Texas vs. Federal Exemptions in Bankruptcy
Deer Park Bankruptcy Attorney
Dennis M. Slate, Attorney at Law knows that one of the first concerns of those considering bankruptcy is asset protection. The attorneys at this firm have 29 years of hard-won experience in bankruptcy situations and understand the need to safeguard your property once you have filed for Chapter 7 or Chapter 13 bankruptcy. Both the federal government and the State of Texas provide exemptions so that when the bankruptcy process is complete, you are not left without your important assets.
When you meet with an experienced Deer Park bankruptcy lawyer from my firm, one aspect to filing your petition for bankruptcy will be to decide whether federal or state exemptions will provide you with the best protection. Our state is known to have very favorable exemption provisions but not all bankruptcy circumstances are alike and it is vital to have an attorney who understands the laws and what will be most advantageous for you.
Your Homestead and Bankruptcy
In Texas, there are no restrictions on the value of your home and you will able to retain it in bankruptcy. There are, however, limitations to the amount of acres you are allowed to keep. When you decide to sell your home, as sometimes occurs in Chapter 7, the money you get from the sale will be exempt for a period of 6 months after the sale is completed. Federal statutes allow you to exempt a specific amount of the equity value of your home.
For an individual, Texas sets the limit on personal property which is exempt from bankruptcy procedures to $30,000. For a family, the amount is $60,000. Each of these restrictions is founded on what the fair market value of your property is deemed to be. If you are a married couple who file jointly for bankruptcy, the full exemption value can be applied to both of you. This will double the total amount of exemptions that you can claim.
Federal bankruptcy exemptions are given for property such as motor vehicles, household items, jewelry, tools of the trade (items you use to make a living) and other personal property. In Texas, specific pensions, public benefits, insurance and earned but unpaid wages or commissions can be exempt. The above information is by no means exhaustive but is intended only to give you an idea as to the types of exemptions that may apply to your case.
Please contact a Deer Park bankruptcy attorney to understand state versus federal bankruptcy exemptions and which will be most advantageous for you.