Is your home at risk of foreclosure ? Many homeowners facing foreclosure fail to understand their rights and the tools available to them to prevent foreclosure. One of those tools is bankruptcy. Bankruptcy is designed to protect the primary residence of the debtor by using what's called the homestead exemption. The Texas homestead exemption is available for Texans who have lived in the state for at least two years and have lived in their home for more than 1,215 days before filing bankruptcy.
Under the Texas bankruptcy law, the homestead (your primary residence) can have unlimited value. In other words if your home is worth $1 million you may still be able to protect it from seizure/liquidation under the homestead exemption. But there are some exceptions.
You may not have the right to use the Texas homestead bankruptcy exemption if:
- You added value to your home because you wanted to avoid paying your creditors.
- You were convicted of abusing bankruptcy laws.
- Your debts were accrued because you violated federal/state laws or committed a crime that caused the death or injury of another person.
To find out more about the homestead exemption, speak with a Dallas-Fort Worth bankruptcy attorney .