Bankruptcy Exemptions in West Virginia

Bankruptcy can be a way out of financial trouble for those who have fallen on hard times. However, there are several options from which to choose, as well as a number of requirements that a debtor must meet before they are eligible for any type of bankruptcy relief.

Chapter 7 is one of the simpler processes that works for many people, not only because it results in many consumer obligations being erased, but because it can provide exemptions, through federal or state statutes, to protect some or all of the debtor’s personal property. In West Virginia, residents are required to claim only state exemptions, which in many cases are more generous than federal exemptions.

How to Keep Your Car

State and federal exemptions differ in this area:

• Federal exemption – $3,225
• West Virginia state exemption – $2,400

In addition, in order to protect a vehicle that is security for a loan, the debtor must continue to make regular payments or face repossession.

How to Keep Your Home

• Federal homestead exemption - $20,200
• West Virginia state exemption – $25,000, for real or personal property used as a residence
  • Any unused portion of the homestead exemption may be applied to any other personal property

A debtor’s property may also be subject to foreclosure if it is security for a mortgage. Unless the property owner continues to make regular payments, they may not be able to protect their home.

West Virginia allows exemptions for other forms of personal property:

• Clothing, household goods, furnishings, appliances, musical instruments, books, animals, and crops – up to $400 per item and $8,000 total
• Jewelry – up to $1,000
• Health aids
• Lost earnings payments needed for support
• Personal injury recoveries – up to $15,000
• Prepaid higher education funds and savings plan payments
• Wrongful death recoveries for a person the debtor depended on for support
• Any property – up to $800 less amount of homestead claimed
• Burial plot – up to $25,000 in lieu of homestead
• Tools of the trade, including books, tools, and implements – up to $1,500

Filing Schedule C of a Bankruptcy Petition

A Schedule C list of property exemption claims is required in addition to a bankruptcy petition. That list must include information about:

• The property claimed
• The West Virginia statutes substantiating those claims
• The property exemption value for each claim
• Each claim’s current assessed value (not the market value)

Always Talk to a Lawyer

No one wants to face financial difficulty, much less consider bankruptcy. However, it can be the answer to a financial hole that one person or family may be unable to dig themselves out of. A bankruptcy lawyer can help you understand if this is the right option for you, if you are eligible, and how you can protect as much of your personal property as possible through the process.