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  • Know More About Bankruptcy Exemptions

    Call: 888-297-6203

    When in doubt consult experts, is a popular saying. It is of extreme importance, especially in the case of bankruptcy. With so many myths surrounding bankruptcy, it is obvious that people who are struggling with debts are bound to be confused. A bankruptcy filer’s assets and debts are their most important concern, say lawyers of Dallas based bankruptcy law firm Recovery Law Group. What happens to both depends on the chapter of bankruptcy chosen by the bankruptcy filer.

    Individual debtors have the option of filing under Chapter 7 or Chapter 13 bankruptcy. Both these chapters have a different set of rules regarding debt discharge and asset protection. Federal and state government offer exemptions to protect the personal property of the debtor, for them to get the fresh start they deserve after bankruptcy. Each chapter of bankruptcy has its own set of exemptions and rules. An experienced bankruptcy attorney can help select the chapter which will offer to protect as many assets as possible.

    When you file for bankruptcy, everything you own becomes part of the bankruptcy estate. A court-appointed bankruptcy trustee oversees handling the bankruptcy estate. You have a choice between opting for state or federal exemptions to protect your property. Generally, exemptions cover equity in your home, vehicle, personal property, tools of the trade, certain pension accounts, etc. Since each bankruptcy chapter has its own merits, you need to consult a qualified attorney to help select the best option for you. If you need to discuss your case, you can call at 888-297-6023 to schedule an appointment.


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    • Know about Texas Bankruptcy Exemptions

      Know about Texas Bankruptcy Exemptions

      Filing for bankruptcy is often considered to be a taboo. You need to open your mind to realize that it is one of the best options to manage your finances, especially if you are struggling with large debts. The government provides various exemptions to debtors when they file for bankruptcy. Call 888-297-6023 to know more about these exemptions and how you can benefit from them.

      Apart from federal bankruptcy exemptions, every state has its own list of exemptions which protect a large portion of bankruptcy filer’s property. When you file for bankruptcy, everything you own becomes a part of the bankruptcy estate, from which you can keep certain exempt property without paying anything. According to Dallas based bankruptcy law firm, Recovery Law Group, some states offer you a choice between federal and state set of exemptions, while others allow you to choose from the state exemption sets only. Though the state of Texas offers you a choice between state and federal exemptions, the state exemptions are plentiful. What’s more, if any asset is not covered by Texas exemption, you can opt for wildcard exemption of federal bankruptcy scheme. A married couple filing for a joint bankruptcy can double the exemption for any joint property they own!

      Here’s a look at various Texas bankruptcy exemptions:

      1. Texas homestead exemptions

      The unlimited homestead exemption is available for 10 acres or less area residence in village, town or city or 100 acres or less in the country. For married couples, this exemption doubles! In case you sell your house, the proceeds are exempted for 6 months after sale under this exemption.

      1. Texas motor vehicle exemptions

      The entire value of one motor vehicle per licensed household member is available as per this exemption. In case there is an unlicensed person who depends on someone else to drive him/her around, you can still get the vehicle exempted.

      1. Texas personal property exemptions

      Personal property except real estate exemptions cannot exceed $100,000 ($50,000 in case of a single adult, without family). in case your personal property exceeds the exemption limit, that much amount will become non-exempt. This includes:

      • Sports and athletic equipment including bicycles;
      • Home furnishings including family heirlooms;
      • Jewelry (with an upper limit of 25% of total exemption, i.e. $25,000 in case of family and $12,500 in case of individual filer);
      • Food and clothing;
      • Up to 2 firearms;
      • Animals, including pet and domestic, plus their food. You are allowed two mules, donkeys, or horses plus tack, 12 head of cattle, 60 head of livestock and 120 fowl;
      • Health saving accounts;
      • Health aids like walking sticks, wheelchairs, hearing aids, ;
      • Burial plots;
      • Bible or any other sacred book (not subjected to $100,000/$50,000 limits).
      1. Pension and retirement accounts

      Most pension and retirement accounts are exempted in both state and federal exemptions. Texas state also provides exemptions to the following pension and retirement accounts:

      • ERISA-qualifies government or church benefits. This includes IRAs, Keoghs and Roth IRAs.
      • County and district employee retirement and pension benefits.
      • Firefighter pension and retirement benefits.
      • Law enforcement officers, emergency medical personnel survivors’ benefit.
      • Police officer retirement and pension benefits.
      • Judges pension and retirement benefits.
      • Municipal employees, state employees and elected officials’ retirement and pension benefits.
      • Teacher retirement and pension benefits.
      • Retirement benefits which end up being tax-deferred.
      1. Insurance exemptions

      These include:

      • Life, accident, health insurance or annuity benefits such as money, policy profits or cash value due or paid to the beneficiary;
      • Texas employee uniform group insurance;
      • Fraternal benefit society benefits (e.g. from Freemasons, Elks, Knights of Columbus, );
      • Texas public school employees’ group insurance;
      • Texas state college or university employee benefits.

