Bankruptcy in Virginia (2026): Exemptions & Means Test

Virginia is a state where bankruptcy property protections come from its own statutes rather than the federal list. Virginia has opted out of the federal bankruptcy exemptions, so filers must use Virginia's exemptions, the most important being the homestead exemption under Va. Code 34-4. The legislature recently doubled that homestead, so several older guides understate it. The figures below are current as of mid-2026, and you should confirm the latest amounts before relying on them.

This page is general legal information, not legal advice. It is part of our Bankruptcy by State series.

Does Virginia use state or federal bankruptcy exemptions?

Virginia uses its own exemptions. Va. Code 34-3.1 bars an individual from exempting in a bankruptcy proceeding the property specified in subsection (d) of Section 522 of the federal Bankruptcy Reform Act, which is how Virginia exercises the state opt-out authority in 11 U.S.C. 522(b)(2). A Virginia debtor therefore cannot choose the federal exemption list in 11 U.S.C. 522(d), and instead uses the state exemptions found in Title 34 of the Code of Virginia and in scattered provisions elsewhere in the code.

Federal nonbankruptcy protections still apply on top of the state list. Social Security, most ERISA-qualified retirement plans, and certain federal benefits remain protected regardless of the opt-out. The threshold point is that you build your exemption claim from Virginia law, not from 522(d).

Virginia homestead exemption and the homestead deed

Virginia's headline protection is the homestead exemption in Va. Code 34-4. A householder may hold exempt real or personal property used as a principal residence up to $50,000 in value. That figure was doubled from $25,000 effective July 1, 2024, which is why many older summaries are out of date. The homestead adds $500 for each dependent of the householder.

Virginia also gives a separate money-and-personal-property allowance under the same section: up to $5,000 in money and debts, increasing to $10,000 if the householder is 65 years of age or older. Beginning April 1, 2027, and every three years after, these monetary limits adjust for inflation under the Consumer Price Index and round to the nearest $25, so the amounts will move over time.

Virginia does not grant the homestead automatically; it has to be claimed. Outside bankruptcy, a householder claims it by recording a homestead deed describing the property in the circuit court of the county or city where the debtor resides or where the real estate sits, under Va. Code 34-6 and 34-14.

In a bankruptcy case, that recording step is not required. Both sections provide that where property is claimed exempt in a case filed under Title 11 of the United States Code, the official Schedule of Property Claimed as Exempt filed in the United States Bankruptcy Court is sufficient to set the property apart as exempt. Va. Code 34-17 imposes no deadline tied to the meeting of creditors; it allows the exemption to be set apart at any time before the property is subjected to sale under creditor process or by a trustee in bankruptcy. Older guides describing a homestead deed deadline that runs from the 341 meeting are out of date.

Vehicle, poor-debtor, and other exemptions

Beyond the homestead, Virginia protects several specific categories:

• Motor vehicles: up to a total of $10,000 in value in motor vehicles owned by the householder under Va. Code 34-26(8). The cap is an aggregate across vehicles, not a separate $10,000 for each one, and it excludes any vehicle already held exempt as a tool of trade under subdivision 7.
• Poor debtor's exemptions under Va. Code 34-26: household furnishings up to $5,000, wearing apparel up to $1,000, family Bibles, wedding and engagement rings, family portraits and heirlooms up to $5,000, and certain firearms and pets.
• Tools of trade: implements, tools, and books needed for a trade or profession, up to $10,000, under Va. Code 34-26.
• Wages: under Va. Code 34-29(A), garnishment may not reach more than the lesser of 25 percent of an individual's weekly disposable earnings or the amount by which those earnings exceed 40 times the federal minimum hourly wage or the Virginia minimum hourly wage, whichever of those two wages is greater. That 40-times floor protects more income than the federal 30-times standard.
• Disabled veterans: a veteran residing in Virginia with a service-connected disability rated 40 percent or more by the U.S. Department of Veterans Affairs may hold an additional $10,000 of real or personal property, including money and debts due, exempt under Va. Code 34-4.1. It stacks on top of the exemptions in Va. Code 34-4, 34-26, 34-27 and 34-29.
• Health aids, prescribed medical devices, and most public benefits are also protected.

Virginia does not offer a broad cash wildcard the way some states do; the flexible cushion comes from the separate real-or-personal-property allowance under 34-4, up to $5,000 (or $10,000 if the householder is 65 or older), since the $50,000 homestead tier itself is limited to property used as the householder's principal residence.

The Chapter 7 means test in Virginia

The means test screens Chapter 7 filings for a presumption of abuse. It first compares your household's current monthly income, annualized, against the median family income for a Virginia household of the same size. If your income is at or below the Virginia median, you generally clear this step. If it is above, you complete the longer calculation that deducts allowed living expenses to see whether you have disposable income that should fund a Chapter 13 plan.

