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Vermont Bankruptcy Exemptions
The Vermont bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Vermont. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
In Vermont, you also have the choice
of using the federal
exemption statutes instead of your Vermont exemptions.
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments, the equity is covered by your exemptions, and you elect to keep making payments on the loan you generally can keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the assets. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Vermont you may also use certain federal exemptions in addition to your Vermont exemptions. |
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ASSET
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EXEMPTION DESCRIPTION
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LAW SECTION
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Homestead
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Real property or mobile home to $75,000; may also claim rents,
issues, profits & out-buildings
Spouse of deceased owner may claim homestead exemption
Property held as tenancy by the entirety may be exempt against debts
owed by only one spouse
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27-101
27-105
In re McQueen, 21 B.R. 736
(D. Ver. 1982)
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Insurance
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Annuity contract benefits to $350 per month
Disability benefits that supplement life insurance or annuity
contract
Disability or illness benefits needed for support
Fraternal benefit society benefits
Group life or health benefits
Health benefits to $200 per month
Life insurance proceeds if beneficiary is not the insured
Life insurance proceeds for person you depended on
Life insurance proceeds if clause prohibits proceeds from being used
to pay beneficiary’s creditors
Uninsured life insurance contract other than credit
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8-3709
8-3707
12-2740(19) (C)
8-4478
8-3708
8-4086
8-3706
12-2740(19) (H)
8-3705
12-2740(18)
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Miscellaneous
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Alimony, child support needed for support
Property of business partnership
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12-2740(19) (D)
11-1282
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Pensions
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Municipal employees
Self-directed accounts (IRAs, Keoghs) to $10,000
State employees
Teachers
Other pensions
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24-5066
12-2740(16)
3-476
16-1946
12-2740(19) (J)
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Personal Property
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Appliances, furnishings, goods, clothing, books, crops, animals,
musical instruments to $2500 total
Cow, 2 goats, 10 sheep, 10 chickens; 3 swarms of bees & their
honey; feed to last 1 winter; 10 cords of firewood, 5 tons of coal or
500 gallons of oil; 500 gallons of bottled gas; growing crops to $5000;
2 harnesses, 2 halters, 2 chains, plow & ox yoke; yoke of oxen or
steers & 2 horses
Jewelry to $500; wedding ring unlimited
Motor vehicles to $2500; bank deposits to $700
Personal injury recoveries for person you depended on
Stove, heating unit, refrigerator, freezer, water heater & sewing
machines; lost future earnings for you or person you depended on; health
aids
Wrongful death recoveries for person you depended on
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12-2740(5)
12-2740(6)
12-2740(9)-(14)
12-2740(3), (4)
12-2740(1), (15)
12-2740(19) (F)
12-2740(8), 12-2740(17),
12-2740(19) (1)
12-2740(19) (G)
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Public Benefits
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Aid to blind, disabled, aged, general assistance
Crime victims’ compensation needed for support
Social security needed for support
Unemployment compensation
Veterans’ benefits needed for support
Workers’ compensation
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33-124
12-2740(19) (E)
12-2740(19) (A)
21-1367
12-2740(19) (B)
21-681
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Tools of Trade
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Books & tools of trade to $5000
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12-2740(2)
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Wages
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Minimum 75% of earned but unpaid wages; bankruptcy judge may
authorize more for low-income debtors
Wages, if received welfare during 2 months before filing
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12-3170
12-3170
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Wild Card
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$7000 less any amount of appliances, et al, growing crops, jewelry,
motor vehicle & tools of trade, of any property
$400 of any property
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12-2740(7)
12-2740(7)
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For more information on filing bankruptcy in Vermont explore Vermont Bankruptcy Law.
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