In the state of Virginia can they take your home if you file bankruptcy, the home is paid off?
my spouse (not me ) is over 40K in debt he is retired and gets a monthly income of about 1,800.00 after taxes. I would like for him to file bankruptcy, he wants to save his credit and take out a loan on the home to pay the credit off. (which sounds good because it would to cheaper to pay the loan back and he can pay it back in about six years) but my thing is that the 1,800 is all that he has as income, with the economy if his company says they have no more money to pay pension we will be out on the street.
What do you guys think would be the best.
If their ae any bankruptcy lawyers logged on please type in your info so when can call and speak with you.
Posted September 10th, 2010 in Bankruptcy Q and A. Tagged: ae, bankruptcy lawyers, economy, money, six years.
Caveat: Not giving legal advice.
A quick look at Virginia’s exemptions tells me that his house can be ordered sold.
ASSET
EXEMPTION DESCRIPTION
LAW SECTION
Homestead
$5000 plus $500 per dependent; may also claim rents & profits; sale proceeds exempt to $5000 (husband and wife may double), Cheeseman v. Nachman, 656 F. 2d 60 (4th Cir. 1981); unused portion of homestead may be applied to any personal property
May include mobile home
Must file homestead declaration before filing for bankruptcy
Property held as tenancy by the entirety may be exempt against debts owed by only one spouse
34-4,
34-18,
34-20
In re Goad, 161 B.R. 161
(W.D. Va. 1993)
34-6
In re Harris, 155 B.R. 948
(E.D. Va. 1993)
Insurance
Accident or sickness benefits
Burial society benefits
Cooperative life insurance benefits
Fraternal benefit society benefits
Group life or accident insurance for government employees
Group life insurance policy or proceeds
Industrial sick benefits
38.2-3549
38.2-4021
38.2-3811
38.2-4118
51.1-510
38.2-3339
38.2-3549
Miscellaneous
Property of business partnership
50-25
Pensions
Also see wages
City, town & county employees
ERISA-qualified benefits to $17,500 per year
Judges
State employees
51.1-802
34-34
51.1-102
51.1-102
Personal Property
You must be a householder to exempt any personal property
Bible
Burial plot
Clothing to $1000
Family portraits and heirlooms to $5000 total
Health aids
Household furnishings to $5000
Motor vehicle to $2000
Personal injury causes of action
Personal injury recoveries
Pets
Wedding and engagement rings
34-26(1)
34-26(3)
34-26(4)
34-26(2)
34-26(6)
34-26(4) (a)
34-26(8)
34-28.1
34-28.1
34-26(5)
34-26(1) (a)
Public Benefits
Aid to blind, aged, disabled, AFDC, general relief
Crime victims’ compensation unless seeking to discharge debt for treatment of injury incurred during crime
Unemployment compensation
Workers’ compensation
63.1-88
19.2-368.12
60.2-600
65.2-531
Tools of Trade
Horses, mules, (pair) with gear, wagon or cart, tractor to $3000, plows (2), drag, harvest, cradle, pitchfork, rake, iron wedges (2), fertilizer to $1000 of farmer (you must be a householder)
Tools, books and instruments of trade, including motor vehicles, to $10,000, needed in your occupation or education (you must be a householder)
Uniforms, arms, equipment of military member
34-27
34-26
44-96
Wages
Minimum 75% of earned but unpaid wages, pension payments; bankruptcy judge may authorize more for low-income debtors
34-29
Wild Card
Unused portion of homestead, of any personal property
$2000 of any property for disabled veterans (you must be a householder)
34-13
34
September 10th, 2010 at 10:40 am