Once you become involved in a Texas bankruptcy there is much that you are going to learn. While it may be stressful for you at the time, try to keep your eye on the end goal which is being more financially stable once your bankruptcy has been concluded.
One of the things that you’re going to discover is that there are certain exemptions that you will be able to use during your bankruptcy proceeding. These exemptions dictate what property you will be able to keep. This is a very important area of the bankruptcy for most people.
Every state has their own laws that they utilize for their bankruptcy proceedings. There is a federal exemption list as well as each state has their own exemption list, and it will depend on which one of these you can use according to the state laws. Some allow you to make a choice while others will make it so you have to use the state exemption list. In Texas you are given the choice of which you want to use.
When it comes to the various types of exemptions there well be limits on them. For some of your property you may have equity in these and the exemption limits will apply to the amount of equity that you have. What this means is the difference between what you still owe on that specific property and what the value is. For example, if you have a house that the current market value is $300,000 and you still owe $100,000 on it then you have built up equity of $200,000. This is just one example of the many types of exemptions that may be available to you. Once you have retained an experienced bankruptcy attorney, this professional will explain in detail to you what your exemptions are.