The Homestead Exemption in Texas
When filing for Chapter 7 bankruptcy, certain assets will be exempt from seizure and liquidation in order to pay your debts. Texas is actually one of the most lenient states in the country with regards to exemptions and will allow debtors to retain a surprisingly large amount of their property when pursuing a Chapter 7 bankruptcy filing.
If your debts have become unmanageable, it may be time to consider Chapter 7 bankruptcy as a means of relieving your debt burden and securing a fresh financial start. Call the experienced Houston bankruptcy attorneys at the Russell Van Beustring P.C., today at 713-973-6650 to learn more about your legal options.
Texas law places a large value on home and land ownership, and is one of seven states that allows an unlimited value of land and home property to be exempted, so long as the size of the homestead does not exceed 10 acres in the city and 100 acres elsewhere (200 acres for families). This will usually protect your home from liquidation, but a cap of $125,000 on the exemption will be enforced in the following situations:
- The property was acquired within the previous 1215 days
- The debtor has been convicted of a felony which demonstrated abuse of the Bankruptcy Code
- The debtor has outstanding debts from financial crimes or intentional torts
Additionally, any attempt to use non-exempt property to increase the value of a homestead prior to filing for bankruptcy will reduce the value of the exemption on the homestead by an amount proportional to the money spent.
If you have questions about how much of your property will be exempt from liquidation in a bankruptcy filing, the experienced Houston bankruptcy attorneys at the Russell Van Beustring P.C., have the knowledge and the resources necessary to provide you with the answers you’re looking for. Call us today at 713-973-6650 to learn more about how a bankruptcy attorney can help guide you through the process of filing for Chapter 7.