Virginia Bankruptcy Exemptions — What Property Can You Keep?

Quick Answer: Virginia bankruptcy exemptions let you keep your home (up to $25,000 equity, or $50,000 if 65+ or disabled), one vehicle (up to $10,000 equity), retirement accounts (fully protected), and a $5,000 wildcard you can apply to any asset. Virginia requires you to use state exemptions — federal exemptions are not available here.

What Are Virginia Bankruptcy Exemptions?

When you file bankruptcy in Virginia, exemptions are the laws that determine what property you get to keep. A bankruptcy trustee can only liquidate assets that are not covered by an exemption. In most consumer Chapter 7 cases in the Eastern District of Virginia, trustees file a “no asset” report — meaning everything the debtor owns is either exempt or not worth selling. Understanding your exemptions before you file is one of the most important steps in planning a successful case.

Important: Unlike many states, Virginia does not allow you to choose between state and federal bankruptcy exemptions. Virginia filers must use the Virginia exemption schedule. The figures below are current as of 2026 and should be verified against current Virginia Code Title 34 before filing.

Virginia Homestead Exemption — Va. Code § 34-4

Virginia’s homestead exemption protects equity in your primary residence. The standard exemption is $25,000 per person, plus $500 for each dependent. If you are 65 or older, or if you qualify as disabled, the exemption increases to $50,000. Married couples who both hold an ownership interest may double the exemption.

The homestead exemption in Virginia applies to real property or personal property used as a primary residence — including houses, condominiums, and mobile homes. It does not protect vacation homes or investment properties.

Note on homestead deeds: Since July 1, 2020, Virginia no longer requires a separate homestead deed to claim the exemption in bankruptcy. The exemption is claimed on your bankruptcy schedules directly.

Motor Vehicle Exemption — Va. Code § 34-26(8)

Virginia protects up to $10,000 of equity in one or more motor vehicles. This exemption applies to the equity you own — the vehicle’s fair market value minus any outstanding loan balance. If your car is worth $12,000 and you owe $8,000, your equity is $4,000 — fully protected. If you own your car outright and it is worth $9,500, that equity is fully protected as well.

If you need your vehicle for work — as a tool of your trade — you may be able to claim it under the tools of trade exemption instead, which also protects up to $10,000 and can be stacked with the wildcard exemption for additional coverage.

Wildcard Exemption — Va. Code § 34-4

Virginia’s wildcard exemption allows you to protect up to $5,000 of any property — cash, bank accounts, tax refunds, jewelry, electronics, or any asset not fully covered by another exemption. If you are 65 or older, the wildcard increases to $10,000. Disabled veterans may claim an additional $10,000 wildcard on top of the standard amount.

The wildcard is especially valuable for protecting cash and bank balances, which have no other exemption category. A married couple each filing can each claim their own wildcard, potentially protecting $10,000 combined in flexible assets.

Strategic use: The wildcard can be stacked on top of other exemptions. If your car has $12,000 in equity, you can apply the $10,000 vehicle exemption and $2,000 of wildcard to protect the full amount.

Retirement Account Exemptions

Retirement accounts are among the best-protected assets in a Virginia bankruptcy. The following are fully exempt regardless of value:

  • 401(k), 403(b), and 457 plans
  • Traditional and Roth IRAs (up to the federal cap, currently $1,512,350 per person)
  • Pension plans — public and private
  • Virginia Retirement System (VRS) benefits
  • Military retirement pay

In the vast majority of EDVA bankruptcy cases, retirement accounts are untouched. Trustees do not have access to exempt retirement funds.

Personal Property Exemptions — Va. Code § 34-26

Virginia protects a wide range of personal property under its “poor debtor’s exemptions,” including:

  • Household furnishings — up to $5,000 (beds, appliances, furniture, basic electronics)
  • Clothing — up to $1,000
  • Family portraits and heirlooms — up to $5,000 total
  • Firearms — up to $3,000
  • Pets — fully exempt
  • Tools of trade — up to $10,000 (equipment, books, instruments, or vehicles necessary for your occupation)
  • Child Tax Credit and Earned Income Credit refunds — fully exempt

Wage Exemptions — Va. Code § 34-29

Virginia protects the greater of 75% of your weekly disposable earnings or 40 times the federal minimum hourly wage from wage garnishment. This protection applies both inside and outside of bankruptcy.

Tenancy by the Entirety — A Powerful Protection for Married Couples

Property held as tenancy by the entirety — real estate owned jointly by a married couple — is fully protected against debts owed by only one spouse. If only one spouse files bankruptcy and the debt is not a joint debt, the home held as tenancy by the entirety may be entirely protected, even if its equity exceeds the homestead exemption limit. This is one of the most important exemption strategies available to married homeowners in Virginia.

What Happens to Non-Exempt Property?

In a Chapter 7 case, the trustee can liquidate non-exempt assets to pay creditors. In practice, most consumer filers in the EDVA have no non-exempt assets — the trustee reviews the schedules and files a “no asset” report. In a Chapter 13 case, you keep all of your property but must pay unsecured creditors at least the value of your non-exempt assets over the life of your repayment plan.

Exemption Planning — Talk to an Attorney Before You File

Exemptions must be claimed correctly on your bankruptcy schedules. Mistakes — such as failing to claim an exemption, listing the wrong value, or applying the wrong exemption to the wrong asset — can result in losing property you were entitled to keep. At Merna Law, exemption analysis is part of every case evaluation. Schedule a free consultation to review your specific assets and how Virginia’s exemptions apply to your situation.