Many people don’t realize that bankruptcies are conducted differently according to the various states. There are federal laws that pertain to bankruptcy as well as state laws. It is important that the individual that is thinking of using this form of debt relief understand what the exemptions may be.
Texas Specific Exemptions
For those that are filing for bankruptcy in Texas there are specific Texas bankruptcy exemptions. Also what many people don’t realize when they are going bankrupt is that there are even exemptions that exist. They are under the assumption that either when they go bankrupt that they are not going to lose any of their assets and all of their debts are going to be discharged, or on the other hand there are some that believe they are going to lose everything that they own. This is where exemptions come into play.
When an individual enters into a bankruptcy a bankruptcy estate is set up and everything they own becomes a part of that estate. Individuals that are going into a Chapter 7 bankruptcy may be at risk of some of the property that is in the estate being sold to meet their financial obligations. However, there are exemptions that will exclude some of this property.
When looking at the Texas exemptions there are the homestead exemption, personal property exemptions, motor vehicle exemption, and retirement account and pension exemption. Each of these has specific criteria to them that has to be met.
It is highly important that an individual in Texas that is considering going bankrupt hire an experienced Houston bankruptcy lawyer to assist them right from the beginning of their filing through the entire process, as a bankruptcy can be complex and overwhelming when one is attempting to do this on their own.