Many of our clients wonder how a bankruptcy proceeding will affect their property and their family’s future. Contrary to popular myth, bankruptcy will not result in the loss of all of your property.
Each state decides on the available “exemptions”, which are basically lists of things that you can keep and isolate from a bankruptcy proceeding. In other words, the exemptions are removed from the estate – so the trustee and court are not able to touch them.
In Texas, the following exemptions are available:
If you live in a city and your home in on 10 acres or less OR if you’re in the country on 100 acres or less, your home is protected. If you sell your home, the proceeds from the sale are exempt for six months after the sale.
Motor vehicle exemption
You can protect the entire value of one vehicle per each member of your household who is licensed to drive.
Personal property exemption
If you’re a single adult, you can exempt up to $50,000 worth of personal property, or up to $100,000 worth if you’re married. Personal property can include home furnishings, clothing, food, jewelry (which can only account for a quarter of the total exemption), sporting equipment, up to two firearms, burial plots, and health savings accounts.
Retirement account or pension exemption
Most tax exempt retirement accounts and pension accounts are exempt in a bankruptcy proceeding.
If you’ve got more questions about exemptions or how your property and possessions can be protected in a bankruptcy case, please call us today at 214-760-7777 for a free consultation. We’re happy to take the time to sit down with you and explain the ins and outs of your potential bankruptcy proceeding.