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Bankruptcy myth 3: You will lose all that you own

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by , 11-02-2011 at 08:57 PM (616 Views)
That’s crazy, especially because you live in Texas. The laws that protect property are called “exemption laws” or “exemptions”. Bankruptcy is supposed to give you a fresh start and the idea behind exemptions is that it’s pretty difficult to start over without things like clothing, a home and transportation. Generally, simply by living in Texas, you can protect an unlimited amount of equity in the home that you live in. You can also have up to $30,000 worth of personal belongings ($60,000 if you are married) and that’s pretty much thrift shop value and it includes one vehicle per licensed driver in the household. There is a whole lot more to explain here so check out our exemptions page for more details.


One important note for Texans: you get these exemptions simply by living here in Texas. To use them in a bankruptcy however, you have to have lived here for at least 2 years prior to the day you file your bankruptcy in Texas. If you have not lived here for at least two years, it can get a bit complicated.

Wherever you live be certain to ask your bankruptcy attorney if these exemptions apply in your state.

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