Filing Chapter 7 Bankruptcy in Virginia (2026)
Reviewed by DocDraft Legal Team · Virginia · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep in Virginia is set by Virginia's own exemption statutes. Virginia is an opt-out state: under Va. Code 34-3.1 you must use Virginia exemptions and cannot elect the federal 522(d) list. This page explains Virginia's homestead exemption under Va. Code 34-4, the poor debtor's exemptions for vehicles and household goods under Va. Code 34-26, the means-test median income for Virginia, and the two federal bankruptcy courts where Virginians file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, child support, or spousal support.
Does Virginia use state or federal bankruptcy exemptions?
Virginia is an opt-out state. Under Va. Code 34-3.1, a debtor filing bankruptcy in Virginia may not claim the federal 11 U.S.C. 522(d) exemptions and must use Virginia's own exemptions instead. That means your protected property is governed by Title 34 of the Virginia Code, chiefly the homestead exemption and the poor debtor's exemption.
Can I keep my house if I file Chapter 7 in Virginia?
Often yes. Under Va. Code 34-4, a householder may exempt real or personal property used as a principal residence up to $50,000 in value. If your home equity fits within that homestead amount, Chapter 7 in Virginia generally lets you keep the house. Married co-owners who both file can each claim the exemption.
Can I keep my car if I file Chapter 7 in Virginia?
Usually yes if your equity is modest. Under Va. Code 34-26, Virginia's poor debtor's exemption protects motor vehicles up to a total of $10,000 in value. A perfected security interest, such as a car loan, has priority over the exemption, so the figure protects your equity above what you still owe on the vehicle.
What is the income limit to file Chapter 7 in Virginia?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for Virginia are $78,491 for one earner, $101,171 for two, $123,159 for three, and $144,826 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
Virginia's Opt-Out Rule, the Va. Code 34-4 Homestead, and Where Virginians File
Virginia is a bankruptcy opt-out state. Under Va. Code 34-3.1, a debtor filing in Virginia may not claim the property listed in subsection (d) of 11 U.S.C. 522, so you must use Virginia's own exemptions rather than the federal set. Virginia's headline protection is the homestead exemption under Va. Code 34-4, which lets a householder exempt real or personal property used as a principal residence up to $50,000 in value, plus money and debts due the householder up to $5,000 (or up to $10,000 if the householder is 65 or older). Additional homestead amounts are available for certain disabled veterans under Va. Code 34-4.1 and for a householder supporting dependents under Va. Code 34-4.2. Vehicles and household goods fall under the poor debtor's exemption in Va. Code 34-26: up to $10,000 in motor vehicles, up to $5,000 in household furnishings, and up to $10,000 in tools of a trade. These dollar limits adjust for inflation beginning April 1, 2027. Virginians file in one of two federal bankruptcy courts: the U.S. Bankruptcy Court for the Eastern District of Virginia or the Western District of Virginia, based on where they have lived for most of the prior 180 days.
Relevant Laws
Virginia Homestead Exemption (Va. Code 34-4)
Creates Virginia's homestead exemption, letting a householder exempt real or personal property used as a principal residence up to $50,000, plus money and debts due up to $5,000, or up to $10,000 if the householder is 65 or older. This is the exemption that lets many Virginia homeowners keep their house in Chapter 7.
Virginia Bankruptcy Opt-Out (Va. Code 34-3.1)
The statute by which Virginia opts out of the federal exemptions. It bars any individual from exempting in bankruptcy the property specified in subsection (d) of 11 U.S.C. 522, so Virginia filers must use Virginia's own exemptions rather than the federal 522(d) list.
Virginia Poor Debtor's Exemption (Va. Code 34-26)
Virginia's poor debtor's exemption, protecting up to $5,000 in household furnishings, up to $10,000 in motor vehicles, and up to $10,000 in the tools and equipment of a trade or occupation, subject to any perfected security interest. This covers vehicles and personal property in a Virginia Chapter 7.
Federal Bankruptcy Code Exemptions and Means Test (11 U.S.C. 522, 707)
The federal law behind Chapter 7. Section 522(b)(2) lets a state opt out of the federal 522(d) exemptions, which Virginia has done, and section 707(b) sets the means test measured against state median income.
Regional Variances
Virginia Chapter 7 Exemption Table
Homestead
Va. Code 34-4: real or personal property used as a principal residence exempt up to $50,000 in value, plus money and debts due the householder up to $5,000, or up to $10,000 if the householder is 65 or older. Additional homestead is available for certain disabled veterans (34-4.1) and for householders supporting dependents (34-4.2).
Motor vehicle
Va. Code 34-26(8): motor vehicles not held as tools of a trade are exempt up to a total of $10,000 in value. A perfected security interest, such as a car loan, has priority over the exemption, so the figure protects your equity above the loan balance.
