It may sound ridiculous, but a very common question Texas bankruptcy attorneys hear is regarding how pets are treated in a Texas bankruptcy and if they will be forced to give them up. The good news is in 99.9% of bankruptcy cases, your pets are safe from being sold to pay your creditors. When you file bankruptcy in Texas you can protect your property using exemptions. Bankruptcy exemptions prevent the bankruptcy trustee from seizing and selling certain types of property, up to a certain monitory value.
Texas Bankruptcy Exemptions
When filing for Chapter 7 or Chapter 13 bankruptcy in Texas your initial paperwork will itemize all the assets you own. You are required to put your pets down as assets, however, they’re not usually given much attention when compared to other more valuable property such as real property, automobiles, and financial accounts. While there are no specific bankruptcy exemptions that protect pets, it’s just not reasonable in the vast majority of cases to sell your pet.
Pets in Bankruptcy
When it comes to your furry friend, it’s not completely out of the question, but fairly safe to say that your pets won’t be taken away from you. In the majority of cases, the bankruptcy trustee won’t take your pet and sell it, as it typically wouldn’t be worth the time and effort needed to sell the animal. An exception to this would be if you owned a prize racehorse or top pedigree show dog. If you earn money by breeding animals you should ask your bankruptcy attorney if you can claim animals you own as an asset of trade or trade tool, which many states allow exemptions for. Additionally, if you own a purebred pet that is worth thousands of dollars that the bankruptcy trustee wants to sell, federal bankruptcy exemptions offer a wildcard exemption that can protect any type of assets or property.
Texas Bankruptcy Attorney
If you plan on using the US Bankruptcy Code to obtain debt relief and discharge your debt, you should contact your local Texas bankruptcy attorney for guidance and to ensure your debt is eliminated. A bankruptcy attorney can look at your situation and help you keep you’re the maximum amount of property and assets, including your pets.