If you’re overwhelmed with debt and are considering bankruptcy, you need to know what will happen with your personal belongings. Will they be sold to pay off creditors? What will you be able to keep? These are important questions, particularly when related to keepsakes.
If you have valuable keepsakes and file for bankruptcy, they may be protected. Let’s dig deeper into this subject and see how Texas bankruptcy law affects keepsakes.
Chapter 7 vs. Chapter 13
First of all, you should know that valuable keepsakes and all of your property will be protected if you file under Chapter 13 of the U.S. Bankruptcy Code, which is a reorganization and repayment of debt. Chapter 7 bankruptcy involves the liquidation of assets to pay creditors and the discharge of debt. If you file Chapter 7, you need to understand how your keepsakes—and other property—will be affected.
Personal Property & Bankruptcy in Texas
Some people mistakenly believe that they must surrender all of their assets when they file Chapter 7. This is simply not true. When you file for bankruptcy, state and federal exemptions may apply. This essentially means that certain property will be exempt from liquidation.
Your home, personal property, life insurance, pensions, public benefits, tools of your trade, and wages are protected—to certain limits. Valuable keepsakes may fall under the category of personal property, which is limited to a total value of $50,000 for a single adult and $100,000 for a family.
Texas Property Code § 42.002 does not specifically mention “keepsakes” as a type of personal property, but such items may fall under the categories of family heirlooms or jewelry, which are listed.
Protect Your Valuable Keepsakes
Some of the things we keep in memory of others are worth significant amounts of money. Others have no financial worth, but their sentimental value is profound. In either scenario, you want to be certain that these items that mean so much to you are protected. That’s where an understanding of Texas bankruptcy exemptions and bankruptcy law as a whole is essential.
At Heubner Law Firm, we know how important your keepsakes are to you. During bankruptcy, we can help protect items such as:
- Medals and awards
Get Experienced Bankruptcy Guidance
Trying to navigate bankruptcy proceedings on your own can be tough. It can also jeopardize your most precious possessions. Instead of losing valuable keepsakes and other property, work with a Fort Worth bankruptcy lawyer who will put your interests first while applying extensive experience and knowledge to help you face a brighter, more stable financial future.
To find out how we can help you, call (817) 576-1889 for your free consultation. Protecting your keepsakes may be easier than you think!