The Property that Can Be Protected When You File for Bankruptcy in Texas
When you qualify to file for protection under Chapter 7 of the bankruptcy laws, you can permanently discharge many debts in exchange for transferring some of your assets to the bankruptcy court, to be sold to satisfy your creditors. Some debts, such as child support, cannot be discharged, but there are also exemptions under federal and state law that allow you to keep some of your property. You must, however, choose either the state or federal exemptions—you cannot mix the two.
The Texas State Bankruptcy Law Exemptions
Texas has some of the most generous state bankruptcy exemptions in the country:
- The homestead exemption—This protects the value in your home. Under Texas law, there is an unlimited homestead exemption for any residence and adjoining property. If the residence and property are located in a city, town or village, the exemption covers up to 10 acres (20, if a couple files joint bankruptcy). If the residence and property are elsewhere, the exemption includes 100 acres of land (200 in a joint filing).
- The motor vehicle exemption—Under Texas law, you can claim an exemption for the full value of your motor vehicle. Furthermore, a separate exemption is allowed for every licensed household member. You may even claim an exemption for an unlicensed person who relies on a third party to operate a car or truck.
- The personal property exemptions—Texas allows you to claim exemptions up to $50,000 for a single filing and $100,000 for a joint filing. There are, however, limits on some types of personal property, including guns and jewelry
Contact an Experienced Rockwall, TX Bankruptcy Attorney
At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County and the surrounding counties.
