Virginia Bankruptcy Guide

Complete guide to filing bankruptcy in Virginia, including current median income requirements, Virginia's homestead exemption up to $25,000, choice between state and federal exemptions, bankruptcy court information for all four Virginia districts, and how to find qualified bankruptcy attorneys throughout Virginia.

Virginia Median Income for Bankruptcy (2026)

To qualify for Chapter 7 bankruptcy in Virginia, your household income must be below these median income levels. If your income exceeds these amounts, you may still qualify through the means test or need to file Chapter 13 instead.

Household Size	Annual Median Income	Monthly Median Income
1 person	$65,952	$5,496
2 people	$81,206	$6,767
3 people	$95,604	$7,967
4 people	$115,439	$9,620
5 people	$124,439	$10,370
6 people	$133,439	$11,120

Note: For households larger than 4, add $9,000 per additional person. These figures are updated annually by the U.S. Trustee Program.

Calculate Your Virginia Eligibility

Virginia Bankruptcy Exemptions

Virginia allows bankruptcy filers to choose between Virginia state exemptions and the federal bankruptcy exemptions. This choice can significantly impact which assets you can protect, so it's important to carefully compare both sets of exemptions with a Virginia bankruptcy attorney.

Virginia Homestead Exemption

Up to $25,000 ($100,000 if elderly or disabled).

Virginia's state homestead exemption protects up to $25,000 of equity in your primary residence. However, if you are age 65 or older, or if you are disabled (as defined by the Social Security Administration), the homestead exemption increases dramatically to $100,000. This is one of the most generous exemptions for elderly or disabled homeowners in the country.

The property must be your principal residence at the time of filing bankruptcy. The exemption applies to real property including houses, condominiums, mobile homes, and co-ops.

Federal Exemption Alternative: Virginia filers can instead choose the federal homestead exemption of $27,900 ($55,800 for married couples), which is slightly higher than Virginia's standard $25,000 but much lower than the $100,000 for elderly or disabled filers.

Virginia Vehicle Exemption

Up to $6,000.

Virginia allows you to protect up to $6,000 of equity in one motor vehicle under state exemptions. This is one of the more generous vehicle exemptions in the country. If you owe more than your vehicle is worth or have equity within this limit, you can typically keep it by continuing to make loan payments.

Federal Exemption Alternative: The federal vehicle exemption is $4,450, which is lower than Virginia's $6,000 state exemption. For vehicle protection, Virginia state exemptions are usually better.

Virginia State Exemptions

Virginia bankruptcy exemptions include:

• Homestead: $25,000 ($100,000 if age 65+ or disabled)
• Vehicle: $6,000
• Household Goods and Furnishings: $5,000
• Clothing: $1,000
• Wedding and Engagement Rings: $1,000
• Family Heirlooms: $5,000
• Books: No specific limit if reasonably necessary
• Tools of Trade: $10,000 (one of the highest in the nation)
• Wildcard: $5,000 of any property plus up to $10,000 of unused homestead
• Wages: Certain percentages of earned wages

Federal Exemptions (Alternative Choice)

Virginia filers may choose federal exemptions instead:

• Homestead: $27,900 ($55,800 for married couples)
• Vehicle: $4,450
• Household Goods: $700 per item, up to $14,875 total
• Jewelry: $1,875
• Tools of Trade: $2,800
• Wildcard: $1,475 general + up to $13,950 of unused homestead (total $15,425)

Which Exemptions Should You Choose?

Choose Virginia state exemptions if:

• You are age 65 or older or disabled (Virginia's $100,000 homestead is exceptional)
• You have more than $4,450 equity in your vehicle (Virginia allows $6,000)
• You have significant tools of trade (Virginia allows $10,000 vs federal $2,800)
• You have valuable family heirlooms (Virginia allows $5,000)

Choose federal exemptions if:

• You're under 65, not disabled, and have little or no home equity (federal wildcard is larger)
• You have low home equity and want the larger federal wildcard ($15,425 total)
• You have significant household goods (federal allows $14,875 vs Virginia $5,000)

