Will I Lose All My Property?
A common misconception regarding Chapter 7 bankruptcy is that a debtor will lose all of his or her property. This is simply not the case. If you file under Chapter 7, you will face the liquidation of all non-exempt assets to pay off creditors, but this does not include everything you own. You may find that most - if not all - of your property is protected from liquidation.
Every state has different laws that pertain to property and asset exemptions in bankruptcy filings. Federal law also offers protection to debtors in this regard. In Texas, a San Antonio debtor may choose between state or federal exemptions to protect his or her property. Property protected under Texas bankruptcy exemptions for an individual may include:
- Homestead - up to 10 acres in an urban setting or 100 acres elsewhere
- Personal property valued at up to $30,000 (furniture, clothing, food, family heirlooms, jewelry, appliances, livestock, 2 firearms, pets, etc.)
- Certain insurance or public benefits
- Pensions, in some situations
- Alimony and child support
Find out more about how your property may be affected by bankruptcy. For a free, confidential review of your unique financial situation, contact a San Antonio Bankruptcy Attorney at the Malaise Law Firm today.