Protecting Your Family in Bankruptcy With a Homestead Exemption
People are often afraid that they might lose their home if they file a bankruptcy. Nothing could be further from the truth. As long as a debtor pays for the house, in Texas they will be allowed to keep it. The homestead exemption protects a primary home from creditors and taxes, allowing most families to keep what are typically their most valuable possession.
Under Texas law, your primary residence is considered a homestead. Your homestead has unlimited protection from creditors when you file for Chapter 7 or Chapter 13 bankruptcy.
Who Qualifies for the Homestead Exemption?
Texas debtors get a homestead exemption without a cap under Texas and bankruptcy law unless you recently moved to Texas and put down more than $125,000 per debtor on the house or if you live on more than 100 acres in the country or 10 in the city.
The Next Step
Because the homestead exemption is just one piece of the complex bankruptcy puzzle, talk to a Texas bankruptcy lawyer who can help you understand how all the facts of your financial situation fit into place. Learn how the law can protect you, your family and your home.