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  1. #1
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    allowable personal amount of dollars to keep after filing a chapter 7

    What is the name of your state (VA)?

    In a chapter 7 bankruptcy, how much money can be retained after filing?

    This makes no difference I believe, but not sure if you are,
    1.unemployed
    2. no income ,other than a refund from a tax return for tax yea 2017.
    3. starting a business
    4. tools for a new business

    If that would impact what the law allows an individual to retain in filing a chapter 7.

    thanks in advance
    kolabok


  2. #2
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    Quote Originally Posted by kolabok View Post
    What is the name of your state (VA)?

    In a chapter 7 bankruptcy, how much money can be retained after filing?

    This makes no difference I believe, but not sure if you are,
    1.unemployed
    2. no income ,other than a refund from a tax return for tax yea 2017.
    3. starting a business
    4. tools for a new business

    If that would impact what the law allows an individual to retain in filing a chapter 7.

    thanks in advance
    kolabok
    You can find what you need at the Virginia State Bar website; I've pasted an excerpt dealing with personal exemptions below. You can find the full text here: http://www.vsb.org/site/publications/the-bankruptcy-process

    "The Bankruptcy Code allows the individual debtor to retain certain property as “exempt.” Exempt property is free of the claims of creditors and cannot be taken by the trustee to be liquidated. Virginia law determines the types and amount of exempt property. The debtor is entitled to a “homestead exemption” which allows each debtor to claim a one-time exemption of up to $5,000 (plus $500 for each dependent) in any kind of property. The debtor is also entitled to a specific exemption, sometimes referred to as the “poor debtor’s exemption,” in different types of property (for example, clothes up to $1,000; household furnishings up to $5,000; tools of a person’s trade or business up to $10,000). Other types of property (such as proceeds from a personal injury settlement or award and certain contributions to qualified pension plans or IRAs) may also be exempt under Virginia law. You must claim the property as exempt in your bankruptcy schedules and to claim the homestead exemption, you or your lawyer must also properly prepare and file a “homestead deed” within a certain time limit. Creditors or the bankruptcy trustee can challenge the type or amount of the exemptions claimed by the debtor. Once you have claimed an exemption, you cannot claim it again in another case."


  3. #3
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    Quote Originally Posted by Shadowbunny View Post
    You can find what you need at the Virginia State Bar website; I've pasted an excerpt dealing with personal exemptions below. You can find the full text here: http://www.vsb.org/site/publications/the-bankruptcy-process

    "The Bankruptcy Code allows the individual debtor to retain certain property as “exempt.” Exempt property is free of the claims of creditors and cannot be taken by the trustee to be liquidated. Virginia law determines the types and amount of exempt property. The debtor is entitled to a “homestead exemption” which allows each debtor to claim a one-time exemption of up to $5,000 (plus $500 for each dependent) in any kind of property. The debtor is also entitled to a specific exemption, sometimes referred to as the “poor debtor’s exemption,” in different types of property (for example, clothes up to $1,000; household furnishings up to $5,000; tools of a person’s trade or business up to $10,000). Other types of property (such as proceeds from a personal injury settlement or award and certain contributions to qualified pension plans or IRAs) may also be exempt under Virginia law. You must claim the property as exempt in your bankruptcy schedules and to claim the homestead exemption, you or your lawyer must also properly prepare and file a “homestead deed” within a certain time limit. Creditors or the bankruptcy trustee can challenge the type or amount of the exemptions claimed by the debtor. Once you have claimed an exemption, you cannot claim it again in another case."
    thanks for pointing in the right direction


  4. #4
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    Thanks for the thanks, kolabok. Good luck.


  5. #5
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    wiggle room

    thought it made sense to piggyback off the same topic but with a question concerning automobiles in a bankruptcy proceeding?

    assuming the vehicle is going into the trustee's possession on behalf of the lender, what if any amount can be negotiated to retain possession of the vehicle, outside of the allowable amount that one can keep of which is 5000$ in this case the state of VA?



    in other words, can one haggle outside of this 5k limit to purchase the vehicle or must it derive from the 5k allowable, or even keep the vehicle without paying anymore for it due to its value?

    I know the value of the vehicle in my mind would be the driver for reposing. as an example, one could assume if it were a BMV of resale value, it would seem prudent for the lender to take back the vehicle to recover some of the loss, however, if it were an old KIA, seems it would not be worth the resources to chase down a nickel while wasting a dollar, IMO.

    attempting to keep the vehicle without digging into what the law allows one to keep in a bankruptcy proceeding. I am, unemployed, broke and have a family.

    thanks


  6. #6
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    I was asked to look at this thread. Cannot do it at the moment. Will review and post what I can either in the morning or tomorrow evening.

    Des.


  7. #7
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    Quote Originally Posted by kolabok View Post
    In a chapter 7 bankruptcy, how much money can be retained after filing?
    Post petition earnings are not property of the Chapter 7 estate therefore what you earn after the case is filed is not an issue. What is an issue, is what you had on the day you file and whether or not you can exempt that property.

