Personal Property in Your Texas Bankruptcy
Many people have the mistaken notion that they will lose everything when they file for personal bankruptcy. In reality, most people are able to keep all assets while discharging their debts.
Whether you will have to forfeit any assets depends on your circumstances. For answers to all your questions about bankruptcy, contact the law firm of Randolph N. Osherow, P.C. in San Antonio, Texas. I provide a free initial consultation to individuals and business owners throughout Bexar County.
What Assets Are Exempt in Bankruptcy?
In a Chapter 13 bankruptcy, you repay some or all of your debts over time. Therefore, you do not forfeit any assets.
In a Chapter 7 bankruptcy, some assets are exempt. Any non-exempt property must be surrendered to the bankruptcy trustee to be liquidated and distributed to your creditors.
In Texas, you can choose from a federal list of exemptions or the state exemptions when filing Chapter 7. For most filers, the federal exemptions are more generous. But if your house is paid off, Texas exempts unlimited home equity. I will closely examine all your assets to determine which exemptions give you the best advantage in bankruptcy.
In general, you will be able to keep:
- Your house* and home equity
- One car each* if you are married
- All qualified retirement savings (401k, pension, IRA, insurance policies and annuities)
- Your household furnishings and clothing
- Jewelry up to a certain limit
- Tools of trade
- Wages
* To keep your home and vehicles, you must continue payments and pay any arrears. Otherwise the lender can initiate foreclosure or repossession, during or after bankruptcy.
The federal exemptions include a "wild card" for other personal property, up to a total of $22,400 for a couple or $11,200 for an individual.
Non-Exempt Assets
Under Texas law, you cannot exempt cash or money in bank accounts. You also may have to forfeit a boat, a second home or land other than your homestead.
Caution: It is considered fraud (subject to criminal and civil penalties) to retitle assets or transfer property to friends or family to avoid losing them in bankruptcy.
For an overview of bankruptcy or questions about a specific asset, call my San Antonio office at 888-846-5141 to arrange a free consultation. From 25 years of experience as both a bankruptcy lawyer and a trustee, I can provide dependable legal advice and solid representation. As a solo attorney, you deal with me directly from start to finish.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
