Virginia Bankruptcy Laws - Limitations

The Code of VA provides in § 34-5 - To what debts exemptions shall not apply - "The property exemptions created under this Code shall not be claimed against the following debts: 1. For the purchase price of such property or any part thereof. If the property purchased and not paid for is exchanged for or converted into other property by the debtor, such last named property shall not be exempted from the payment of such unpaid purchase money. 2. For spousal or child support obligations."

Operation of  laws

In practice, occupation of a home requires a physical presence of the debtor on a regular basis. Problems arise because of multiple tracts, absence from the state, and divorce proceedings which fracture the application of domicile rules. Clarifying both domicile and residency through a written designation prevents surprises. If the validity of a homestead exemption is in question, written agreements and designation provide many debtors with a solution. Note: Absence from the country because of military service can not form the sole basis of abandonment.

Back to Virginia Bankruptcy Law content page.