Bankruptcy Exemptions in Texas Filings
Provided by HG.org
Texas bankruptcy filings are similar to those found in other regions of the country, but there are certain exemptions available based on specific factors. Most of these exemptions exist with what is possible to retain after the procedure has completed, and this is most beneficial to landowners and those that want to keep their vehicles.
Most areas of the country have similar or the same bankruptcy processes. However, Texas has many differences in most procedures. These often include taxes, exemptions for various items and special provisions. These are all key to brining in small and large business owners to the state. However, when bankruptcy is an eventual outcome of business or personal matters, Texas may supply some very important exemptions. Homestead exemptions give land and homeowners the option to take these stipulations to protect virtually an unlimited value amount in the home until ten acres of land exceeds this rule. However, in certain places, this could include as much as 100 acres.
The Bankruptcy Process
The code of bankruptcy is similar throughout the country as it is federal law. However, the exemptions and items permitted to retain may differ based on the state and type of filing process. Chapter 7 is the usual procedure that a person may apply for when he or she cannot manage debts. This will supply the applicant with a stoppage of debt collectors seeking monies, phone calls from creditors, any additional lawsuits and harassment through postage mail, email or phone. This method is for medical costs, unsecured debts such as loans and credit cards. The filing individual may see a complete loss of debts or the bulk of them removed from his or her life.
Texas Bankruptcy Exemptions
Exemptions exist to provide the applicant with the ability to retain property and assets after the process has completed. These items kept may include real estate property, land, vehicles and similar assets. Texas affords the individual a greater potential for assets and property retained through the bankruptcy procedure. The capability to keep vehicles, a home and land is critical for some that are seeking a way out of crippling loans, liens and other debt. An applicant may keep his or her home no mater how much value it has. However, there are requirements that demand satisfaction before the bankruptcy Chapter 7 is complete.
For exemptions qualification, the individual must live in and remain in the state for no less than 40 months. This is jus over three years. After this time, these residents may claim homestead protection in excess of $140,000. While there are confusing statements in these laws, it is possible in certain circumstances to move from one home to another in Texas and still claim homestead protections. Bankruptcy laws also require the resident to live in the state for at least two years before applying these exemptions in bankruptcy. This halts any moving and changes of state. Picking and choosing better bankruptcy processes and filing is more difficult unless the person lives in a specific area for multiple years.
Additional Texas Exemptions
For each Texas resident that lives in the state with a Texas driverís license, he or she may protect equity in a vehicle. One car may receive safeguards against seizure and sale in this state through a Chapter 7 bankruptcy process. Personal property for a single individual may receive $50,000 in protections or $100,000 for a family. Many are able to file these procedures and still retain all property owned. It is important to keep informed of the changes, and a professionalís hire is often necessary. These processes change constantly, and review of the case is crucial so no violations occur.
In addition to the property by acreage, vehicle and other assets, the individual filing a Chapter 7 in Texas may retain his or her wages from a job. Other than what must go to child or spousal support based on court order, income earned is safe. Other accounts such as benefits, pension and retirement are also secure from seizure. Individual retirement accounts, other benefits for service professionals and certain additional financial records may receive protections in the bankruptcy process in Texas. These may change based on administration, law and year.
Legal Help with Bankruptcy Exemptions in Texas
To ensure a violation of laws does not occur, the applicants filing bankruptcy in Texas should retain the services of a lawyer. He or she will protect the client from making mistakes or infringing upon regulations in the state and local areas.
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.