There can be times when a person falls into financial hardship. Many times, this financial turmoil cannot be avoided. A medical emergency, a lost job, or any other unexpected event can be enough to drain a person’s life savings. Declaring bankruptcy can be a way for a person to make a fresh start with their finances. But what assets are exempt from the bankruptcy process?
Texas law allows a person to choose to declare federal bankruptcy exemptions or Texas bankruptcy exemptions. Because Texas bankruptcy exemptions are more generous than the federal exemptions, most people choose the state. In Texas there is a homestead exemption that allows homeowners to protect their home if it is under 10 acres in a city or 100 acres in the country. That means that those who file for Chapter 7 bankruptcy will be able to keep their home if they have lived in Texas for more than 40 months. A person in Texas is also allowed to protect one of their cars for each person who is licensed in their household and $50,000 of personal property for single filers and $100,000 of personal property for a family. This often means that those who file for Chapter 7 bankruptcy in Texas get to keep most of their property.
Declaring Chapter 7 bankruptcy in Texas doesn’t have to be the end of a person’s financial future. Bankruptcy is a way for a person or family to make a fresh start. It is a way for a person to end their financial stress and move on. A legal professional who is skilled in bankruptcy can advise their client on how bankruptcy can help them. There are many reasons why a person may choose bankruptcy. These can include credit card debt, medical debt, wage garnishment and delinquent child support payments.
Bankruptcy can be a good way for a person to get out from under their debt. Texas has laws regarding what is exempt in a bankruptcy which can work to a person’s advantage.