Are Texas Bankruptcies Different?

They say everything is bigger in Texas and that may well be true but when it comes to bankruptcies are they different in Texas you may wonder? The answer is…somewhat! While many do not realize that all bankruptcies fall under Federal statutes, meaning that the laws governing a bankruptcy are established at the Federal level and not by the individual states. The states can and do have some input in the things that can be exempted from a bankruptcy. Texas is a bit different in that regard.

Texas actually has very liberal exemptions built into its bankruptcy provisions. Under the “homestead” exemption for instance a debtor can apply to have their home protected from bankruptcy proceedings provided that they meet the requirements of residency in that state, and the property does not exceed 10 acres if in a town or 100 acres anywhere else in the state.

In some cases Texans are able to secure exemptions for their vehicles as well and for a certain percentage of their family’s personal property. The result of these exemptions is that they can allow a family or individual to return to solvency in a much shorter amount of time than in other some states.

Always contact a qualified attorney who specializes in bankruptcy law before deciding to begin the process no matter which state you may reside in. they can help you navigate the uncertain waters and make the process much less painful in the long run.