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
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) 884-4020.
Consultations are available free of charge!