Virginia Bankruptcy Laws - Insurance and Benefits

The Code of VA allows the following insurance benefits to be exempt: Accident or sickness benefits - 38.2-3549, Burial society benefits - 38.2-4021, Cooperative life insurance benefits - 38.2-3811, Fraternal benefit society benefits - 38.2-4118, Group life or accident insurance for government employees - 51.1-510, Group life insurance policy or proceeds - 38.2-3339, Industrial sick benefits - 38.2-3549, City, town & county employees - 51.1-802, ERISA-qualified benefits to $17,500 per year - 34-34, Judges - 51.1-102, State employees - 51.1-102.

Operation of Virginia bankruptcy laws with the Code

According to 11 U.S.C. 522(l) "The debtor shall file a list of property that the debtor claims as exempt under subsection (b) of this section. If the debtor does not file such a list, a dependent of the debtor may file such a list, or may claim property as exempt from property of the estate on behalf of the debtor. Unless a party in interest objects, the property claimed as exempt on such list is exempt." The trustee, creditors, an interested party, or the Virginia bankruptcy court upon it's own motion, may file an objection to exemptions designated within a debtor's schedule. Denial requires notice to debtors and hearing.

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