Protecting Your Assets in a Bankruptcy

December 20, 2012 By: Carrie Weir

If you are considering filing for bankruptcy protection, but are afraid that you will lose all your property, think again. Under the bankruptcy laws, there are state and federal exemptions on property, so that you can discharge or reorganize debts without fear of losing everything. It can be difficult, however, to determine what property you can keep. That’s why you need an experience and knowledgeable attorney to help protect your rights.

At the office of bankruptcy attorney Carrie Weir, in Rockwall, Texas, I provide a free initial consultation to anyone considering filing for bankruptcy. For a private meeting, contact my office online or call me at 972-772-3083 to set up an appointment.

Your Property Rights in a Bankruptcy Filing

When you file for bankruptcy protection, you can choose whether you want to take the exemptions available under Texas law, or those available under federal law. The principal exemptions available under state law include:

• Up to $30,000 in personal property (for an individual), or $60,000 for a family — This includes home furnishings, cars, trucks, clothing and certain animals
• Your home and some acreage — Not more than 10 acres in an urban area or 100 acres in a rural area (200 acres for a family)
• Insurance benefits and pension/retirement plan assets

To qualify for the Texas state exemptions, you must have been a resident for at least two years (730 days) before filing your bankruptcy petition. If you fail to meet this requirement, the bankruptcy court will determine what state you lived in for the majority of the last two years, and allow you to use that state’s exemptions.

Federal bankruptcy rules also allow you to take certain exemptions:

• You can claim up to $21,625 in equity in your home
• There are specific dollar amounts for other types of property, such as:
  • $3,450 for a vehicle
  • $1,450 for jewelry
  • $11,525 for household goods
• Up to $11,525 if the cash or loan value of an insurance policy

Contact Heath, TX Bankruptcy Attorney Carrie Weir

I provide a free initial consultation to anyone with questions or concerns regarding a bankruptcy filing. Contact my office by e-mail or call me at 972-772-3083 for a private meeting. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.