Maximizing Your Exemptions in Chapter 7
When you file for Chapter 7 bankruptcy you are permitted to exempt a set amount of your property, which is protected from the liquidation process that the bankruptcy trustee applies to your non-exempt assets in order to pay your creditors. Deftly managing your exemptions can make an enormous difference in the amount of property you are able to retain following the liquidation and discharge.
At the Russell Van Beustring P.C., we have an extensive understanding of bankruptcy law in Texas and throughout the country, which enables our legal team to offer clear and effective guidance throughout the Chapter 7 process, from filing to discharge. To learn more about your options for maximizing your exemptions, call our Houston Chapter 7 bankruptcy attorneys today at 713-973-6650.
Strategies for Maximization
There are several steps that you can take to help ensure that you exempt as much value as possible in your bankruptcy, including the following common strategies:
- Be sure to file a homestead declaration, otherwise you may be unable to exempt your home in the process of the bankruptcy.
- Prior to your bankruptcy, you may be able to sell non-exempt property and use the proceeds to purchase food, clothing, and other necessities, or some form of exemptible property.
- If you have moved from another state recently, time your bankruptcy to use the set of exemptions that suits your situation best. You must reside continuously in Texas for two years prior to your bankruptcy to use the Texas exemptions, and depending on your situation, it may be more beneficial to use your previous state’s set of exemptions.
- Delay your bankruptcy if you have sizable assets that you are entitled to but have not yet received, such as a tax refund. By waiting until you receive such payment and then spending it on essentials such as rent, food, and clothing, you will be able to protect those assets from liquidation.
Asset manipulation can sometimes be seen as fraud, which is why it is necessary to consult with an attorney who is qualified in this area of law and has the knowledge you need to successfully apply for bankruptcy and claim exemptions.
If you are considering Chapter 7 bankruptcy and have questions about how to maximize your exemptions and protect your property from liquidation, an experienced Houston Chapter 7 exemption lawyer can help you find the answers you need. For a free consultation to discuss the details of your case, call the Russell Van Beustring P.C., today at 713-973-6650.