Virginia Bankruptcy Laws - Public Benefits

The Code of VA allows the following public benefits to be exempt: Aid to blind, aged, disabled, AFDC, general relief - 63.1-88, Crime victims’ compensation unless seeking to discharge debt for treatment of injury incurred during crime - 19.2-368.12, Unemployment compensation - 60.2-600, Workers’ compensation - 65.2-531.

Operation of laws under 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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