"Virginia Homestead Exemption"
In general terms, a homestead for purposes of a Virginia bankruptcy case is the primary residence of the debtor.
16 states allow the election of either state statutory allowances for homestead values, or the federal exemption
provided by 11 U.S.C. 522 which limits homestead values to $18,450 in equity under current amendments.
| 11 U.S.C. §522 provides, in part, "(d) The following property may be exempted under
subsection (b)(1) of this section: (1) The debtor's aggregate interest, not to exceed $15,000 in value, in
real property or personal property that the debtor or a dependent of the debtor uses as a residence, in a
cooperative that owns property that the debtor or a dependent of the debtor uses as a residence, or in a
burial plot for the debtor or a dependent of the debtor." |
On March 5, 2004 the Virginia Bankruptcy Courts adopted newly adjusted dollar amounts which apply throughout
the Code. The changes became effective April1, 2004. The adjusted amounts affect the values throughout carious
Code sections, including the eligibility requirement for debtors who file Chapter 13, the value of claims which
the Code treats as a priority claim, the amount of creditor claims need to instigate an involuntary petition,
and the amount of luxury goods and services which may be considered nondischargeable if acquired within 30 days
of filing. These changes to Virginia bankruptcy law were based on the Consumer Price Index published by the US
Dept. of Labor, and increase values to reflect rising prices. These changes became mandatory every three years
beginning in 1994.
Back to Virginia Bankruptcy Court words & phrases.
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