Chapter 7 bankruptcy involves the sale – or liquidation – of a debtor’s assets in order to repay creditors. There are certain belongings that will be exempt from this sale, which fall under real property exemptions and personal property exemptions. To find out more about your financial standing during the Chapter 7 process, seek a bankruptcy lawyer.
Real Property Exemptions
There are 2 types of real property holdings under Texas law that are exempt from sale, although they are still subject to liens:
- one or more cemetery plots; and
- urban and rural homesteads, including any improvements made on the land.
Personal Property Exemptions
Certain personal belongings may be exempt, provided the fair market value of the items does not exceed $60,000 for a family or $30,000 for a single individual:
- home furnishings;
- food provisions;
- farming equipment;
- motor vehicles, tools, or other equipment used for a profession;
- 2 firearms;
- livestock; and
- household pets.
Regardless of value, there are personal possessions that fall under an unlimited exemption type:
- current wages owed by an employer to the debtor;
- financial support, such as alimony, provided for the debtor or to their dependents; and
- professionally prescribed health aids, such as a wheelchair.
A Bankruptcy Lawyer Can Help
The law offices of Warren & Migliaccio have specialized in bankruptcy law since 1994. When dealing with debt collectors, consumers could be faced with organizations that may attempt to take advantage of their rights and property. The team at Warren & Migliaccio will work with you to devise the best strategy to recoup your financial freedom. For a free consultation, call 1-888-584-9614 today.