Texas bankruptcy exemption is designed to allow you to keep certain property such as equity in your home, your automobile, tools of your trade, household furniture, firearms, clothing, and even the family bible. Many individuals ask their bankruptcy attorney in Texas about checking accounts and whether or not the money inside these banking accounts can be exempted also. This is sometimes phrased as, “cash in hand” and these can sometimes be protected, depending on what type of account the money is housed in. The answer also depends on if you choose federal exemptions or Texas bankruptcy exemptions when you file for bankruptcy.
Qualified Retirement Funds
If you have money in a tax-exempt pension or retirement account, you don’t have to worry about using exemptions to protect these funds. Texas law allows for the exemption of all state, district, and other public employees (police, firefighters, judges, and municipal employees) retirement and pension benefits, IRA, Roth IRAs
Exemptions for Checking Accounts
Unfortunately, a regular checking account isn’t automatically protected by the state and federal rules governing exemptions. If you have a large amount of cash on hand or in the bank, you can protect it by using the federal bankruptcy wildcard exemptions. The wildcard exemption allows you to exempt up to $1,250 and up to an additional $11,850 of any unused homestead exemptions.
Contact Your Bankruptcy Attorney
Depending on which district of Texas you file bankruptcy in, your bankruptcy trustee may require you bring bank statement so your 341 meeting of creditors to show cash you have in the bank. Not only will your Texas bankruptcy attorney be familiar with how to use exemptions to protect the largest amount of property, but will also be familiar with working with bankruptcy trustees in your district, helping successfully navigate the bankruptcy process.