Understand the Texas Exemptions
Texans are fortunate. They live in a state where taxes are low and opportunities are plentiful. What’s more, our laws are forgiving for people who take chances, make mistakes or fall down on their luck. When facing bankruptcy, Texans find that although time may not be on their side, the law related to exempt assets in bankruptcy is.
Texas law shields certain types of property from the reach of your unsecured creditors if you decide to declare bankruptcy. As you confront your financial difficulties, it may be important to remember what assets are exempt – and what assets are not.
The Texas homestead exemption is one of the most generous in the country. Regardless of its value, a residence located on no more than 10 acres in the city or 100 acres in the country is exempt from the reach of creditors. For that matter, so are the proceeds of the sale of a residence if you file for bankruptcy within six months.
The Texas motor vehicle exemption is generous, too. One vehicle per licensed household member, regardless of its value, is exempt under Texas law. In other words, whether it’s a Mercury or a Mercedes, each driver may keep his car.
Third, Texas exemption law protects certain pension, retirement and insurance accounts. For older debtors, these exemptions may be particularly important, as your net worth may be high, but your impending health-related expenses may be even higher. If your wealth has been placed in the right asset classes, you may be able to hold on to your retirement nest egg.
Finally, Texas exemption law shields a number of items of personal property, $30,000 for an individual or $60,000 per couple, including firearms, family heirlooms, jewelry, pets and clothing. As you think about how to remember your past, continue in the present and rebuild in the future, these items can be of particular sentimental as well as financial value.
Want to know more about Texas exemption law and how it may impact your bankruptcy? The dedicated attorneys at Fears Nachawati are prepared to help you get started with your free consultation. Let us inform your decisions and put your mind at ease.