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Federal and Texas Bankruptcy Exemptions

Debtors filing for bankruptcy must identify those assets which they wish to exclude from the bankruptcy estate. In other words, the debtor must specifically identify each asset he or she wishes to keep. If a debtor fails to list an asset that might otherwise be exempt, the bankruptcy trustee has the right to make the debtor to turn that asset over to the trustee so that the trustee might sell it and distribute the proceeds to creditors.

The good news is that most assets are protected. However, note that all assets are not necessarily exempt. There are substantial limitations on which assets may be exempt, which limitations will either be governed by federal law or Texas law. It is up to the debtor to select which set of exemption statutes will apply to his or her case.

Federal Exemptions:

For those assets that may be exempt under federal bankruptcy law

Other Federal Exemptions:

Note that there are certain additional federal exemptions if the debtor selects the Texas exemption laws. Those other federal exemptions are listed

Texas Exemptions:

For those assets exempt under Texas

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9.5Russell Van Beustring