    It appears that Virginia has pretty good exemptions for personal property and other household goods. I did not see one for “funds in a bank” or “cash on hand” but my guess is that those items fall within the definition of “personal property”. I also see that there is an exemption for that portion of a tax refund that is attributable to the “child or earned income tax credit”.

    Quote Originally Posted by kolabok View Post
    assuming the vehicle is going into the trustee's possession on behalf of the lender, what if any amount can be negotiated to retain possession of the vehicle, outside of the allowable amount that one can keep of which is 5000$ in this case the state of VA?
    According to Va. Code Ann. 34-26(8), the VA vehicle exemption is $6,000.00 ($12,000.00 if married). This basically means that, after the lienholder is paid, you get to keep any equity up to $6,000.00. Anything over that belongs to the Trustee.

    A bankruptcy trustee does not care if your intention is to reaffirm or surrender to the lender the vehicle. The Trustee will have no interest in the vehicle unless he/she can sell it for more than what you owe plus the allowed exemption.

    What I do not know is. . .

    1. The value of the vehicle; and
    2. The amount owed to the lender/lienholder

    Please let me know if you have any additional questions.

    Best regards.

    Des.


  8. #8
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    Under the Virginia exemption system, homeowners may exempt up to $5,000 of their home or other property covered by the homestead exemption. Debtors may add $500 to this amount for each of their dependents. Debtors aged 65 and older, and veterans disabled by 40% or more, can exempt up to $10,000.
    If you are married, it is doubled. Other property covered by the homestead exemption would include cash on hand.


  9. #9
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    Quote Originally Posted by despritfreya View Post
    Post petition earnings are not property of the Chapter 7 estate therefore what you earn after the case is filed is not an issue. What is an issue, is what you had on the day you file and whether or not you can exempt that property.

    It appears that Virginia has pretty good exemptions for personal property and other household goods. I did not see one for “funds in a bank” or “cash on hand” but my guess is that those items fall within the definition of “personal property”. I also see that there is an exemption for that portion of a tax refund that is attributable to the “child or earned income tax credit”.



    According to Va. Code Ann. 34-26(8), the VA vehicle exemption is $6,000.00 ($12,000.00 if married). This basically means that, after the lienholder is paid, you get to keep any equity up to $6,000.00. Anything over that belongs to the Trustee.

    A bankruptcy trustee does not care if your intention is to reaffirm or surrender to the lender the vehicle. The Trustee will have no interest in the vehicle unless he/she can sell it for more than what you owe plus the allowed exemption.

    What I do not know is. . .

    1. The value of the vehicle; and
    2. The amount owed to the lender/lienholder

    Please let me know if you have any additional questions.

    Best regards.

    Des.
    Thank you for the information!

    I had an informative conversation with CARMAX regarding negotiating the price of the car. They will not do anything until such time as a bankruptcy lawyer is involved, car is way past due in payments, or the pay off the amount of the loan.

    1. car is valued at (blue book value) 3500$
    2.10,200$ to CarMax

    I find more than not, one (average citizen) must ALWAYS involve an attorney in any and all matters. I suppose everyone has to get paid, especially for the cost of the education to become an agent of law. I am not against the rule of law, but simply trying to offer a fair settlement for something that is a 1/3 of the value on a defaulted loan (this is the 6000$ VA law allows in the exemption i assume) vs. crying poor man to be absolved of any further monetary payments.
    It is rather straightforward, they do not want the car back, but will not negotiate until a bankruptcy lawyer becomes involved. Again a reliance on some one else's merits vs. that of the an average joe or Jane. All I am saying is, I can haggle just as well as a lawyer for fair market value, they do not, at least with me involved.

    At any rate seems having to push extra money away to close an otherwise straightforward deal, where quite possibly CarMax gets nothing because the poor debtor's exemption allowed by VA.

    again unemployed, no financial means, (reliance on state help, snap, Medicaid and fuel allowance), family of 4 and a very used car.

    Seems to me, CarMax would loose any reclamation of value, chasing a nickel with a dollar. Why bother, take some money and close the agreement.

    As Vin Diesel said in the chronicles of Riddick, to tombs, "you should have taken the money". Maybe we should go for a field ride and then let the repo man come and get it. Just joking, want to do the right thing, but their not giving in to anything but more money in the end


  10. #10
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    Quote Originally Posted by doucar View Post
    Under the Virginia exemption system, homeowners may exempt up to $5,000 of their home or other property covered by the homestead exemption. Debtors may add $500 to this amount for each of their dependents. Debtors aged 65 and older, and veterans disabled by 40% or more, can exempt up to $10,000.
    If you are married, it is doubled. Other property covered by the homestead exemption would include cash on hand.
    thanks, informative.

    I assume personnel property also includes the vehicle?


