Filing Bankruptcy In Texas

Jan 27th, 2014 | By | Category: Guide

Texas is the second most populated state in the United States. It has a population of about 25 million people. Texas by itself constitutes almost 8 percent of the people of the United States. Texas is in the 5th circuit of U.S Bankruptcy courts. Filing for bankruptcy in Texas has had a surprisingly small increase of only 3 percent in 2008 from 2007. While the national average increase for filing bankruptcy in 2008 from 2007 was 31.4 Percent. The total cases of filing for bankruptcy in Texas in 2008 were 44, 258 as compared to 42, 931 cases in 2007.

If you’re seeking to file for bankruptcy in Texas, you should learn that the bankruptcy law in Texas is the same thing as in other states because bankruptcy law falls under a federal jurisdiction. The difference however when you do file for bankruptcy in Texas as opposition to the other states are the Bankruptcy Texas exemptions.

And, to broaden this topic..

Only a bankruptcy attorney that practices in Texas can fully answer all your bankruptcy questions regarding the full extent of the allowable exemptions. Bankruptcy attorneys in Texas will show you a little bit how to file bankruptcy to fully take advantage of these exemptions. A Texas bankruptcy lawyer can also guide you through whether it would benefit you more to present a bankruptcy chapter 7 or a bankruptcy chapter 13.

You are allowed an unlimited homestead exemption if your property is under 10 acres in the city or 100 acres outside the city, as per the bankruptcy law in Texas. For a family outside the city it can be up to 200 acres. If the property was acquired within the last 1215 days of the deposit for bankruptcy the homestead exemption is limited to $136, 875.

While the federal homestead exemption for keeping your home exempt from your bankruptcy allows for $20, 020 of exemption, the Texas exemption allows an unlimited value to be exempt on your home. Your home’s value can be exempt for up to 10 acres in city limits and 200 acres in the countryside for a family (100 acres for an individual).

Filing bankruptcy in texas

Under federal law $10, 775 of personal property is exempt and a family vehicle is protected up to $3, 225. But Texas bankruptcy law allows for $30, 000 worth of personal property to be exempt for an individual and $60, 000 for a family and will enable one family vehicle to be exempt, no matter the value. The car does, however, count towards the personal property cap of $60, $30, or 000 (, 000 for an individual).

Bankruptcy Texas exemptions for personal property are very specific and cater to protecting farmers amongst other professions. A Texas bankruptcy lawyer can explain this to you thoroughly but bankruptcy exemptions in Texas make provisions for horses, fowl, cows, and other stock.

An interesting exemption in filing bankruptcy in Texas is you’re allowed to keep 2 firearms. Your automobile falls under personal property where you’re allowed a bankruptcy total exemption of up to $30, 000 or $60, 000 for the leader of the family. Personal property is to include instruments of the trade and any wages owed. Jewelry is allowed in personal property but may not be up to 25% of the total value of the personal property.

A bankruptcy attorney in Texas will guide you through how to file bankruptcy and enjoy of the allowable exemptions that pertain to your particular case. If you’re considering filing bankruptcy in Texas, whether it’s all in your best interest to file a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy, the bankruptcy attorneys can answer all your bankruptcy questions and help you through this trying situation.

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