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 and the equity is covered by your exemptions, you may elect to keep making payments on the loan and 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 proceeds. 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.
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
Homestead | 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 |
27-101 27-105 In re McQueen, 21 B.R. 736 (D. Ver. 1982) |
Insurance | 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 | 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) |
Miscellaneous | Alimony, child support needed for support Property of business partnership | 12-2740(19) (D) 11-1282 |
Pensions | Municipal employees Self-directed accounts (IRAs, Keoghs) to $10,000 State employees Teachers Other pensions | 24-5066 12-2740(16) 3-476 16-1946 12-2740(19) (J) |
Personal Property | 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 |
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) |
Public Benefits | 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 | 33-124 12-2740(19) (E) 12-2740(19) (A) 21-1367 12-2740(19) (B) 21-681 |
Tools of Trade | Books & tools of trade to $5000 | 12-2740(2) |
Wages | 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 |
12-3170 12-3170 |
Wild Card | $7000 less any amount of appliances, et al, growing crops, jewelry, motor vehicle & tools of trade, of any property $400 of any property | 12-2740(7) 12-2740(7) |
For more information on filing bankruptcy in Vermont explore Vermont Bankruptcy Law.