  11. #11
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    Quote Originally Posted by despritfreya View Post
    I was asked to look at this thread. Cannot do it at the moment. Will review and post what I can either in the morning or tomorrow evening.

    Des.
    Thanks, Des. You're a dear.


  12. #12
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    Quote Originally Posted by kolabok View Post
    . . . CARMAX . . . will not do anything until such time as a bankruptcy lawyer is involved. . .

    1. car is valued at (blue book value) 3500$
    2.10,200$ to CarMax

    . . . having to push extra money away to close an otherwise straightforward deal, where quite possibly CarMax gets nothing because the poor debtor's exemption allowed by VA. . .
    I believe you have two misconceptions. . .

    1. You do not need to hire an attorney and CARMAX cannot force you to hire one. While having an attny is advisable, once you file bk, you, on your own, can file a "Motion to Redeem". Google it.

    2. Your exemption allowance has absolutely no impact on CARMAX. It’s lien is superior to your exemption rights. You have to pay CARMAX for the lien release and that is either accomplished by servicing the contract (reaffirming) or paying the lender the value of its collateral in a lump sum amount (redeeming).

    Des.


  13. #13
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    Quote Originally Posted by despritfreya View Post
    I believe you have two misconceptions. . .

    1. You do not need to hire an attorney and CARMAX cannot force you to hire one. While having an attny is advisable, once you file bk, you, on your own, can file a "Motion to Redeem". Google it.

    2. Your exemption allowance has absolutely no impact on CARMAX. It’s lien is superior to your exemption rights. You have to pay CARMAX for the lien release and that is either accomplished by servicing the contract (reaffirming) or paying the lender the value of its collateral in a lump sum amount (redeeming).

    Des.
    Can I Keep My Car If I File for Chapter 7 Bankruptcy?
    Can I Keep My Automobile If I File for Chapter 7 Bankruptcy? This is also a common question from most of my clients. A debtor can keep the car if the equity in your car is $0 or exempt based on the automobile exemption amount allowed in your state.

    This came up in a goggle search.

    And searching code of VA, turned this up

    § 34-26. Poor debtor's exemption; exempt articles enumerated.
    In addition to the exemptions provided in Chapter 2 (§ 34-4 et seq.), every householder shall be entitled to hold exempt from creditor process the following enumerated items:
    1. The family Bible.
    1a. Wedding and engagement rings.
    2. Family portraits and family heirlooms not to exceed $5,000 in value.
    3. (i) A lot in a burial ground, and (ii) any preneed funeral contract not to exceed $5,000.
    4. All wearing apparel of the householder not to exceed $1,000 in value.
    4a. All household furnishings including, but not limited to, beds, dressers, floor coverings, stoves, refrigerators, washing machines, dryers, sewing machines, pots and pans for cooking, plates, and eating utensils, not to exceed $5,000 in value.
    4b. Firearms, not to exceed a total of $3,000 in value.
    5. All animals owned as pets, such as cats, dogs, birds, squirrels, rabbits and other pets not kept or raised for sale or profit.
    6. Medically prescribed health aids.

    7. Tools, books, instruments, implements, equipment, and machines, including motor vehicles, vessels, and aircraft, which are necessary for use in the course of the householder's occupation or trade not exceeding $10,000 in value, except that a perfected security interest on such personal property shall have priority over the claim of exemption under this section. A motor vehicle, vessel or aircraft used to commute to and from a place of occupation or trade and not otherwise necessary for use in the course of such occupation or trade shall not be exempt under this subdivision. "Occupation," as used in this subdivision, includes enrollment in any public or private elementary, secondary, or career and technical education school or institution of higher education.
    8. Motor vehicles, not held as exempt under subdivision 7, owned by the householder, not to exceed a total of $6,000 in value, except that a perfected security interest on a motor vehicle shall have priority over the claim of exemption under this subdivision.


    9. Those portions of a tax refund or governmental payment attributable to the Child Tax Credit or Additional Child Tax Credit pursuant to § 24 of the Internal Revenue Code of 1986, as amended, or the Earned Income Credit pursuant to § 32 of the Internal Revenue Code of 1986, as amended.
    10. Unpaid spousal or child support.
    The value of an item claimed as exempt under this section shall be the fair market value of the item less any prior security interest.
    The monetary limits, where provided, are applicable to the total value of property claimed as exempt under that subdivision.
    The purchase of an item claimed as exempt under this section with nonexempt property in contemplation of bankruptcy or creditor process shall not be deemed to be in fraud of creditors.
    No officer or other person shall levy or distrain upon, or attach, such articles, or otherwise seek to subject such articles to any lien or process. It shall not be required that a householder designate any property exempt under this section in a deed in order to secure such exemption.

    A little confusing, but I'll give it a go.
    # 7 basically is saying there is no haggling with the lender if there is an ongoing loan and cant be exempt unless used in a trade, occupation etc.

    and #8 if not exempt from 7 can be retained up to 6K?

    thank you


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