Bankruptcy in Virginia
Crushing debt can creep in slowly—until suddenly, it’s all you can think about.
Filing for bankruptcy can immediately stop most collection efforts and give you structure. It’s not about starting over with nothing—it’s about protecting what you can while eliminating what you can’t manage.
Virginia law also provides specific exemptions that can help you hold on to your home, car, and retirement savings. But every case is different, and choosing the wrong path could cost you more than you expect.
That’s where we come in. We connect Virginia residents with experienced bankruptcy attorneys who can walk you through your options. Don’t wait for things to get worse—take the first step toward financial relief today.
Types of Bankruptcy in Virginia
Bankruptcy is a legal tool designed to help individuals and businesses get back on track when debt becomes unmanageable. It can reduce or eliminate certain financial obligations and provide a path toward a more stable future
That said, not every debt can be wiped out. Child support, alimony, some taxes, and most student loans will remain.
If you’re struggling, you may qualify to file under Chapter 7, 11, or 13—each with its own rules and outcomes. A bankruptcy attorney can help you review your options and make an informed decision.
In Virginia, bankruptcy cases are handled by two federal courts: the U.S. Bankruptcy Court for the Western District of Virginia and the Eastern District of Virginia.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy can be a practical solution for people who need a clean break from unmanageable debt. It gives you the chance to wipe out certain obligations and make a fresh financial start. But before you move forward, it’s important to evaluate whether your income qualifies. A bankruptcy attorney in Virginia can walk you through the process and help determine if this type of liquidation plan is the right fit.
Most people who are approved for Chapter 7 have either lost their income or faced a major financial setback. While this option can eliminate a wide range of unsecured debt, it often comes with tradeoffs. You may have to surrender property that isn’t protected under state or federal exemptions. Filing triggers an automatic stay, which pauses most collection efforts like foreclosures, garnishments, or creditor lawsuits.
If you’re considering Chapter 7, the means test is a critical step in determining your eligibility. This test compares your average monthly income over the past six months to the state’s median income. As of 2025, the median annual income thresholds in Virginia are:
- 1 person: $75,202
- 2 people: $95,030
- 3 people: $113,939
- 4 people: $141,414
- 5 people: $151,314
- 6 people: $161,214
- 7 people: $171,114
- 8 people: $181,014
- 9 people: $190,914
- For each additional person beyond nine, add $9,900.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is one of the more involved forms of debt relief. Rather than wiping out debt or following a preset repayment plan, it gives you the chance to reorganize what you owe. This reorganization often takes place throughout four to eighteen months, though timelines can vary.
Filing for Chapter 11 bankruptcy involves more than just asking the court for help. It requires a clear, detailed presentation of your finances and a workable plan to repay. Whether you’re an individual or a business, you’ll need to show that your reorganization plan is feasible and supported by accurate documentation.
The process starts with a petition and includes several required forms that give the court and your creditors a full view of your financial condition. These forms typically include:
- Voluntary Petition for Chapter 11
- Schedules of Assets and Liabilities
- Schedule of Current Income and Expenditures
- Statement of Financial Affairs
- List of Executory Contracts and Unexpired Leases
- List of Creditors with claim amounts
- Disclosure Statement (explaining the plan in detail)
- Proposed Reorganization Plan
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is for people who have a steady income but need help managing their debt. In VA, once you file, the court appoints a trustee to review your finances.
This type of bankruptcy doesn’t involve liquidating your property. Instead, it allows you to restructure your debt through a repayment plan that typically lasts three to five years. In some cases, the court may even discharge a portion of your remaining debt.
Chapter 13 bankruptcy differs from other types because it’s not about erasing debt. It’s about catching up. If you have a regular income but need more time, Chapter 13 gives you the chance to create a structured plan.
The process also involves a trustee who reviews your financial information and oversees your case. You’ll propose a repayment plan that must be approved by the court and based on your income, living expenses, and the value of your property. Once it’s in place, you’ll make monthly payments that go toward reducing your debt. As long as you stick to the plan, you may be able to protect your home, car, and other key assets.
The Bankruptcy Process in Virginia
There’s no perfect moment to file for bankruptcy. But if your financial situation is so strained that you can’t realistically pay down your debts within five years, it might be time to consider it.
In Virginia, the process begins with pulling together a full overview of your finances. That means documenting your income, expenses, assets, and outstanding debts. The court relies on this information to evaluate your case and determine which type of bankruptcy you may qualify for.
Virginia mandates the use of its exemption laws, meaning you cannot opt for federal bankruptcy exemptions. These exemptions are designed to help you retain essential assets:
- Homestead Exemption: Protects up to $25,000 of equity in your primary residence. Additional amounts may be available based on age and dependents.
- Motor Vehicle Exemption: Allows up to $6,000 in equity for one vehicle.
- Personal Property Exemptions:
- Household furnishings and appliances up to $5,000.
- Clothing up to $1,000.
- Firearms up to $3,000.
- Family heirlooms up to $5,000.
- Wedding and engagement rings.
- Pets and medically prescribed health aids.
- Family Bible and burial plot.
- Tools of the Trade: Up to $10,000 for tools, books, and equipment necessary for your occupation.
- Wildcard Exemption: Unused portions of the homestead exemption can be applied to other property.
- Retirement Accounts: Most tax-exempt retirement accounts are fully protected under federal law.
Work With an Experienced Virginia Lawyer
If you’re a Virginia resident facing mounting debt, bankruptcy may be the reset you need. From stopping collections to organizing manageable payments, bankruptcy can provide real relief when it matters most.
You don’t have to face this process alone. We can connect you with an experienced bankruptcy attorney in Virginia who understands both the state and federal systems.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.
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