When you are entering into a bankruptcy no matter whether it is a Chapter 7 or Chapter 13 you are allowed some exemptions. Exemptions mean property that you are allowed to keep. These are very important to everyone that is going into this type of debt relief.
Usually one of the first questions a client will ask their Fort Worth bankruptcy attorney is what will they lose and what will they be allowed to keep in their bankruptcy action?
Every state has their own bankruptcy rules that they follow and this includes the exemptions. There are also Federal laws pertaining to bankruptcy and within these rules there are also exemptions. In Texas there is a dollar amount that is set on the various exemptions that are applicable in this State.
Sometimes a State will determine that their own exemption bankruptcy laws must be followed. Other States will allow an individual going bankrupt to make a choice of whether they want to follow the Federal bankruptcy exemptions or the State ones. In Texas, this State gives you the option of which exemption laws you want to rely on.
Every individual is different when it comes to their bankruptcy so it is difficult to determine which exemption rulings are best for them, until all of the details of the situation have been determined. This is one of the reasons why having legal counsel is so important when going through a bankruptcy no matter what state it is taking place in.