How Much of Your Property Will You Lose if You File for Bankruptcy?

How Much of Your Property Will You Lose if You File for Bankruptcy?

filing for bankruptcy in texas

The scariest feeling many people who are filing for bankruptcy in Texas have is losing all of their property. The truth is this is very rarely the case for a few reasons. There are exemptions in place that allow most people to keep their possessions enabling them to live a fairly normal life. In other words, you won’t be homeless if you file for Chapter 7 bankruptcy. A Houston bankruptcy lawyer can explain more to you about your specific situation, but here is some information about what property you can expect to lose and keep if you file for bankruptcy.

Most People Are Surprised At What They Can Keep

It’s common to have a fear of losing your house, car or other valuable items you need to make a living when filing for bankruptcy in Texas. However, after talking to a Houston bankruptcy attorney, many people are surprised to know they are able to keep these items. Even things like clothing, furniture in the home, retirement accounts and other items won’t be taken away from you in many cases. A lot of what you can keep depends on the amount you owe, the value of the item and the equity you have in a particular asset. In many situations, the court may decide to let you keep the items since it doesn’t make financial sense for them to take them away.

Take Advantage of Exemptions

Exempt property versus nonexempt property needs to be discussed with a Houston bankruptcy lawyer. People who file for Chapter 7 bankruptcy have mostly exempt property, which can include the home, a vehicle and other property. Some nonexempt property can be seized during bankruptcy proceedings. However, even this nonexempt property can be kept by offering up exempt property in exchange, or buying it back when you have the cash available.

Speak With A Bankruptcy Lawyer To Know Your Rights

There are so many different laws to know when filing for bankruptcy in Texas. That’s why working with a bankruptcy lawyer is a necessity, so you don’t lose any property you need to live a normal lifestyle. The exemptions were put in place to protect people from becoming homeless and still being able to provide for themselves and their families. Every bankruptcy situation is unique, so the expertise of a bankruptcy lawyer is necessary.

Bryeans & Garcia, PLLC strives to protect the assets of our clients when filing for bankruptcy is a necessity. We take the time to understand your entire situation to put together the best case in order to help you live a normal lifestyle after filing for bankruptcy. Be sure to contact us today to schedule a free consultation with one of our experienced attorneys at our Houston office or Ft. Worth office.