Understanding the Bankruptcy Laws in Texas
People have many reasons for filing for bankruptcy. The most common reasons are to silence creditors and eliminate debt, but many use it to protect their home and personal possessions. If you live in Texas and have considered filing for chapter 7 or chapter 13, you should understand that bankruptcy law in Texas.
Texas has included some of the most comprehensive exemptions for chapter 7 bankruptcy in the United States. However, the laws concerning this filing can be complex. Finding an attorney or law firm that is experienced in handling the bankruptcy law in Texas is critical to ensuring your successful filing.
Chapter 7 bankruptcy filings are common in Texas because the state has very strong bankruptcy exemptions. Although debtors find that many financial problems are solved with this action, the bankruptcy laws in Texas can be complicated and include any court filings, deadlines, documents, and meetings. When they wish to rid themselves of unsecured debts such as medical bills and credit cards, attorneys will usually advise them to file for chapter 7 rather than chapter 13 bankruptcy.
This is not necessarily a way to be rid of all debts with no obligation, however. Creditors often exercise their right to liquidate nonexempt assets through auctions and other property sales in exchange for discharging the debt. On the other hand, the bankruptcy laws in Texas often do not include property sales for those who have filed for chapter 7 exemption. There are specific exemptions that allow the debtor to keep certain property. These include the homestead, which covers the full value of the debtor’s home. This is limited to 100 acres for one adult outside of city or town limits, 200 acres outside of the town or city for a family, and 10 acres for anyone who lives within a town or city. Those filing for chapter 7 bankruptcy also keep 100% of their personal commissions and wages. The full value of one automobile is also included although this value is under the $60,000cap for personal property exemptions.
For personal property, the debtor has up to $30,000.00 worth of personal property that is exempt for one adult. For a family, personal property up to $60,000.00 is accepted. 100% of religious books and particular health aides are also covered, and these do not count towards the personal property value cap.
If you are unsure of the bankruptcy law in Texas, contact an experienced attorney or law firm specializing in bankruptcy filing. You will be on your way to building your credit and having peace of mind with just one phone call!