HOW MUCH MONEY AND ASSETS CAN I PROTECT IN CHAPTER 7
In Virginia, Chapter 7 Bankruptcy has generous protections of your assets. You likely qualify to keep your vehicle, primary residents, household goods and some money in the bank. Read more about thresholds for retaining your assets in a Chapter 7 Bankruptcy.
- Car: You can have up to $6,000 in equity in your vehicle, if the car is paid off. If it has a lien you subtract the lien from the Blue Book value. Example: a car worth $20K that has a lien of $21K would have no equity. You only use the exemption if you need to and most cars have little equity.
- Real Estate: Usually you need about 15 % equity over the debt for the trustee to really take a look at your real estate assets.
- Bank Accounts & Tax Refunds: You can typically retain about $5,000, plus $500 extra per dependent.
- Household Goods: Retain up $10,000 of household goods at their current resale value, versus replacement cost–what it cost to purchase the item new. Think yard sale pricing. The Trustee does not want your used furniture.
- Retirement Accounts: 401K and similar accounts are fully protected.
- Pass Through: A car and a house that you own with little equity, and funds in bank accounts of up to $5,000 or so, or even general personal property and a retirement plan will pass easily through a Chapter 7.