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Texas Bankruptcy Exemptions

Posted By Allmand Law Firm, PLLC || 7-Dec-2015

Considering filing for Chapter 7 or Chapter 13 bankruptcy in Texas? You may have several questions about how the process works and how it will affect your financial future. Many people assume that filing for bankruptcy will cost them everything they own, but there are in fact several protections available to help filers keep more of their property or pay less to unsecured creditors. These protections are contained within Texas exemption laws.

What is a Bankruptcy Exemption?

When an individual files for bankruptcy, everything they own as well as anything to which they are entitled becomes part of an estate. A trustee can sell all estate property to repay creditors in a Chapter 7 case; in a Chapter 13 case, a filer would be obligated to pay into their plan at least what their creditors would have received in a Chapter 7 filing. Thankfully, there are some state bankruptcy exemptions when it comes to taking property out of an estate (these are separate from the list of federal exemptions). If a married couple files for bankruptcy jointly, they can even double their exemption amount for jointly-owned property.

Texas offers the following exemptions:

  • Homestead exemption: Residences on 100 acres or less in the country or 10 acres or less in a city are exempt. If the house is sold, the proceeds are exempt for six months after the sale.
  • Personal property exemptions: Up to $100,000 worth of property ($50,000 if a single adult without a family) can be exempt. Items that can be exempt include sporting equipment, up to two firearms, family heirlooms, home furnishings, animals, clothing and food, burial plots, health aids, health savings accounts, and jewelry (limited to one-quarter of the exemption).
  • Motor vehicle exemption: A filer can exempt the entire value of one vehicle per licensed member of their household.
  • Retirement account/Pension exemption: The majority of tax-exempt retirement accounts and pensions will be exempt in bankruptcy.

Experience, Reputation, Dedication: Top Quality Legal Counsel in Dallas/Fort Worth & Northern Texas

Have further questions about which bankruptcy exemptions you may be able to claim? Consult with a Dallas bankruptcy attorney at Allmand Law Firm, PLLC today! Attorney Reed Allmand, who is certified in Consumer Bankruptcy by the Texas Board of Legal Specialization, takes pride in helping good people obtain the fresh financial start they need to enjoy a better future. As one of the largest bankruptcy filing firms in the state of Texas and with thousands of happy clients, you can feel confident entrusting your case to our care.

Learn more about how we can assist with your Chapter 7 or Chapter 13 bankruptcy by calling (214) 238-9608. Consultations are available free of charge!

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