      However, Texas does not offer any exemption against lawsuit proceeds. It also lacks a wildcard exemption through which you can protect any property as per your wish. The silver lining is that such a provision is available in federal exemption set, through which you can protect a portion of such funds. In case you have a pending lawsuit or an injury claim under process in court, it becomes part of your bankruptcy estate. If it appears to be of value, the bankruptcy trustee Dallas might hire a lawyer to litigate it. It is important to, therefore, check exemptions before filing for bankruptcy.


        *Are you more than 60 days past due on your mortgage?

        *Do you own a home?

        Are you currently working?

        By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

      • A Joint Chapter 7 Bankruptcy Filing

        A Joint Chapter 7 Bankruptcy Filing

        Joint Bankruptcy or Joint Chapter 7 Bankruptcy is the filing opted by married couples who face surplus debts and seek options to have them discharged as they have challenges of paying them. Let’s first understand how the filing of Joint Bankruptcy works –

        • A single set of bankruptcy papers are filed on behalf of the married couple (though there are two individuals involved)
        • All property information, debts, income to the family and expenses are submitted to the court
        • Debts can be those that are jointly owned or can be the ones that an individual owes to other
        • Details of the debts that are expected to be discharged have to be provided in the petition – debts that can be allowed to be discharged as per Chapter 7 are considered in the joint petition
        • For discharging of debts, the assets are usually cannibalized – it is normally not possible to protect every asset. Hence it is important to understand the risks involved in jointly filing for bankruptcy especially when you own properties with your spouse
        • If the joint petitioners are from the Texas region, they can review the Federal and State Bankruptcy exemptions in order to protect their properties against liquidation in cases of filing a bankruptcy. One motor vehicle per licensed family member, 100-200 acres of property in the country or 10 acres in a city are some of the state level exemptions in Texas. Reviewing these with the bank attorney prior to filing the joint petition is a wise move

        Now that we know how the filing process works, let’s also assess the advantages to opting for a joint bankruptcy filing.

        • As filing for bankruptcy is an expensive ordeal, do it jointly is definitely going to cost you less. It will save couples from paying double the filing fees and paying your attorney twice the amount
        • Most of the dischargeable debts are appropriately taken care of and eliminated in the joint bankruptcy filing
        • The efficiency of completing the bankruptcy case is better when filed jointly – you save time by handling all of the tasks at a single phase/ time

        However, there are some disadvantages to this process –

        • All of the assets that are individually owned or jointly owned are disclosed during the filing procedure. This can also end up in liquidating valuable or viable properties by the trustee handling your case – at times the partner who owns more properties end up losing more of it
        • The couple ends up in owing too much of priority debt. As per the clauses of Chapter 7, there are certain kinds of debts that cannot be discharged – taxes, mortgages and child support are some of this kind. In cases of these, the repayment in full of these debts also needs to be done jointly as per Chapter 13. In such situations, the partner who owes the debt can file the bankruptcy individually

        Are you perplexed of whether to opt for a joint fling or not? A renowned law firm and the experienced attorneys will help determine your case and advise the course of action as needed. Seeking the assistance of such firms like the Recovery Law Group can put you in better positions of handling your bankruptcy scenario and also retain some of your prized assets by saving them from liquidation.


          *Are you more than 60 days past due on your mortgage?

          *Do you own a home?

          Are you currently working?

          By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

        • Federal Bankruptcy Exemptions Details

          Federal Bankruptcy Exemptions Details

          It is not necessary that you lose all your property when you file for bankruptcy. While filing for bankruptcy, it is therefore important that you are aware of the exemptions allowed by the state as well as federal government under various chapters. This is important to salvage as much of your assets as you can. You should know the details to choose the best exemption to save your property. Some states offer you a choice between state and federal bankruptcy exemption, however Sacramento requires you to choose the state exemption only. In case you reside in any other state, you can use the federal bankruptcy exemptions to protect your property. It is important to know that federal bankruptcy exemption amounts vary every 3 years.
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        • Know More About Chapter 7 Bankruptcy Exemptions

          Know More About Chapter 7 Bankruptcy Exemptions

          Bad financial decisions may lead to economic problems. Filing for bankruptcy under Chapter 7 may provide you relief from your debt collectors. However, in the process you might end up losing some of your property. However, all is not lost as people who file for bankruptcy under chapter 7 are allowed to keep certain full exempt property. Exempt property is protected from creditor’s claims by the law. Some states like Colorado allow property to be exempt only under state law. Exempted property includes a portion of or the entire unpaid wages, household furniture, personal effects and home equity.
          In case you have incurred medical or credit card bills or taken personal loans which you find yourself unable to repay, there is no need to worry. You can file for chapter 7 or “liquidation bankruptcy”, which is one of the simplest and quickest way to take care of such issues as per Los Angeles based law firm Recovery Law Group.
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        • Bankruptcy Exemptions: An Overview

          Bankruptcy Exemptions: An Overview

          Filing for bankruptcy is a last resort for many people struggling immensely with financial issues and non-payment of dues. In this trying time, bankruptcy exemptions play a massive role in both chapter 7 & chapter 13 bankruptcy. While exemptions in chapter 7 bankruptcy help determine how much property can you keep, those in chapter 13 are used to keep your repayment plan payments low. Before delving deeper, it is important to know about bankruptcy exemptions. (more…)