Other Protected Assets

• Retirement Accounts: Fully protected including 401(k), IRA, pension plans, and government retirement benefits under federal law
• Public Benefits: Social Security, unemployment, workers' compensation, veteran's benefits, disability benefits, public assistance, crime victim's compensation
• Life Insurance: Cash surrender value up to $50,000
• Health Aids: Medically prescribed health aids
• Education Savings: Virginia 529 education savings plan
• Personal Injury Awards: Compensation for personal injury (except pain and suffering)

Filing Bankruptcy in Virginia

Chapter 7 Bankruptcy in Virginia

Chapter 7 bankruptcy is commonly filed throughout Virginia. The process typically takes 3-4 months from filing to discharge and eliminates most unsecured debts including credit cards, medical bills, personal loans, and past-due utility bills.

To qualify for Chapter 7 in Virginia, you must pass the means test by having income below the Virginia median or by showing that after allowable expense deductions, you lack sufficient disposable income to fund a Chapter 13 repayment plan. You must also complete credit counseling from an approved agency within 180 days before filing.

Virginia's choice between state and federal exemptions, combined with the enhanced homestead for elderly or disabled filers, provides good protection for most assets. Work with a Virginia bankruptcy attorney to determine which exemption set protects your specific assets better.

Learn more about Chapter 7 bankruptcy →

Chapter 13 Bankruptcy in Virginia

Chapter 13 bankruptcy allows Virginia residents to keep property while repaying some or all debts through a court-approved 3-5 year payment plan. This option is particularly beneficial if you're behind on mortgage or car payments and want to catch up while stopping foreclosure or repossession.

Chapter 13 is especially useful in Virginia if your income is too high to qualify for Chapter 7, if you have non-exempt assets you want to protect (particularly if you have more home equity than your chosen exemption allows), or if you have priority debts like recent taxes or past-due child support. Your monthly payment is based on your disposable income after allowable living expenses.

Learn more about Chapter 13 bankruptcy →

Bankruptcy Courts in Virginia

Virginia is divided into two federal bankruptcy court districts, with the Eastern District having three divisions:

Eastern District of Virginia

Main Courthouses: Richmond, Alexandria, Norfolk, Newport News

Covers eastern Virginia including the Richmond metro area, Northern Virginia (Arlington, Alexandria, Fairfax), Hampton Roads (Norfolk, Virginia Beach, Newport News, Hampton), and the eastern portion of the state. This is the larger and busier of Virginia's two bankruptcy districts.

Court divisions:

• Richmond Division: Serves Richmond and surrounding counties
• Alexandria Division: Serves Northern Virginia including Arlington, Fairfax, Loudoun, and Prince William counties
• Norfolk Division: Serves Hampton Roads including Norfolk, Virginia Beach, Newport News, Chesapeake, and the Eastern Shore

Western District of Virginia

Main Courthouses: Roanoke, Harrisonburg, Lynchburg

Covers western Virginia including Roanoke, Charlottesville, Harrisonburg, Lynchburg, Blacksburg, and the Shenandoah Valley. This district serves the mountainous and southwestern portions of Virginia.

Court divisions: Roanoke Division (southwestern Virginia), Harrisonburg Division (Shenandoah Valley), and Lynchburg Division (south-central Virginia).

You must file in the district where you have lived for the greater part of the 180 days before filing. Visit the U.S. Courts website for specific court locations, filing procedures, and local rules for each Virginia district.

Virginia Residency Requirements

To use Virginia bankruptcy exemptions (either state or federal), you must have been domiciled (legally residing) in Virginia for at least 730 days (2 years) before filing. If you've lived in Virginia for less than 2 years, you must use the exemptions from the state where you lived for the 180 days immediately before the 2-year period.

Virginia allows you to choose between state and federal exemptions once you meet the residency requirement. This choice is made at the time of filing and cannot be changed later, so careful analysis with an attorney is important.

Find a Virginia Bankruptcy Attorney

Most Virginia bankruptcy attorneys offer free initial consultations. Given the complexity of bankruptcy law and Virginia's choice between state and federal exemptions (plus the special considerations for elderly or disabled homeowners), consulting with an experienced Virginia bankruptcy attorney is highly recommended.

