State Specific Bankruptcy Issues, Property Exemptions, Unemployment

Consumers still covered with high unemployment stats can protect property

The latest Gross Domestic Product report indicates that the recession will end this spring, and at the latest by the end of the year.  Some analysts are evening predicting some growth in the last quarter of this year.  The not-so-silver lining though is that job growth will still continue to lag behind.  Many corporate executives are still receiving substantial compensation are likely to weather the end of the recession.  The obvious concern then is how do you survive till the end of this financial storm without executive bonuses.  Many people are tempted to use a slash and burn method of selling everything they own to cover what they can.  Sacrifice is admirable, but it may not be necessary.  Before you jeopardize everything, talk to a qualified bankruptcy attorney about property exemptions and how they apply to your situation.  A property exemption allows you to remove certain property from the bankruptcy process and out of the reach of creditors.  It is important when talking to a bankruptcy attorney that you make a complete list of everything that you own, and everything that you might own.  You’re probably wondering about the phrase “might own.”  Many people think solely about what they use and consider their property.  If you’re married, you might consider your wife’s car hers and your car yours.  However, in Texas, if both cars were purchased during your marriage, they are both probably considered community property and you both own them, (even if your spouse strong objects to the classification).  The result will be similar in other community property states.  If you’re not sure about your ownership status, err on the side of caution and review all items with your bankruptcy attorney.  He can guide you through what is considered joint and separate property.  From there, you can begin reviewing your options on how to protect property through bankruptcy.  Items that can be protected through property exemptions include automobiles, homesteads, and household goods up to certain limits for your situation.  What is finally eligible for exemption will turn on the bankruptcy rules of the state of your permanent residence.  Even if you live in Texas now, you may be subject to the exemption rules of another jurisdiction if you only recently relocated.   Even though the rules regarding exemptions seem a little confusing, keep in mind that a qualified bankruptcy attorney can guide you through them.  Just because major corporations are sacrificing jobs to become more profitable doesn’t mean that you have to sacrifice everything you’ve worked for to survive.  Options are available through a qualified bankruptcy attorney in your area.

By | 2017-12-13T02:03:16+00:00 August 19th, 2009|Bankruptcy, Loans / Mortgages, Pay Day Loans, Unemployment - Job Loss|Comments Off on State Specific Bankruptcy Issues, Property Exemptions, Unemployment