How to File Bankruptcy in Virginia (2025)

Virginia bankruptcy exemptions let you keep essential property when you file Chapter 7 or Chapter 13, including homestead, vehicle, and a wildcard, subject to Virginia's rules. This guide explains how Virginia bankruptcy exemptions work, filing bankruptcy in Virginia, and when Chapter 7 vs. Chapter 13 makes sense.

You'll learn what property is protected, how the means test affects eligibility, and what paperwork and deadlines to expect in Virginia courts. If you're weighing debt relief options, use this overview to decide whether to file, what you can keep, and how to prepare the right forms.

What Are Virginia Bankruptcy Laws and Who Qualifies?

If you're struggling financially and aren't sure what to do, filing for bankruptcy in Virginia can provide a structured, lawful way to rebuild your finances. Economic changes are making it increasingly difficult for American families to weather job losses, illnesses, and other emergencies, leading to a rise in bankruptcy filings nationwide.

While bankruptcy is governed by federal law, Virginia statutes play a crucial role in determining which assets you can keep. The U.S. Bankruptcy Code unwinds contracts between you and your creditors, granting you a fresh start while protecting qualifying property under state exemption laws.

How to File Bankruptcy in Virginia: Chapter 7 vs. 13

These are the key steps to file for Chapter 7 or Chapter 13 in Virginia, and how to decide which chapter best fits your goals.

Chapter 7 Bankruptcy Virginia: Fast Debt Relief

If your primary goal is to erase debt fast, Chapter 7 bankruptcy is the best option. It eliminates unsecured debts, such as credit cards and medical bills, typically within a few months. However, you could lose property exceeding Virginia's exemption limits because the Chapter 7 trustee can sell that property to repay creditors.

Take the bankruptcy eligibility quiz. Find out about particular issues and whether you qualify by taking the Chapter 7 bankruptcy quiz.

Chapter 13 Bankruptcy in Virginia: Keep Your Property

Chapter 13 creates a repayment plan lasting three to five years and requires consistent income to sustain payments. Chapter 13 can help prevent foreclosure or repossession, allowing filers to keep assets like homes and cars while catching up on missed mortgage or vehicle payments.

Try the payment calculator. Estimate your Chapter 13 repayment plan in minutes using the Chapter 13 payment calculator.

Virginia Bankruptcy Exemptions: Homestead, Vehicle, and Wildcard

Here are the main Virginia bankruptcy exemptions that protect your home, car, tools, and more when you file. You keep assets protected by specific bankruptcy exemptions. In Chapter 7, nonexempt property is sold for the creditors. In Chapter 13, you can keep nonexempt property by paying its value in your repayment plan.

Eligibility: Understanding the Virginia Bankruptcy Means Test

Your eligibility for Chapter 7 or Chapter 13 bankruptcy depends on several factors, including your income, debt levels, and previous bankruptcy filings.

Virginia Chapter 7 Income Requirements

The steps you'll need to take will depend on whether your income falls below or above your state's median income. The U.S. Trustee Program "Means Testing" page has current amounts.

Income below median. If your gross yearly family income is below Virginia's median income for your family size, you will likely qualify for Chapter 7. As of May 15, 2025, you would be eligible at or below the following limits:

• $77,420 for a one-person household
• $97,833 for a two-person household
• $117,300 for a three-person household, and
• $145,585 for a four-person household.

Income above median. If your gross family income exceeds the median, an additional "means test" calculation is necessary to determine your eligibility. This test assesses your disposable income to see if you have the ability to repay a portion of your debts.

Tip. The means test looks at the prior six months of income. If your current income and expenses reveal that you can afford to repay some debt, you won't qualify for Chapter 7. Expect the trustee to evaluate this during the review of your paperwork.

Virginia Chapter 13 Eligibility Rules

A fundamental requirement for Chapter 13 is having a regular income source to fund your repayment plan. Also, your total debt must fall within specific limits, which are updated periodically (check the chart above for current amounts).

Additional Eligibility Requirements for both Chapters 7 and 13

Regardless of the chapter you choose, you are required to complete a credit counseling course from an approved agency within 180 days before filing for bankruptcy. Also, if you have previously filed for bankruptcy, specific waiting periods apply before you can receive another discharge.

For Chapter 7, you must wait 8 years after a previous Chapter 7 discharge or 6 years after an earlier Chapter 13 discharge. For Chapter 13, you must wait 4 years after a previous Chapter 7 discharge or 2 years after an earlier Chapter 13 discharge.

