Filing bankruptcy got easier in Virginia on July 1. The exemption for cars increased to six thousand dollars. Sen. Chap Petersen helped change that law.
That’s why I’m endorsing State Senator Chap Petersen, Democrat of Fairfax.
Bankruptcy is set up by the Federal government. But each state sets its own rules on what you are allowed to keep. Your “exemptions” are what you can keep.
Before, Virginia law allowed people to keep a paid for car worth only two thousand dollars. (Virginia also has a cash exemption–called a “homestead”–of five thousand dollars. People filing bankruptcy used that “homestead” to keep their car.)
An exemption for a six thousand dollar car is more realistic.
Senator Chap Petersen is one of three legislators who helped the most. He’s the only one who has an opponent in the November 2011 elections. (Virginia holds state elections in the odd years.) The others who helped were Del. Mark Cole, Republican of Fredericksburg. And Del. Dave Albo, Republican of Springfield.
Sen. Chap Petersen represents Vienna, Fairfax and part of Centreville north of I-66.
Please look at this map. If you live there, please vote for Sen. Chap Petersen, November 8, 2011.
Do bankruptcy exemptions matter to everybody? Even people who never have to file bankruptcy? I think so. Let me explain.
The purpose of bankruptcy is to allow people knocked down by life to get back up.
Imagine someone who has lost their job–because of the recession or whatever reason. And then lost their house. All that’s left is money to put down a deposit on an apartment–and a paid-for Chevy Malibu. Should the bankruptcy court take and sell the Chevy? How is that person supposed to get a new job and get to work?
If the person can’t get to a new job, then what?
The purpose of bankruptcy exemptions is to leave people with enough to start over.
That’s why the Virginia General Assembly increased the car exemption in 2011. And that’s why all of us owe thanks to Del Dave Albo, Del Mark Cole, and Sen. Chap Petersen.