Filing Chapter 7 Bankruptcy in West Virginia (2026)
Reviewed by DocDraft Legal Team · West Virginia · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep is set by West Virginia. West Virginia is an opt-out state: under W. Va. Code 38-10-4 you must use the West Virginia bankruptcy exemptions and cannot elect the federal 522(d) list. This page explains the West Virginia homestead exemption of up to $35,000 under 38-10-4(a), the $7,500 vehicle exemption, the wildcard, the means-test median income, and the two federal bankruptcy courts where West Virginians file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, or child and spousal support.
Does West Virginia use state or federal bankruptcy exemptions?
West Virginia is an opt-out state. Under W. Va. Code 38-10-4 the Legislature replaced the federal 522(d) list with its own bankruptcy exemption set. A West Virginia debtor must use these state exemptions and cannot choose the federal 11 U.S.C. 522(d) list. The categories mirror the federal set but carry West Virginia dollar figures.
Can I keep my house if I file Chapter 7 in West Virginia?
Often yes. Under W. Va. Code 38-10-4(a) the West Virginia homestead exemption protects up to $35,000 of equity in a residence you or a dependent occupy. A married couple who both own the home and file jointly can each claim it, protecting up to $70,000. If your equity fits, Chapter 7 generally lets you keep the house.
Can I keep my car if I file Chapter 7 in West Virginia?
Usually yes if your equity is modest. Under W. Va. Code 38-10-4(b) West Virginia exempts up to $7,500 of equity in one motor vehicle. If your car equity is at or below that figure, the vehicle is protected. Equity above $7,500 may be reachable by the trustee, though the wildcard exemption can sometimes cover the gap.
What is the income limit to file Chapter 7 in West Virginia?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for West Virginia are $63,908 for one earner, $68,592 for two, $92,050 for three, and $93,672 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
West Virginia's Opt-Out Rule, the 38-10-4 Homestead, and Where You File
West Virginia is a bankruptcy opt-out state. Under W. Va. Code 38-10-4, the Legislature enacted its own bankruptcy exemption list and requires debtors domiciled in the state to use it instead of the federal 11 U.S.C. 522(d) exemptions. The categories track the federal set but use West Virginia amounts. The headline homestead exemption under 38-10-4(a) protects up to $35,000 of equity in a residence, and a married couple who both own the home and file jointly can each claim it for up to $70,000 combined. West Virginia exempts up to $7,500 of equity in one motor vehicle under 38-10-4(b) and provides a wildcard under 38-10-4(e) of $800 plus any unused portion of the homestead exemption, so a renter or low-equity homeowner can shelter a meaningful amount of cash or other property. Household goods are protected up to $800 per item and $16,000 in total under 38-10-4(c), and tools of the trade up to $3,000 under 38-10-4(f). West Virginians file in one of two federal bankruptcy courts: the U.S. Bankruptcy Court for the Northern District of West Virginia or the Southern District of West Virginia, based on where they have lived for most of the prior 180 days.
Relevant Laws
West Virginia Bankruptcy Exemptions and Homestead (W. Va. Code 38-10-4)
The core West Virginia bankruptcy exemption statute. Subsection (a) sets the homestead exemption at up to $35,000 of equity in a residence. It also lists the vehicle, household goods, jewelry, wildcard, and tools-of-trade exemptions used in a West Virginia Chapter 7 case.
West Virginia Opt-Out from Federal Exemptions (W. Va. Code 38-10-4)
West Virginia has opted out of the federal exemptions. Section 38-10-4 supplies a state bankruptcy exemption list that a debtor domiciled in West Virginia must use in place of the federal 11 U.S.C. 522(d) set, so filers cannot choose the federal list.
West Virginia Wage Garnishment Limit (W. Va. Code 38-5A-3)
Caps how much of a debtor's earnings a creditor may garnish, limiting the take to disposable earnings above 30 times the federal minimum wage and to no more than 20 percent of disposable earnings, which protects wages both outside and inside bankruptcy.
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 West Virginia has done, and section 707(b) sets the means test measured against state median income.
