Vermont filers use state exemptions rather than federal bankruptcy exemptions (though federal nonbankruptcy exemptions may still apply). Below is a table summarizing the main Vermont exemption amounts. Always confirm with local statutes or a bankruptcy attorney for any updates or changes.
Except for homestead, married couples filing jointly can often double an exemption if both own the property. If property belongs to only one spouse, the exemption is not doubled.
| Exemption Type | Amount | Statute (Check Local Code) | Notes |
|---|---|---|---|
| Homestead | Up to $125,000 equity in a home, mobile home, or condo. Not doubled for joint filers. | Check local code references | Must be your primary residence. No doubling for married couples. |
| Wages | 75% of weekly disposable wages or 30 × federal hourly minimum wage, whichever is higher. | Check local code references | Judge may allow more for low-income individuals. |
| Motor Vehicle | Up to $2,500 total equity across one or more vehicles. | Check local code references | If you own multiple vehicles, total equity can’t exceed $2,500. |
| Personal Property | Combined value of $2,500 for clothing, appliances, furniture, animals, books, crops, musical instruments. Plus $700 of bank deposits; $5,000 in livestock/fuel/crops; $500 of jewelry; wedding ring; various household appliances (heating unit, fridge, freezer, water heater, sewing machine). | Check local code references | Each category has sub-limits. E.g., $2,500 for basic personal property, $500 for jewelry, etc. |
| Tools of the Trade | Up to $5,000 | Check local code references | Items/books used in your profession. |
| Wildcard | Up to $400 for any property; plus up to $7,000 of unused exemptions from motor vehicle, tools, or some personal property categories. | Check local code references | Combine to protect assets not otherwise fully exempt. |
| Insurance Benefits | Annuity benefits up to $350/month; disability benefits if needed for support; health benefits up to $200/month; life insurance proceeds for dependent; policy specifying creditor prohibition. | Check local code references | Carefully review each policy’s conditions and coverage to confirm eligibility. |
| Pensions & Retirement | Tax-exempt retirement (401(k), IRA, defined benefit plans), state/municipal/teacher plans generally exempt. | Check local code references | Verify each plan type is recognized under Vermont law or federal rules. |
| Public Benefits | Social Security, unemployment, workers’ comp, veterans’ benefits, crime victims’ comp | Check local code references | Typically 100% exempt. Confirm each program’s sub-limits. |
Chapter 7 vs. Chapter 13: In Chapter 7, a trustee may sell nonexempt assets to pay creditors. In Chapter 13, you keep property but pay unsecured creditors the nonexempt value over 3-5 years.
You must live in Vermont for 730 days (2 years) before filing to use these exemptions. Otherwise, you might use your prior state’s laws. A separate federal “cap” can limit homestead if you bought it less than 40 months ago—consult a local attorney for details.
Important: Exemptions change periodically. Always check if statutes and amounts are current. Verify with a bankruptcy attorney to confirm that these exemptions still apply.