Wildcard and money
Virginia has no separate large wildcard, but the Va. Code 34-4 homestead can be applied to any real or personal property, and the same statute exempts money and debts due the householder up to $5,000, or up to $10,000 for a householder 65 or older. The dependent and veteran additions further increase the amount that can be set apart.
Personal property
Va. Code 34-26, the poor debtor's exemption, protects up to $5,000 in household furnishings such as beds, appliances, and kitchenware, along with wearing apparel, family Bibles, wedding and engagement rings, family portraits and heirlooms, and medically necessary health aids, in the enumerated categories.
Wages
Va. Code 34-29: earnings are protected from garnishment to the extent set by the federal wage-garnishment limit, generally the lesser of 25 percent of weekly disposable earnings or the amount above 40 times the federal minimum wage. This wage protection carries into a Virginia Chapter 7 as part of the state exemption set.
Retirement and tools
Va. Code 34-34 exempts most tax-qualified retirement plans and IRAs from creditor process, up to the limits in the statute, and ERISA-qualified plans are separately excluded from the bankruptcy estate under federal law. Tools, books, and equipment of a trade or occupation are exempt up to $10,000 under Va. Code 34-26(7).
Suggested Compliance Checklist
Confirm the current Virginia means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee Virginia median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $78,491 for one, $101,171 for two, $123,159 for three, and $144,826 for four, adding $11,100 per additional person.
Complete the pre-filing credit counseling course
Within 180 days before filing days after startingTake an approved credit counseling course from a provider authorized for your Virginia district and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.
Apply Virginia's exemptions and record any homestead deed
Before preparing your schedules days after startingMatch your assets to Virginia's exemptions: the Va. Code 34-4 homestead for home equity, the Va. Code 34-26 poor debtor's exemption for your vehicle and household goods, and Va. Code 34-29 for wages. Virginia's homestead may require recording a homestead deed to perfect the claim, so value your property carefully first.
Prepare and file your petition and schedules
Filing day days after startingFile your petition, schedules, and exemption claims in the correct court: the U.S. Bankruptcy Court for the Eastern or Western District of Virginia, based on where you have lived for most of the prior 180 days. Filing triggers the automatic stay that pauses collection and garnishment.
Attend the 341 meeting and finish the debtor education course
Before discharge days after startingAttend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the current Virginia means-test median income | Check your household size against the U.S. Trustee Virginia median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $78,491 for one, $101,171 for two, $123,159 for three, and $144,826 for four, adding $11,100 per additional person. | - | Before you file |
| Complete the pre-filing credit counseling course | Take an approved credit counseling course from a provider authorized for your Virginia district and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed. | - | Within 180 days before filing |
| Apply Virginia's exemptions and record any homestead deed | Match your assets to Virginia's exemptions: the Va. Code 34-4 homestead for home equity, the Va. Code 34-26 poor debtor's exemption for your vehicle and household goods, and Va. Code 34-29 for wages. Virginia's homestead may require recording a homestead deed to perfect the claim, so value your property carefully first. | - | Before preparing your schedules |
| Prepare and file your petition and schedules | File your petition, schedules, and exemption claims in the correct court: the U.S. Bankruptcy Court for the Eastern or Western District of Virginia, based on where you have lived for most of the prior 180 days. Filing triggers the automatic stay that pauses collection and garnishment. | - | Filing day |
| Attend the 341 meeting and finish the debtor education course | Attend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions. | - | Before discharge |
Frequently Asked Questions
Under Va. Code 34-4, a householder in Virginia may exempt real or personal property used as a principal residence up to $50,000 in value, plus money and debts due the householder up to $5,000, or up to $10,000 if the householder is 65 or older. Additional amounts apply for certain veterans under 34-4.1 and for householders supporting dependents under 34-4.2.
Va. Code 34-26, Virginia's poor debtor's exemption, protects specific categories of personal property regardless of a homestead claim. It covers up to $5,000 in household furnishings, up to $10,000 in motor vehicles, and up to $10,000 in the tools, books, and equipment of your occupation or trade. A perfected security interest, like a loan, has priority over these exemptions.
No. Chapter 7 discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or spousal support, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan.
You file in the federal bankruptcy court for your area: the U.S. Bankruptcy Court for the Eastern District of Virginia or the Western District of Virginia. The Eastern District has divisions including Alexandria, Richmond, Norfolk, and Newport News; the Western District includes Roanoke, Lynchburg, and Harrisonburg. You file where you have lived for most of the prior 180 days.
Under Va. Code 34-29, Virginia protects your earnings from garnishment to the same extent as the federal wage-garnishment cap: creditors generally cannot reach more than 25 percent of your weekly disposable earnings, or the amount by which those earnings exceed 40 times the federal minimum wage, whichever is less. This wage protection is part of Virginia's exemption set you use in Chapter 7.
Other Virginia guides
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