When you file for Chapter 7 bankruptcy, you are agreeing to give up certain non-exempt assets so that they can be sold to pay off your debts. Luckily, several of your assets qualify as exempt, so you will be able to keep a lot of your belongings as well. Here's how some of your assets are generally categorized:
Chapter 7 Bankruptcy: Exempt Property
These are belongings you will usually get to keep after you apply for Chapter 7 bankruptcy.
- Your house. Limitations on house value can vary state by state, but in Texas, we are lucky that there is no value limit.
- One vehicle, up to a certain value
- Household furnishings and appliances, up to a certain value
- Clothing, up to a certain value
- Jewelry, up to a certain value
Chapter 7 Bankruptcy: Non-exempt Property
These are belongings you will usually have to surrender after you apply for Chapter 7 bankruptcy in Texas.
- A second vehicle
- A second home
- Personal collections, like coins or stamps
- Family heirlooms
- Bank accounts, stocks, and bonds
What you can keep and what you need to give up will depend on several factors, so it is very important that you consult an experienced Texas bankruptcy lawyer before making any legal decisions. Your Chapter 7 bankruptcy attorney will be able to look at your financial situation and make recommendations that will eliminate your debt and save you a lot of heartache.
Contact Houston debt relief attorney J. Thomas Black today for your free consultation at 888-707-1233. Mr. Black has over 30 years of experience with bankruptcy law and will be able to get you on the path toward financial freedom.