If you are struggling to pay down debt and make ends meet, then you may want to think about filing Chapter 7 bankruptcy. After filing, you will be able to completely discharge most debts, allowing you to breathe free again.
Many are afraid that filing Chapter 7 will mean that they have to give up everything they own, such as a home or a car, but that isn’t always the case. In fact, it’s very common for those who file Chapter 7 bankruptcy to not have to give up any possessions at all.
Texas Bankruptcy Exemptions
- Homestead Exemption – Texas bankruptcy law allows for unlimited homestead exemption on any primary residence on 10 acres or less inside city, tow, or village limits, and up to 100 acres in the country. That means that you keep your home.
- Vehicle Exemption – The Texas exemption for motor vehicles is equally as generous, allowing you to protect the entire value of one car per licensed driver within your household. Even if one member does not have a license, you may still be able to exempt a vehicle if you show that they rely on another person to drive it for them. This means you could keep your car.
- Personal Property Exemption – In Texas, you are able to exempt up to $50,000 in personal property if you are single without a family, and $100,000 if you have a family. Personal property includes clothing, livestock, health savings account, jewelry (up to $12,500), books, athletic equipment, and two firearms.
- Married Couple Exemption – If you are married and are filing a joint bankruptcy petition, you may double all of your exemptions.
Using these exemptions, most people are able to discharge their debt without ever having to give up their home, car, or any possessions. Talk to a bankruptcy attorney about other exemptions for even more protection.