What Is The Virginia Homestead Exemption
What Is The Virginia Homestead Exemption?
What is the Virginia homestead exemption? The Virginia homestead exemption is a right granted under the Virginia law and can be found in 34- 4 of the Virginia Code Annotated. The exemption provides for $5,000 of protection per person on any asset the person chooses – such as money in bank or tax refunds. In addition, you get another $500 of protection for each dependent 18 or younger. If the filer is over 65 the exemption jumps up to $10,000, and disabled veterans get another $10,000 on top of that.
Virginia code 34-4 was updated on July 1, 2020, to also include a $25,000 home equity exemption for your principal residence in Virginia if the property is in the filer’s name. If filing jointly with your Spouse this jumps to $50,000 of home equity exemption for your principal residence in Virginia if the house is in both names.
Exemptions are used to protect assets from creditors. So if a creditor slaps a garnishment on your bank account, you can protect that money up to the amount available under the homestead exemption from being turned over to the creditor.
Who can use the Virginia Homestead Exemption?
You need to be able to claim Virginia exemptions, which typically means being a resident of the state for at least two years prior to filing your bankruptcy case. If you haven’t been in Virginia for two years, you will need to use your prior state of residence, or perhaps federal exemptions.
For more information on the Virginia Homestead Exemption and other related bankruptcy matters contact Fisher-Sandler for your FREE consultation. We offer phone, in-office and virtual online consultations (you choose). During your consultation, we can answer any questions or concerns you may have when considering filing for bankruptcy in Virginia. After our meeting you will leave with a strategy on how to get the fresh start you deserve. Stop those harassing phone calls and letters today, call Fisher-Sandler “Home Of The $0 Down Bankruptcy” at (703) 967-3315 or (703) 691-1642.