Many people believe that when you file a bankruptcy case, you loose everything that you own. This is not true! When you file a bankruptcy case and you have lived in the State of Texas for two years prior to your bankruptcy filing, you get the option of using either the federal bankruptcy exemptions laws or the State of Texas’ exemption laws. Both of these laws let you keep virtually all of your assets. These laws are very complex. However, a general summary of the items that are exempt under these laws are:
- Your home
- Your cars
- Household furnishings;
- Retirement accounts and pension plans up to $1 million in value;
- Tools of the Trade
- Life insurance policies
There are some monetary limits to these exemptions. It is important to tell your bankruptcy lawyer all of your assets and all of your liabilities so that your lawyer can explain all of your options. A good bankruptcy attorney can use the exemption laws to let you keep your assets. Remember, your bankruptcy schedules are signed under the penalty of perjury, so don’t hide anything from your lawyer. A good, experienced bankruptcy lawyer can assist you take full advantage of exemptions laws.