Bankruptcy in Texas
What’s different about a bankruptcy in Texas? Well, it’s important to realize that even though there are some federal standards for bankruptcy proceedings, each state has its own variations on certain things such as homestead exemptions. For example, if you declare bankruptcy, you’re probably concerned about losing your house. Thankfully, many states have a homestead exemption which would protect your primary place of residence from those creditors who would love to snatch up your belongings.
Some states have a very low homestead exemption which would not protect the full value of your estate. However, Texas bankruptcy laws protect your house from creditors. How much can your house to be worth for it to qualify under these exemptions? Well, Texas has an unlimited homestead exemption, which means that it doesn’t matter how much your house is worth. There is a limit to the amount of land that can be protected by this exemption, but it is a generous amount.
If you live in the city, you can protect up to one acre of land. In rural areas, an individual can protect up to 100 acres of land and families can protect 200 acres. So as you can see, it doesn’t matter if you have a substantial amount of land or an expensive house. These are the protected by Texas bankruptcy laws.
Of course, you still have to be current with your mortgage payments. Bankruptcy homestead exemptions protect your house from being liquidated in order to pay off unsecured debts like credit cards or other creditors. However, your house can still be taken away by the bank if you do not pay off your mortgage payments. So, it’s nice to know that you have some extra protection if you have to declare bankruptcy. You shouldn’t have to lose your house if you are unable to pay off your debts that were never secured in the first place.
Click here for more information on bankruptcy in Texas.