Filing for bankruptcy is not a decision that many people in Texas take lightly — nor should they. Although bankruptcy can be an effective debt relief tool, it is important to consider exactly what it will mean for you and your future before you choose to file.
One of the most common fears we hear at Pelley Law Office about filing for bankruptcy is that you will lose your most important assets. Many people believe they will lose everything, including their home, if they seek debt relief through Chapter 7 or Chapter 13 bankruptcy. Fortunately, this is not true. In fact, several types of property are exempt from liquidation or being seized by creditors during bankruptcy.
Under the Texas Property Code, there are several exemptions. If you file for bankruptcy — no matter which type, you will be allowed to keep the following property:
- Personal property valued up to $30,000 for individuals and $60,000 for families. This property includes clothes, cars, furniture and jewelry among others.
- Tools and equipment related to your work. For ranchers and farmers, this means you can keep any vehicles and other equipment that you need to work.
- Your primary residence, no matter how much it is worth.
- Retirement accounts, including IRAs and 401(k)s
Federal law allows other exemptions. In Texas, you have the option to file under state law or federal law. As your attorneys, we will carefully analyze both options to determine which makes the most sense. We make it our priority to protect your assets above all else.
The purpose of bankruptcy is not to make life even harder for you by taking away everything you own. Instead, it exists to help you get through this difficult time in your life and find stable ground. To learn more about how we can help, visit our website page on Texas exemptions.