Bankruptcy Exemptions in Texas
Protecting Your Property During Bankruptcy
For some, the biggest concern about filing for
Chapter 7 or
Chapter 13 bankruptcy is that they will lose everything in the process. However,
you should know that this is nothing more than a common misconception.
In Texas, debtors can use either state or federal bankruptcy exemptions
to protect their property—up to a certain dollar amount.
While all states have their own exemption laws, if you file for bankruptcy
in Texas, you have the option to use either state or federal property
exemptions. You cannot use both, which is why it would be wise to discuss
your options with a Dallas bankruptcy attorney at Allmand Law Firm, PLLC
before moving forward with your bankruptcy case.
To learn more about your options, call us for a
free bankruptcy consultation!
Will I Be Able to Keep My Home?
If you elect to use state bankruptcy exemptions, you may be able to protect
the entire value of your home.
Texas offers an unlimited homestead exemption, as long as your property does not exceed 10 acres in a city, town or
village or 100 acres elsewhere. If your rural homestead is occupied by
a family, this limit is doubled to 200 acres.
Other Property Exemptions Under Texas Law
Texas exemption laws allow you to exempt the entire value of one motor
vehicle per licensed household member, as well as up to $100,000 in personal
property per family or up to $50,000 if you are a single adult.
Personal property may include:
- Up to two firearms
- Home furnishings
- Jewelry (up to $25,000)
- Clothing and food
- Health savings accounts
- Sporting equipment
It is also important to note that both Texas and federal
bankruptcy exemptions can be doubled if you and your spouse file jointly. You would
each be entitled to your own exemptions, making it possible for you to
protect double the amount of property.
Should I Use State or Federal Exemptions?
If you have significant equity in your home or a large amount of personal
property, state exemptions may be the right choice for you. Texas law
offers generous exemptions for your home, motor vehicles and personal
property; however, one advantage of choosing federal exemptions is that
you can benefit from a “wildcard exemption."
A wildcard exemption can be applied to any property that you own. With
this, you could exempt up to $1,225 plus any amount left over from the
homestead exemption, up to $11,500. If you do not claim your full homestead
exemption under federal law, you would have up to $12,725 that could be
applied to any of your property.
Find out which type of bankruptcy exemptions would most benefit you by
speaking to our bankruptcy lawyers in Dallas.
Call our office today to get started!