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What Can I Keep if I File for Bankruptcy? Is Everything Lost?

What Can I Keep if I File for Bankruptcy? Is Everything Lost?
"People who are contemplating bankruptcy as a solution to their financial problems frequently want to know which assets they will lose and which they will be able to retain. The response depends on the sort of bankruptcy filing. In a Chapter 13 bankruptcy, you get to retain everything, but you must pay back some or all of your debts through a payment plan. In a Chapter 7 bankruptcy, you must surrender all of your property to the Trustee, except for those items that are exempt under bankruptcy law. By examining the bankruptcy exemptions, you can determine what you will be permitted to retain.

In Texas, a debtor may utilize either the Federal Bankruptcy Law Exemptions or the Texas Law Exemptions, but not both. You must choose between the two sets of regulations. In most instances, Texas law provides the debtor with more exemptions, so the following discussion will focus on Texas law exemptions.

Homestead Exemption: According to the Texas Bankruptcy Code, there is no maximum exemption valuation for the debtor's home. If a homestead is situated in a city, town, or village, the property cannot exceed one acre in size. For properties located outside of a city, town, or village, the maximum acreage for an individual is 100 acres and for a family it is 200 acres. To qualify for this exemption, you must have resided in Texas for at least 2 years and purchased the property at least 1,215 days (3.3 years) prior to the filing date.

Exemptions for Personal Property In Texas, a single debtor may retain up to $30,000 worth of personal property, while a family may retain up to $60,000 worth of personal property. The debtor's assets are valued at resale (or garage sale) prices. Personal property that contributes to the aforementioned totals may include the following:

Included in this category are sofas, dining tables, mattresses, etc.

Except for jewelry and minks, this comprises everything worn on the body besides jewelry and minks. Additionally, jewelry is exempt to a certain extent. The debtor may retain jewelry valued at up to 25 percent of the exemption. For example, a single debtor can only retain jewelry worth up to $7,500.

Two firearms may qualify for an exemption.

This includes bicycles, exercise apparatus, treadmills, tennis racquets, etc. To qualify for this exemption, the item must be for individual use. Under the exemption, a sailboat does not constitute as sporting equipment.

5.Motor Vehicles-A motor vehicle with 2, 3, or 4 axles is exempt for each family member who possesses a valid driver's license or who does not possess a valid driver's license but relies on someone else for transportation.

6. Wages - According to Texas bankruptcy law, wages are exempt unless they are being seized for child support payment. Additionally, if the debtor is self-employed, he may only claim 25% of the total exemption in compensation. According to this rule, unpaid commissions are exempt up to 25 percent of the total exemption.

In addition to the categories outlined above, this category includes farm equipment, tools of the profession, household pets, some farm animals, health aids, specific life insurance policies, food, and vehicles used for farming and ranching.

Other Property Exemptions: In addition to the domicile and property exemptions listed above, the debtor may be eligible for additional and more complex exemptions. Exemptions include, among others, the Retirement Plan Exemption, the Veteran's Exemption, the Insurance Benefits Exemption, the Texas Public Benefits Exemptions, and the Child Support and Alimony Exemptions.

Exemption law in bankruptcy is a very complex aspect of bankruptcy law. Consult with an experienced bankruptcy attorney to determine which bankruptcy exemptions will be available to you when you file.""

" - https://www.affordablecebu.com/

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"What Can I Keep if I File for Bankruptcy? Is Everything Lost?" was written by Mary under the Finance / Wealth category. It has been read 132 times and generated 0 comments. The article was created on and updated on 03 June 2023.
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