Texas has one of the most generous homestead bankruptcy exemptions in the country. For Texans filing bankruptcy, the Texas bankruptcy law allows debtors to claim an unlimited value under Texas' homestead bankruptcy exemption. For example, if your primary residence is worth $750,000 you would be allowed to claim the entire amount under your homestead bankruptcy exemption.
But debtors who abuse the bankruptcy system could lose their right to their homestead bankruptcy exemption. For example if you lied or attempted to conceal property during bankruptcy, the court could revoke your homestead bankruptcy exemption. Or, attempting to defraud the court by wrongly applying a homestead bankruptcy exemption to a property that was not your primary residence could has forfeit your homestead bankruptcy exemption rights.
Other reasons include:
- Spending money on your home to avoid paying creditors.
- Accruing debts by committing a crime.
- Being convicted of bankruptcy fraud.
To find out more about how bankruptcy can help you protect your assets, contact a Dallas-Fort Worth bankruptcy attorney today.