It’s a common misconception that bankruptcy means all your assets get wiped out—sold and paid to creditors. However, that’s not the case; bankruptcy wouldn’t be much help to consumers if that were true! In Texas, there are certain assets you’re allowed to exempt from bankruptcy; you’re also allowed to choose between federal exemptions and Texas exemptions. If you’re married and filing jointly, both you and your spouse each get a full list of exemptions.
Exemptions are a powerful tool in rebuilding your life post-bankruptcy. It’s also good for your peace of mind: bankruptcy is often a process of letting go, so having things that you get to keep, assets that are protected from being liquidated, is meaningful. If you want to make sure you’re taking full advantage of your exemption list under Texas law, work with a bankruptcy attorney. You’ll save yourself an enormous amount of money and time, and our Fort Worth bankruptcy attorney can help you exempt everything that’s vital for you and your family.
Get a confidential consultation to learn what part of your life you get to protect in bankruptcy. Call (817) 576-1889 today.
The homestead exemption in Texas is unlimited in value; no matter the value of your property, you get to protect it from creditors. However, the property itself is only exempt for up to an acre if you live within city limits. If you live outside of a city, town, or ‘village,’ then your property is exempt up to 100 acres (200 if you have a family). Any land outside of an acre (or 100 acres) may be required to be sold to a creditor; however, most of your property will be safe.
Personal Property Exemptions
Your personal property exemptions cannot exceed $30,000 (or $60,000 for families). However, within that $60,000 limit, you’re allowed to keep many of your things: athletic equipment, bicycles, furniture (including family heirlooms), food, clothing, a two-, three-, or four-wheeled vehicle per member of the family, two firearms, and livestock. Part of claiming your exemption will mean getting your assets appraised.
A note on personal property exemptions: for items secured by a loan (e.g., a vehicle or a house), you may be able to make it exempt if you’re a.) current on your payments, b.) willing to continue paying the loan, and c.) your equity is covered by the exemption.
Other Property Exemptions
There is a myriad of exemptions available to Texas residents, including some public benefits (crime victims award, medical assistance, workers compensation, and others), tools of the trade (boats, motor vehicles, books, and other equipment), and unpaid wages.
To fully take advantage of the exemptions available to you, speak with our Fort Worth bankruptcy attorney today. Huebner Law Firm P.C. has more than 18 years of experience helping consumers navigate bankruptcy, giving them the tools to build financial freedom. Speak with our firm today to learn your financial options!