Declaring bankruptcy could mean that you are going to be involved with not only your state government but also the federal government according to the bankruptcy laws of the state in which you file. During your bankruptcy you are going to learn that you have certain debts that may be exempt. How this is determined is going to be reliant on whether the state you live in follows their own state exemptions or whether they follow the federal exemptions.
When you file for bankruptcy you are going to choose which of your properties will be exempt. A bankruptcy trustee is assigned to your case and this individual, as well as, any of your creditors can challenge the exemptions claimed by you. In order to do this either party must file a document called objection to exemptions. This objection must be filed within 30 days after the meeting of creditors or if any amendments have been filed to your list of exemptions. If this deadline is not met then it cannot be considered in the bankruptcy courts. However, the court could apply for an extension of time. If the objection to exemption is filed properly then it has to be served on you as the debtor, as well as, your attorney and any other parties interested in your bankruptcy.
You will then have a specific amount of time to respond to this objection. If the creditor is filing the challenge against your exception they must prove why it is improper. Some of the common reasons that they are used for this is, that they will state that the exemption that is being claimed is not authorized by the law, or that the value of the property being exempt is not correct.
Your bankruptcy attorney will handle this situation for you as well as all the other segments of your bankruptcy. Because of the complexity and time involved with objections you want to use a professional bankruptcy attorney to assist you with your bankruptcy action.
Schedule an initial consultation with us to learn about your Texas exemptions.