What a Virginia Bankruptcy Attorney Can Do

• Determine which bankruptcy chapter is right for your financial situation
• Compare Virginia state vs. federal exemptions to maximize asset protection
• Help you qualify for the enhanced $100,000 homestead if you're elderly or disabled
• Calculate whether you qualify for Chapter 7 using the Virginia means test
• Navigate Virginia-specific bankruptcy procedures and local court rules
• Complete and file all required bankruptcy paperwork correctly
• Represent you at the 341 meeting of creditors
• Handle any objections from creditors or the bankruptcy trustee
• Guide you through the entire process from filing to discharge

Cost of Filing Bankruptcy in Virginia

Chapter 7 bankruptcy attorney fees in Virginia vary by location:

• Northern Virginia (Arlington, Fairfax, Loudoun): $1,400 to $2,000 plus $338 filing fee
• Richmond metro area: $1,200 to $1,700 plus $338 filing fee
• Hampton Roads (Norfolk, Virginia Beach): $1,100 to $1,600 plus $338 filing fee
• Roanoke, Charlottesville: $1,000 to $1,500 plus $338 filing fee
• Other Virginia cities and rural areas: $900 to $1,400 plus $338 filing fee

Chapter 13 attorney fees typically range from $3,000 to $4,500 plus a $313 filing fee. In Chapter 13, attorney fees are usually paid through your repayment plan rather than upfront.

Northern Virginia attorney fees tend to be higher due to the area's high cost of living and proximity to Washington, D.C. Many Virginia attorneys offer payment plans for Chapter 7 to make bankruptcy more accessible.

Virginia-Specific Bankruptcy FAQs

Can I keep my house in Virginia bankruptcy?

It depends on your equity and age/disability status. If you're under 65 and not disabled, you can protect up to $25,000 equity using Virginia state exemptions (or $27,900 with federal exemptions). If you're 65 or older or disabled, Virginia's $100,000 homestead exemption is one of the best in the nation and protects most homes. If your equity exceeds your applicable exemption, you may need to file Chapter 13 to keep your home.

Can I keep my car in Virginia bankruptcy?

Yes, in most cases. Virginia allows you to exempt up to $6,000 of equity in one motor vehicle under state exemptions, which is higher than the federal exemption of $4,450. If you owe more than your car is worth or have equity within this limit, you can typically keep it by continuing to make payments through a reaffirmation agreement.

Should I choose state or federal exemptions in Virginia?

It depends on your specific assets. Choose Virginia state exemptions if you're elderly or disabled (the $100,000 homestead is exceptional), have significant vehicle equity (Virginia allows $6,000 vs federal $4,450), or have valuable tools of trade (Virginia allows $10,000 vs federal $2,800). Choose federal exemptions if you have little home equity and want the larger wildcard exemption (up to $15,425) to protect cash, bank accounts, or other property.

What if I'm elderly - do I automatically get the higher homestead exemption?

If you are age 65 or older at the time of filing, or if you qualify as disabled under Social Security Administration criteria, you automatically qualify for Virginia's $100,000 homestead exemption instead of the standard $25,000. You must provide proof of age (birth certificate, driver's license) or disability status when claiming this exemption.

How does bankruptcy affect military servicemembers in Virginia?

Virginia has a large military population due to bases like Norfolk Naval Station, Fort Belvoir, and Quantico. Bankruptcy is available to active-duty military members, veterans, and military families. Military retirement pay is protected, and the Servicemembers Civil Relief Act (SCRA) provides additional protections during active duty. Virginia bankruptcy attorneys experienced with military issues can help navigate these special considerations.

Can I protect my security clearance if I file bankruptcy in Virginia?

Many Virginia residents, especially in Northern Virginia, hold federal security clearances. Filing bankruptcy does not automatically cause you to lose your clearance. In fact, addressing financial problems through bankruptcy may be viewed more favorably than having unresolved debts. Security clearance adjudicators consider overall financial responsibility, and bankruptcy can demonstrate you're taking steps to resolve financial issues. Consult with your security officer and a Virginia bankruptcy attorney.

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