Are you a resident in Texas? Bankruptcy looking like it has a place in your future? Is Chapter 13 – a form of reorganization – out of the question for you? If so, you’re in the right place at the right time. While no one wants to be in a financial situation that ends in bankruptcy, you actually couldn’t be more fortunate. Filing for Chapter 7 in the Texas bankruptcy courts can be a great solution to your financial troubles.
In Texas, Chapter 7 is Great
Really. It’s hard to beat Texas’ state statutes on Chapter 7 bankruptcy. In case you’re wondering what the big difference between Chapter 7, Chapter 13, and other types of bankruptcy is, let’s take a very basic run-through.
Chapter 7 is a form of liquidation bankruptcy. Essentially, if you are unable to repay your creditors, you can liquidate your assets through Chapter 7 bankruptcy and get a clean slate to start on.
Chapter 13 exists for those who just need to have their debts seriously restructured. This route is more commonly taken by those who either (a) have a decent, steady income, or (b) have debt problems, but not problems that are completely unmanageable.
Why is Chapter 7 so great? Texas allows you to choose between state statutes or Federal statutes. If you choose to file under the state of Texas’ statutes, then you can take advantage of the Texas Homestead Exemption benefit. Through this benefit, you can keep your urban property as long as it doesn’t exceed 10 acres! This is possible even when you file for Chapter 7 bankruptcy! And, if you live in a rural area, that limit jumps up to 100 acres.
In some states the limit is only up to a certain dollar amount… sometimes as low as $5,000. If you’re filing Chapter 7, there’s no better place than Texas.