If you’re filing for bankruptcy, you definitely have a lot on your mind. But, some of the most important questions most people ask revolve around bankruptcy exemptions. Of course, you want to hang onto as much as you can when you go through the bankruptcy process. Fortunately, if you’re filing in the Texas bankruptcy courts, you will be able to keep a good deal of your possessions. However, it’s important to understand this one distinction…
Picking One or the Other
When you file for Texas bankruptcy, you have the choice of Federal exemptions or State exemptions. Filing with the Texas bankruptcy courts offers you this nice bonus, which isn’t available to residents of all states. Instead of being forced to go along with the State of Texas exemption statutes, you can choose the Federal statutes if you so desire. In some states, residents don’t have a choice!
These exemptions usually cover everything from assets to home property to wage garnishments and everything in between. There is one very important thing to remember though. Once you choose to follow either State or Federal bankruptcy exemptions, you are limited to the statutes of one or the other.
You cannot pick and choose which statutes you’d like to apply to the different areas of your case. It’s important to talk this decision over with your bankruptcy attorney, keeping the entire scope of your case in mind when you make your final decision! Good luck to you as you enter into the bankruptcy process! You’ll come out feeling better than you could have imagined!