The U.S. Trustee Program publishes the median figures. For cases filed on or after April 1, 2026, the Virginia median family income is:

Add $11,100 for each additional person beyond four. These figures apply only to cases filed on or after April 1, 2026, and the U.S. Trustee Program revises them about twice a year, so confirm the figures for your filing date.

Chapter 7 vs. Chapter 13 in Virginia

Chapter 7 is a liquidation in which a trustee may sell non-exempt property to pay creditors. Because Virginia's homestead now protects up to $50,000 of a principal residence, plus a separate property exemption of up to $5,000 (or $10,000 for a householder 65 or older) that can reach other real or personal property, many filers keep everything they own, and most remaining unsecured debt like credit cards and medical bills is discharged within a few months.

Chapter 13 is a reorganization for people with regular income. You keep your property and repay part or all of your debt over three to five years. It is often used by homeowners who are behind on a mortgage, because the plan can cure the arrears over time and stop a foreclosure, and by filers whose income is above the median.

In both chapters, filing triggers the automatic stay under 11 U.S.C. 362, which immediately stops most collection activity, including foreclosure, wage garnishment, repossession, and collection calls.

Where you file bankruptcy in Virginia

Virginia has two federal bankruptcy districts. The U.S. Bankruptcy Court for the Eastern District of Virginia covers the more populous eastern half, with locations in Alexandria, Richmond, Norfolk, and Newport News. The U.S. Bankruptcy Court for the Western District of Virginia covers the western half, with locations in Roanoke, Lynchburg, and Harrisonburg. You file in the district where you have lived for the greater part of the last 180 days. Federal law requires approved credit counseling before you file and a debtor-education course before discharge.

What bankruptcy can and cannot do

Bankruptcy discharges most unsecured debts, but several categories generally survive: most student loans (absent a separate showing of undue hardship), recent income taxes, child support and alimony, and debts from fraud or willful injury. Secured debts like a mortgage or car loan continue if you keep the collateral and keep paying.

Virginia's exemptions come from its own statutes, and claiming them correctly matters as much as the amounts, so get a free bankruptcy evaluation from a Virginia lawyer on claiming them correctly on your Schedule of Property Claimed as Exempt (attorney advertising).

Frequently Asked Questions

Does Virginia use state or federal bankruptcy exemptions?

Virginia uses state exemptions. It has opted out of the federal exemptions under 11 U.S.C. 522(b)(2), so Virginia filers cannot use the federal list in 522(d) and instead claim exemptions under Title 34 of the Code of Virginia. Federal nonbankruptcy protections like Social Security and ERISA-qualified retirement plans still apply.

What is the homestead exemption in Virginia?

Virginia's homestead exemption under Va. Code 34-4 protects up to $50,000 of equity in a principal residence, plus $500 for each dependent. The $50,000 figure was doubled from $25,000 effective July 1, 2024. There is also a separate money allowance of up to $5,000, or $10,000 if the householder is 65 or older, and the limits begin adjusting for inflation on April 1, 2027.

What is a homestead deed in Virginia?

A homestead deed is the writing a householder records in the circuit court under Va. Code 34-6 and 34-14 to set property apart as exempt from creditor process. In a bankruptcy case no recorded deed is needed: both sections provide that the official Schedule of Property Claimed as Exempt filed in the United States Bankruptcy Court is sufficient to set the property apart, and Va. Code 34-17 sets no deadline tied to the meeting of creditors. The homestead deed still matters outside bankruptcy, for example against a garnishment or a levy.

What is the Virginia median income for the means test?

For cases filed on or after April 1, 2026, the Virginia median family income is $78,491 for 1 person, $101,171 for 2, $123,159 for 3, and $144,826 for 4, adding $11,100 for each additional person. The U.S. Trustee Program updates these figures periodically.

How much car equity can I protect in a Virginia bankruptcy?

Va. Code 34-26(8) exempts motor vehicles owned by the householder up to a total of $10,000 in value. That cap is an aggregate across all of them, not a separate $10,000 per vehicle. The $50,000 homestead tier under Va. Code 34-4 is limited to property used as the householder's principal residence and does not reach a vehicle, but excess vehicle equity may sometimes be covered by the separate $5,000 (or $10,000 if the householder is 65 or older) property exemption under 34-4.

Will I lose my house if I file bankruptcy in Virginia?

Virginia's homestead now protects up to $50,000 of equity, plus $500 per dependent, which covers many homeowners with modest equity who stay current on the mortgage. A homeowner with substantial equity above the exemption should consider whether Chapter 13 is a better fit.

Where do I file for bankruptcy in Virginia?

Virginia has two districts. The Eastern District of Virginia covers areas including Alexandria, Richmond, Norfolk, and Newport News, while the Western District covers areas including Roanoke, Lynchburg, and Harrisonburg. You file in the district where you have lived for most of the past 180 days, after completing approved credit counseling.

What debts cannot be discharged in a Virginia bankruptcy?

Most student loans (absent a showing of undue hardship), recent income taxes, child support, alimony, and debts arising from fraud or willful injury generally are not discharged. Most credit-card and medical debt usually is.