Vermont Bankruptcy Laws
Bankruptcy laws in Vermont give you options
You don’t have to live with uncontrollable debt. Vermont bankruptcy laws can offer relief and security for those looking to get control of their finances, stay in their homes and get on with their lives.
When filing bankruptcy in Vermont, you have two main options, Chapter 7 and Chapter 13. Both are explained here.
If you are ready to take action against your debt, or want more information on which type of bankruptcy is right for you, speak with a Vermont bankruptcy lawyer. Fill out the free case evaluation form on this page and we’ll connect you right away.
Chapter 7 Bankruptcy & Chapter 13 Bankruptcy
Vermont’s Chapter 7 bankruptcy laws can provide a complete dismissal of any debt that is unsecured. Credit card bills, medical bills and personal loans are all considered unsecured.
Chapter 7 bankruptcy can also prevent your home and other possessions from being taken. Vermont’s Chapter 7 bankruptcy exemptions outline property that cannot be sold to pay your debts when you file. In the majority of cases, there is no liquidation sale.
In order to file Chapter 7 you need to meet certain income requirements. Speak with a local attorney to see if you qualify.
Homestead
- A residence worth up to $75,000.
Wages
- 75 percent of your wages.
Automobiles
- One motor vehicle worth up to $2,500.
Personal Property
- Up to $5,000 worth of professional books and trade tools.
- A wedding ring up to $500 worth of other jewelry.
- Up to $2,500 worth of furniture, goods, appliances, books, clothing, animals, crops and musical instruments.
- Up to $5,000 worth of growing crops.
- Up to $400 worth of other miscellaneous property.
- One cooking stove, heating appliances, refrigerator and freezer, water heater and sewing machine.
- $700 worth of bank deposits.
- Up to $7,000 of unused exemptions.
For those who have some regular income, but still owe lots on their homes or cars, then Chapter 13 may be a better option. In Vermont, Chapter 13 bankruptcy consolidates and orders debts. Sometimes the amount owed is reduced. These debts are locked and this will avoid adding more fees and fines.
Then, over the course of the court-approved repayment plan, you will make a regular monthly payment to at trustee who will handle your creditors. Then, when you’re finished, your debt will be retired and you’ll have a fresh financial start.
Vermont’s Chapter 13 bankruptcy laws also provide broader property protection provisions than Chapter 7.
Successfully navigate Vermont's bankruptcy laws
If you file bankruptcy, you will probably want to maximize this opportunity and take advantage of all the aid offered. A Vermont bankruptcy attorney can help you navigate the laws so you can fully realize the potential to eliminate your debt.
If you want to get the protection and debt relief of filing bankruptcy, contact a local Vermont bankruptcy lawyer. Simply complete the free case evaluation form, or call, toll free, 877-349-1309 and we’ll connect you with a bankruptcy lawyer in Vermont near you.
Note: Keep in mind bankruptcy laws can be complex. If you need legal advice or want more information about filing bankruptcy in Vermont, please speak with a local Vermont bankruptcy attorney.
Laws may have changed since our last update. For the latest information on state bankruptcy laws, speak to a local Vermont bankruptcy lawyer.
