Intentional or not, some people that start that bankruptcy process try to hide assets. This is usually done based on the belief that if you don’t tell anyone about it they won’t find it. That is a flawed assumption for many reasons which we will get into another time, but for now let’s focus on the bottom line. Are you really protecting your assets or risking assets when you attempt to hide something?
Myth – you have to lose all of your property in bankruptcy.
Fact – you only lose your non-exempt property through the bankruptcy process.
The first rule of preserving property with an exemption is that your Woodlands Bankruptcy Attorney has to know it exists. If your bankruptcy attorney does not about a specific piece of property and does not set aside an exemption for it then you risk losing it to the bankruptcy trustee. Clearly this is not the result most people intend which is why it is absolutely critical that you tell your bankruptcy attorney everything that you own.
Many of the people I represent through the bankruptcy process can keep all of their property with strategic use of their bankruptcy property exemptions. Anything they do not tell me about at the outset may be impossible to protect later on. This is why you do not attempt to hide assets.
Every three years the federal bankruptcy exemptions are adjusted for inflation. The adjustment for 2010 applies to cases filed on or after April 1,2010. The federal bankruptcy exemptions are:
- Homestead: $21,625
- Vehicle: $3,450
- Household Goods: $11,525 total with no single item exceeding $550
- Jewelry: $1,450
- Wild Card: Read more…
Every Woodlands Bankruptcy filer faces a choice to use the Texas or Federal Bankruptcy property exemptions. They each have their pros and cons. Exactly which exemption rules are better depends entirely on your unique case. Once you choose to use either the Texas or Federal Bankruptcy exemptions you may not be allowed to change your choice later on even if your circumstances change after your case is filed. The wrong choice can result in you losing property that you may have been able to keep through Bankruptcy. That is what happened to the Schellenbergs. Do not let it happen to you, call (832) 592-7913 to speak with a Woodlands Bankruptcy Attorney today.
Background
The Schellenbergs filed a Chapter 13 Bankruptcy petition on February 2, 2009. The purpose of the filing was to protect from foreclosure a horse ranch that the Schellenbergs had built that was to serve as their homestead and horse training business. The Schellenbergs had borrowed $772, 000 from First State Bank of Central Texas (“FSBCT”) on or about August 10, 2006. On the date of their bankruptcy petition, Read more…
Exempt property is the property you can keep in a Chapter 7 case without having to turn over to the bankruptcy trustee. Any property you have that your Conroe Bankruptcy Attorney does not claim as exempt or that does not qualify as exempt is subject to being turned over to the bankruptcy trustee and liquidated to repay debts. Texas law provides for several property exemptions. Today we will examine the exemption for jewelry.
Sections 42.001(a) and 42.002(a)(6) of the Texas Property Code allow an exemption for jewelry not to exceed Read more…
In every Woodlands Bankruptcy case there is a long list of “exempt property” that you are entitled to keep. In this post we will take a look at the most important exemption for many Woodlands Bankruptcy filers, the homestead exemption.
Put simply, Texas law protects your homestead with very few restrictions. There is no limit to the value of your home. Your Montgomery County Bankruptcy Attorney can protect your $500,000 home just the same as your $100,000 home in Bankruptcy.
There is a limitation on the actual size of your homestead that you can protect. If your home is located in an “urban” area (which is virtually very property except very rural locations) your home can not exceed 10 acres.
If you need the relief that only Bankruptcy can provide, speak with a Woodlands Bankruptcy Attorney today and get control over your debt.
