Bankruptcy in Virginia

Virginia has two federal bankruptcy districts. Chapter 7 fees range from $1,200-$2,500, Chapter 13 costs $2,800-$6,500. Virginia exemptions include a $5,000 homestead exemption (plus $500 per dependent), $6,000 motor vehicle exemption, and specific household goods exemptions. The homestead exemption is low compared to many states, making strategic planning important. Virginia allows a householder's exemption protecting up to $5,000 of real or personal property. The Eastern District has one of the nation's busiest bankruptcy courts given Northern Virginia's high cost of living and military population. Military members receive additional protections under the Servicemembers Civil Relief Act. Virginia's high housing costs in the DC suburbs drive many Chapter 13 filings for mortgage modification.