Bankruptcy Laws in Texas
If you are considering filing bankruptcy and live in Texas, you are in luck. Well, not really, but the bankruptcy laws in Texas are on your side. As they say, everything is bigger in Texas. So are the allowable exemptions in Chapter 7 bankruptcy. Texas is one of the most forgiving states when it comes to bankruptcy and not being in fear of losing all your property.
The bankruptcy laws in Texas provide for a longer list of property exempt from sale than most any other state in the country. Chapter 7 bankruptcy dictates the sale of assets, the proceeds of which go to your creditors. That is the federal definition according to the Bankruptcy Code. However, each state sets their parameters within the rule. Texas happens to be gracious with your property. Let’s take a look at the exemptions as set by the state of Texas.
The bankruptcy laws in Texas allow the following to be exempt from sale in your Chapter 7 proceeding: the full value of your home, 200 acres of land for a family living outside a city or town, 100 acres for an individual and 10 acres for those living within city limits; one hundred percent of your wages, whether salaried and/or commissioned; full value of one vehicle, although that is figured into personal property allowance; up to $60,000.00 personal property for a family and $30,000.00 for an individual; one hundred percent of health aids and religious books. That’s a pretty generous allowance, don’t you think?
If you opt for Chapter 7 bankruptcy, your unsecured debts may be discharged whereas Chapter 13 calls for the repayment of your debt at a comfortable rate. This is the option most recommended for debtors who have a steady income and something left over after paying monthly living expenses.
With Chapter 13 bankruptcy, you will pay a mutually agreed upon lump sum to the courts and they will distribute payment to your creditors. The repayment period spans three or five years and you keep all of your property. If after the repayment period there are still outstanding balances to your creditors they will be written off and the debtor is no longer liable.
It would be thoughtless in not making you aware of recent changes to the Bankruptcy Rules regardless of the bankruptcy laws in Texas. Simply stated, you must have consulted a reputable, recognized credit counseling organization within 180 days of filing bankruptcy in order to be considered.
Think hard before you file and study the bankruptcy laws in Texas before making your decision. Filing bankruptcy affects your ability to obtain credit. But then, that’s what got you in this mess in the first place, right?