Step-by-Step: How to File for Bankruptcy in Virginia

When you first file, both the Chapter 13 and Chapter 7 processes are similar.

Complete Credit Counseling

Complete a U.S. Trustee-approved credit counseling course within 180 days before filing. Also, make sure you are prepared to file for bankruptcy by securing housing, transportation, and a bank account in good standing.

Fill Out Bankruptcy Forms

Gather all financial documents you'll need to complete and file the bankruptcy forms, including pay stubs, tax returns, bank statements, and debt lists (we've highlighted what you'll need below).

File in the Correct Virginia District

File your forms with the Virginia district bankruptcy court. On the websites of the Western Virginia Bankruptcy Court and the Eastern Virginia Bankruptcy Court, you'll find instructions for filing your paperwork, local rules, and more. Fees can be waived or paid in installments. Once you file, the automatic stay will go into effect. Almost all collection efforts, lawsuits, garnishments, and foreclosures stop when you file.

Attend the 341 Meeting of Creditors

Attend this mandatory court-supervised session. After the 341 meeting, all filers complete the second required U.S. Trustee-approved course, debtor education. Chapter 13 filers must also attend a plan confirmation (approval) hearing and complete the repayment plan.

Receive the Discharge

After fulfilling requirements, the court issues a discharge order that erases eligible debts.

After Filing for Bankruptcy in Virginia

After discharge, you'll want to maintain financial stability by reviewing your credit report and rebuilding credit. Maintaining emergency savings is another good way to avoid another bankruptcy.

Learn more details about bankruptcy and whether it's better to file for Chapter 7 or 13.

Virginia Bankruptcy FAQs 2025

• Can I keep my car if I file for bankruptcy in Virginia?
• Will I lose my house in bankruptcy in Virginia?
• Can I file bankruptcy again if I've filed before?
• How much does bankruptcy cost?
• How long does bankruptcy stay on my credit report?
• How long does Chapter 7 take in Virginia?
• Can I file bankruptcy without a lawyer in Virginia?
• What debts can't be discharged in a Virginia bankruptcy?

Can I keep my car if I file for bankruptcy in Virginia?

You can keep a vehicle if your equity is within the exemption limit. If it's financed, you must be and stay current on payments in Chapter 7. You can catch up on missed payments and keep your car in Chapter 13.

Will I lose my house in bankruptcy in Virginia?

As long as your home equity is exempt and you stay current on payments, you should be able to keep your house in Chapter 7. If you're behind on payments, Chapter 13 allows you to catch up and keep your home. Learn which chapter to file to keep your house.

Can I file bankruptcy again if I've filed before?

Yes, but waiting periods apply. You must wait eight years between Chapter 7 filings. The time is reduced to six years if you choose to file for Chapter 13 after filing for Chapter 7.

How much does bankruptcy cost?

You'll pay filing fees, counseling and debtor education course fees, as well as attorney costs, which vary according to the bankruptcy chapter and case complexity. A Chapter 7 case typically costs between $1,800 and $3,500. You'll likely pay $3,500 to $5,000 for Chapter 13. Chapter 7 costs must be paid in full before filing. However, legal fees can be included in the Chapter 13 plan.

How long does bankruptcy stay on my credit report?

Chapter 7 remains on your credit report for up to 10 years. Chapter 13 stays on your credit report for seven years. However, the impact diminishes over time, and many people see credit improvement within a year or two.

How long does Chapter 7 take in Virginia?

Chapter 7 typically takes three to five months to complete. While you'll receive your discharge within that time, the case could remain open longer if the trustee needs to sell property or resolve litigation.

Can I file bankruptcy without a lawyer in Virginia?

Many people can file for bankruptcy without a lawyer if they're willing to do the proper research. Simple Chapter 7 cases tend to be the most successful—those with dischargeable debts and minimal assets. Bankruptcy courts advise against filing a Chapter 13 without a lawyer because Chapter 13 cases are complicated and rarely successful without a lawyer's help.

What debts can't be discharged in a Virginia bankruptcy

You won't be able to eliminate support obligations and most taxes. Student loans can be eliminated, but you must file a bankruptcy lawsuit and prove that paying the loans would be an "undue hardship." Learn more about nondischargeable debts in bankruptcy.

Getting Legal Help With Virginia Bankruptcy

Did you know Nolo has made the law accessible for over fifty years? It's true, and we wholeheartedly encourage research and learning. However, online articles and resources can't address all bankruptcy issues and aren't written with the facts of your particular case in mind. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.