- In Vermont, you may elect to use the Federal Bankruptcy Exemptions in place of the Vermont state exemptions if you choose to do so.
You may also opt to use the Federal Supplemental bankruptcy exemptions in conjunction with the state bankruptcy exemptions when filing. Please see the Federal supplemental guidelines for more information.
Homestead Exemption
- Real property, mobile home to $75,000; may also claim rents & 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
Insurance Exemptions
- Annuity contract benefits to $350 per month
- Fraternal benefit society benefits
- Group life insurance benefits
- Disability benefits that supplement life insurance or annuity contract
- Health benefits to $200 per month
- Life insurance proceeds if beneficiary is not the insured
Pensions for municipal and state employees, teachers and other pensions; self-directed accounts to $10,000. Aid for the blind, aged or disabled and AFDC. Social Security and Veteran’s benefits. Unemployment compensation. Worker’s compensation.
Personal Property
- Furnishings, household goods, clothing, books, animals and crops to $2,500 total
- Cow, 2 goats, 10 sheep, 10 chickens, bees & honey, feed to last one winter, ten cords of wood, 5 tons of coal or 500 gallons of oil, 500 gallons of bottled gas, growing crops up to $5,000, plow & ox yoke, yoke of oxen or steers & 2 steers
- Jewelry to $500
- Wedding ring to unlimited value
- Automobile or truck to $2,500
- Bank deposits up to $700
- Stove, heating unit, fridge & freezer, sewing machine and needed major appliances
- Books and tools of trade up to $5,000
- Any personal property up to $400
The initial filing of bankruptcy in Vermont will take place in Rutland, Vermont, but some meetings, such as the 341, may take place in other locations, so call the district office to confirm the locations of any meetings. The initial filing of the bankruptcy petition will take about two months to process, after which you will be required to attend an initial "341 Meeting," also called a "First Meeting of Creditors," during which the bankruptcy judge will meet with you and your attorney (if you have one) and the representative of each creditor to discuss your situation. You will be questioned as to your financial status and current employment and your potential ability to repay your current debts. Your creditors will have the opportunity to ask any questions they may have. If you do not attend the 341 Meeting, the judge can decide to dismiss your Petition at that time.
If you are filing for Chapter 7 bankruptcy, the creditors will have sixty days to respond to or contest the discharge of your debts. After the sixty days has expired, your bankruptcy will be complete. Usually, the entire process for a Chapter 7 bankruptcy takes about four to five months from filing the Petition to Discharge.
For a Chapter 13 bankruptcy, the discharge is issued only after all debts are repaid. Since this type of bankruptcy is a re-organization of your debts so that you can repay them over time, the discharge may not be issued for three to five years after the filing of the initial Petition.
With a Chapter 13 Plan, you will work closely with the Trustee to repay your debts at a reduced rate over time. All of your debts will be turned over to him to administer, including all credit card accounts, which will be closed so that you cannot continue to increase your debt obligations. You will make one monthly payment directly to the Bankruptcy Court, which the Trustee will then divide up between your various creditors.
In both cases, a Trustee appointed by the Court will determine what assets may be retained by the filing individual. Usually, this will be someone with extensive bankruptcy experience such as an attorney or accountant familiar with the custodial accounting. The Trustee will be the custodian of your assets and in charge of selling any assets above and beyond what is exempt in order to pay off any debts.
One of the most important aspects of filing for either Chapter 7 or Chapter 13 bankruptcy is the "Automatic Stay" issued by the Bankruptcy Court. This is an Order issued to all creditors and collections agencies stopping them from any attempts to collect any money you owe them. They cannot call you, write to, repossess property, or in any way attempt to collect on the debt until the Stay is lifted or the bankruptcy is discharged. In fact, if any creditor continues to try to collect after a Stay has been issued, they can be fined and sued for punitive damages. If you are harassed by creditors after filing for bankruptcy, contact your attorney or the bankruptcy court.
