Bankruptcy Exemptions
South Texas Bankruptcy Exemptions
One of the biggest myths about bankruptcy is that if you declare bankruptcy, all of your belongings and savings will be liquidated to repay a portion of those debts. In fact, there are quite a few exempt assets that are protected by either federal or state law. Bankruptcy exemptions are those items or assets that the courts cannot seize or liquidate to pay off your creditors. At Malaise Law, a skilled South Texas bankruptcy attorney can guide you through this trying time.
If you are considering bankruptcy in South Texas, you may not realize it but you are in some ways lucky. Most other states have very strict or meager bankruptcy exemptions, but Texas is known for its large quantity of exemptions. There is, however, a limit on the value of assets that you can retain. Individual's personal property assets may be worth up to $30,000, and families' assets may be worth up to $60,000.
Types of Bankruptcy Exemptions
Intangible Exemptions: social security payments, retirement savings, IRA accounts, trusts specified for higher education, HSA (health savings accounts), life insurance (cash value is calculated as part of the value limit), alimony payments, child support, unemployment, and welfare.
Military Exemptions: servicemen wages for active/permanent/overseas duty deposited into savings accounts, seaman's wages, seaman's clothing, military survivor's benefits, military life insurance, and veteran's benefits.
Homestead Exemptions: in a city, village, or town, up to 10 acres of land; outside of a city, village, or town, up to 100 acres of land for single adults and up to 200 acres of land for families; proceeds from property sale are exempt for 6 months
Personal Property Exemptions: clothing, tools of the trade, family heirlooms, furniture, jewelry (cannot account for more than 25% of the value limit), sports equipment, and 2 legally owned firearms.
Farm / Ranch Exemptions: 2 horses/mules/donkeys, 12 head cattle, 60 other livestock, 120 fowl, food for all livestock, 2 blankets and bridles, vehicles and implements.
Motor Vehicles Exemptions: 1 automobile per licensed adult and 1 automobile per minor who is in charge of a non-licensed adult's transportation.
Miscellaneous Exemptions: food, common household pets, health aids (e.g. wheel chairs, walkers, and glasses), burial plots, business partnership property, and unearned but unpaid wages (cannot account for more than 25% of the value limit).
Contact a South Texas Bankruptcy Lawyer at Malaise law to schedule a complimentary bankruptcy consultation. We serve clients throughout South Texas, including those in Corpus Christi, Brownsville, McAllen, and Harlingen.