Understanding Bankruptcy Exemptions
For most people, the potential for loss of assets is a deterrent from entering the bankruptcy process. Luckily, there is very little actual threat in the way of asset liquidation in most bankruptcy cases. Why? The bankruptcy exemption laws allow for most of one’s personal property to be protected during debt resolution.
Federal Or State
There are two options for bankruptcy filers when it comes to protecting assets. The federal bankruptcy exemption laws are open to everyone, but may not offer as great of protection as some state exemptions.
For example, protecting a homestead is limited to $21,625 under federal exemption laws; whereas a home can be protected with an unlimited dollar amount under Texas exemption laws. Federal laws allow for $11,525 in personal property to be protected, including items such as furniture, appliances, clothing and the like. Texas exemptions allow for up to $30,000 in personal property protection for an individual and $60,000 for a family. Other items such as cars, jewelry and equipment are also better protected under the Texas emption laws than they are under federal exemptions.
Each state carries different exemption laws that may or may not exceed the protection value offered under federal exemptions. If you are interested in protecting your assets in bankruptcy, contact a Dallas bankruptcy lawyer today to find out could be protected in your case.