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Exemptions in a Chapter 13 Bankruptcy Filing

Taking advantage of the opportunities provided by a bankruptcy court can be extremely helpful for many debtors who are faced with overwhelming bills. By establishing a Chapter 13 repayment plan that pays off their secured debts and a portion of their unsecured debts over a period of three to five years, those with sufficient income can organize all of their obligations into one manageable payment and eliminate a measure of their debt in the process. However, when drafting a repayment plan, it is necessary to know the exemptions that you will be allowed as a debtor.

Establishing a repayment plan is a complicated process, particularly when you wish to retain significant amounts of personal property that are not considered exempt in bankruptcy proceedings. With the aid of a skilled attorney, you can better ensure that the process is completed efficiently and effectively. A Houston Chapter 13 bankruptcy lawyer at the Russell Van Beustring P.C., can help you create a repayment plan that serves your needs and allows you the debt relief you need without forcing you to forfeit all your belongings. To learn more about your legal options, call us today at 713-973-6650.

How Exemptions Work in Chapter 13

Congress has been careful to ensure that debtors do not abuse the bankruptcy system by filing for Chapter 13 and exempting large amounts of property for which they had no intention of paying, leaving honest creditors footing the bills. To this end, only a base value in property such as a home, car, or other belongings is considered exempt from repayment. The value of all other property must be added to the total amount required to be paid over the course of the 3-5 year repayment plan.

These guidelines can have serious implications for debtors with large amounts of property in their possession which they wish to retain. Should your income be insufficient to pay off the value of your non-exempt property over the course of a five year plan, you will be unable to afford Chapter 13 bankruptcy and the court will deny your repayment plan.

Contact Us

At the Russell Van Beustring P.C., our legal team has extensive experience in all areas of bankruptcy law and can help you to analyze your finances in order to determine the best course of action for managing your debt. For a free consultation with our experienced Houston bankruptcy lawyers, call today at 713-973-6650.


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