Commonwealth — without you ever leaving home.
The HAVEN Act: Your VA Disability Doesn’t Count Against the Means Test
The bankruptcy “means test” compares your income to the Virginia median to decide whether you qualify for Chapter 7. For years, VA disability payments were counted as income — pushing some disabled veterans into a longer Chapter 13 repayment plan they didn’t need.
The Honoring American Veterans in Extreme Need (HAVEN) Act of 2019 changed that. It amended the Bankruptcy Code’s definition of “current monthly income” (11 U.S.C. § 101(10A)) to exclude VA and Department of Defense disability and survivor benefits from the means test calculation. The exclusion covers VA service-connected disability compensation, dependency and indemnity compensation, combat-related special compensation, and similar payments.
For a veteran, this can mean two things: a better chance of qualifying for a quick Chapter 7 discharge, and — if Chapter 13 is the right path — VA disability income that is not counted toward your “disposable income,” so it isn’t swept into a repayment plan. The Act applies to any Chapter 7 or Chapter 13 case filed on or after August 23, 2019.
The HAVEN Act changes how your income is counted; it does not by itself make you eligible. The right chapter still depends on your full financial picture, which is exactly what your free consultation sorts out. See our Virginia means test guide.
VA Benefits Are Shielded From Most Creditors
Beyond the means test, federal law (38 U.S.C. § 5301) protects VA benefits from attachment, levy, and seizure by most creditors — before and during a bankruptcy. That protection is one reason a veteran’s disability income generally stays intact through the process. Combined with the bankruptcy automatic stay, which immediately halts garnishments, collection calls, lawsuits, and repossession the moment your case is filed, veterans often see relief the same day they file.
Extra Property Protection for Virginia Veterans
Virginia lets you protect (“exempt”) property from creditors when you file. Veterans get a meaningful boost on top of the standard exemptions every filer receives. Here is what Virginia law currently provides:
Disabled Veteran Exemption
+$10,000
Va. Code § 34-4.1 gives any veteran residing in Virginia with a service-connected disability of 40% or more (as rated by the VA) an additional $10,000 exemption — over and above the standard homestead exemption below.
Homestead Exemption
$5,000 + $50,000
Va. Code § 34-4 protects up to $5,000 in property of your choosing (or $10,000 if you are 65 or older), plus up to $50,000 in your principal residence, plus $500 per dependent.
Everyday Essentials
Household goods
Va. Code § 34-26 protects clothing, household furnishings, a vehicle (up to set limits), tools of your trade, and more — so the basics of daily life are not on the table.
Amounts verified June 2026 against the Code of Virginia. Virginia requires exemptions to be claimed correctly and on time (often by recording a homestead deed), and the figures adjust for inflation beginning April 1, 2027. Claiming them properly is part of what your attorney does — see our full Virginia bankruptcy exemptions guide.
You Earned a Fresh Start. Let’s Protect It.
Free, confidential consultation for veterans and their families — by phone or Zoom, anywhere in Virginia.
Chapter 7 or Chapter 13 — Which Fits a Veteran?
Chapter 7 — Eliminate Debt
Wipes out credit cards, medical bills, personal loans, and most unsecured debt, usually in about 90 days. With VA disability income excluded under the HAVEN Act, more veterans qualify than they expect.
Chapter 13 — Reorganize & Catch Up
Stops foreclosure and repossession and lets you catch up over 3–5 years while keeping your home and vehicle. Your protected VA disability income stays out of the disposable-income calculation.
Thousands of Fresh Starts — Filed From Home
Merna Law has guided thousands of Virginians — including veterans, retirees, and active military families — through bankruptcy to a genuine fresh start. Founder John G. Merna is a former CIA officer who understands service, security clearances, and the unique financial pressures that follow a military career. We file your entire case remotely: a free phone or Zoom consultation, secure electronic document signing, and a 341 meeting of creditors held by phone or video in the Eastern District of Virginia. You never have to take leave, drive across the state, or sit in a waiting room.
If you are still serving or recently transitioned, you may also want our military bankruptcy page, which covers security clearances, SCRA protections, allotments, and filing while deployed. Many veterans use both sets of protections together.
Talk to a Virginia Veterans Bankruptcy Attorney Today
Stop the garnishments and collection calls. Protect your VA benefits and your home. Free and confidential.
Veterans Bankruptcy in Virginia — Frequently Asked Questions
Does my VA disability count as income on the bankruptcy means test?
No. Under the HAVEN Act (which amended 11 U.S.C. § 101(10A) effective August 23, 2019), VA service-connected disability compensation and most other VA and DoD disability and survivor benefits are excluded from “current monthly income.” That often makes it easier for disabled veterans to qualify for Chapter 7.
Can creditors take my VA disability payments?
Generally no. Federal law (38 U.S.C. § 5301) protects VA benefits from most creditors, and the bankruptcy automatic stay stops garnishments and collection the moment you file. Specific situations vary, so review yours with an attorney.
What extra property can a disabled veteran protect in Virginia?
A veteran residing in Virginia with a 40% or greater service-connected disability rating gets an additional $10,000 exemption under Va. Code § 34-4.1 — on top of the standard homestead exemption (up to $5,000 of property plus up to $50,000 in a principal residence) and the household-goods exemptions under § 34-26.
Will filing bankruptcy affect my VA benefits or disability rating?
No. Filing bankruptcy does not change your VA disability rating or your eligibility for VA benefits. It addresses your debts — not your service-connected compensation.
Can I file without coming into an office?
Yes. Merna Law handles veterans’ cases entirely by phone and Zoom across Virginia — free consultation, electronic signing, and a telephone or video 341 meeting. See how remote filing works.