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 claimed through a recorded homestead deed 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. The state has exercised the opt-out authority in 11 U.S.C. 522(b)(2), so a Virginia debtor cannot choose the federal exemption list in 11 U.S.C. 522(d). Virginia filers use 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 That figure was doubled from $25,000 effective July 1, 2024, which is why many older summaries are out of date.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.

The procedural trap is the homestead deed. Virginia does not grant the homestead automatically. To claim it, a householder must record 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), and bankruptcy rules impose tight deadlines tied to the meeting of creditors. Missing the deadline or describing the property incorrectly can forfeit the exemption, which is why this step is handled carefully in practice.

Vehicle, poor-debtor, and other exemptions

Beyond the homestead, Virginia protects several specific categories:

• Motor vehicle: up to $10,000 of equity in one motor vehicle under Va. Code 34-26.
• 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: Virginia limits garnishment so that a portion of disposable earnings is protected, generally tracking the federal garnishment limits, under Va. Code 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 homestead exemption itself, which can be applied to personal property as well as a home, plus the separate money allowance under 34-4.

The Chapter 7 means test in Virginia

The means test screens who can file Chapter 7. 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 and applies to personal property too, 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.

Because Virginia ties so much to the homestead deed and its filing deadlines, the mechanics of claiming exemptions matter as much as the dollar amounts. Many people consult a licensed Virginia bankruptcy attorney before filing.