Regional Variances
West Virginia Chapter 7 Exemption Table
Homestead
W. Va. Code 38-10-4(a): up to $35,000 of equity in real or personal property you or a dependent use as a residence, a cooperative interest, or a burial plot. A married couple who both own the home and file jointly can each claim it, protecting up to $70,000 combined.
Motor vehicle
W. Va. Code 38-10-4(b): up to $7,500 of equity in one motor vehicle. Equity above the figure may be reachable by the trustee, though the wildcard exemption can sometimes protect the excess.
Wildcard
W. Va. Code 38-10-4(e): $800 plus any unused portion of the $35,000 homestead exemption, applied to any property. Filers who do not use the full homestead can redirect the unused amount to protect cash or other assets.
Personal property
W. Va. Code 38-10-4(c): household furnishings, goods, apparel, appliances, books, animals, crops, and musical instruments held for personal or family use, up to $800 per item and $16,000 in total. Jewelry is exempt up to $2,000 under 38-10-4(d).
Wages
W. Va. Code 38-5A-3: wage garnishment is capped at disposable earnings exceeding 30 times the federal minimum wage, and never more than 20 percent of disposable earnings, a stronger protection than the federal 25 percent limit. Protected earnings are generally shielded in bankruptcy.
Retirement and tools
W. Va. Code 38-10-4(f): tools of the trade, professional books, and implements up to $3,000. Under 38-10-4(j) and (k), retirement benefits and tax-exempt retirement funds such as 401(k)s and IRAs are exempt to the extent reasonably necessary for the debtor's support; ERISA-qualified plans are also excluded from the estate under federal law.
Suggested Compliance Checklist
Confirm the current West Virginia means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee West 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 $63,908 for one, $68,592 for two, $92,050 for three, and $93,672 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 West 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 the West Virginia exemptions and value your assets
Before preparing your schedules days after startingWest Virginia is opt-out, so you must use the W. Va. Code 38-10-4 exemptions. Value your home, vehicle, and personal property so you can match assets to the $35,000 homestead, the $7,500 vehicle exemption, and the wildcard. You cannot elect the federal 522(d) list.
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 Northern or Southern District of West 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 West Virginia means-test median income | Check your household size against the U.S. Trustee West 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 $63,908 for one, $68,592 for two, $92,050 for three, and $93,672 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 West 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 the West Virginia exemptions and value your assets | West Virginia is opt-out, so you must use the W. Va. Code 38-10-4 exemptions. Value your home, vehicle, and personal property so you can match assets to the $35,000 homestead, the $7,500 vehicle exemption, and the wildcard. You cannot elect the federal 522(d) list. | - | 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 Northern or Southern District of West 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 W. Va. Code 38-10-4(a), the West Virginia homestead exemption protects up to $35,000 of equity in real or personal property that you or a dependent use as a residence, including a cooperative interest or a burial plot. A married couple who both own the home and file jointly can each claim it, protecting up to $70,000 of combined equity.
Under W. Va. Code 38-10-4(e), the West Virginia wildcard exemption is $800 plus any unused portion of the homestead exemption, applied to any property. A renter or a homeowner with little equity who does not use the full $35,000 homestead can redirect the unused amount, sheltering a substantial sum of cash or other assets the trustee would otherwise reach.
West Virginia has two federal bankruptcy courts. You file in the U.S. Bankruptcy Court for the Northern District or the Southern District of West Virginia, based on the county where you have lived for most of the 180 days before filing. Filing triggers the automatic stay that pauses collection and garnishment.
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.
West Virginia limits how much of your earnings a creditor can take. Under W. Va. Code 38-5A-3, weekly wage garnishment is capped at the amount by which disposable earnings exceed 30 times the federal minimum wage, and never more than 20 percent of disposable earnings, which is stricter than the federal 25 percent limit. Earnings protected from garnishment are generally shielded in bankruptcy as well.
Other West Virginia guides
Asset Protection Planning in West Virginia (2026)
Dealing With Debt Collectors in West Virginia (2026)
How to Break a Lease in West Virginia Legally (2026)
How to Dispute a Bill in West Virginia (2026)
How to File a Small Claims Lawsuit in West Virginia (2026)
How to File for Divorce in West Virginia (2026)
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