By: Julie Koenig
In Texas you are allowed to choose either the Texas Exemptions or the Federal Exemptions - whichever suits your particular needs the best. However, to qualify in Texas you must have lived in Texas for the previous 730 days - 2 years. If you did not live in Texas for the 730 days prior to filing, you have to use the exemptions allowed in the prior state in which you lived, with some exceptions. At your initial consultation, Julie Koenig will determine the exact exemptions to which you are entitled.
Assuming that you have lived in Texas for the prior 730 days, the value of your homestead, if any, will dictate whether we use the Texas or Federal Exemptions. If you are single and the equity in your home is less than $25,150.00 or if you are married and the equity is less than $50,300.00, you qualify for the Federal Exemptions. Obviously, if you don’t have a home, you qualify for the Federal Exemptions.
Your exemptions become allowed 30 days after the concluded 341 or creditor’s meeting. This means, unless someone objects to the exemptions, your real and/or personal property as listed on Schedules A & B essentially leave the bankruptcy estate and you get to keep them.
Under the Federal Exemptions you are allowed:
You also have what is called a "wild card' exemption that allows you to exceed these limits. The 'wild card' is $1,325.00 plus up to $12,575.00 that you did not use to exempt a homestead, per person. This 'wild card" allows you to exempt cash, equity in another piece of real property, extra equity in vehicles, potentially a business, and other normally non-exempt assets.
Of course, your right to social security payments, disability or unemployment benefits, and/or veteran's benefits is completely exempt.
Your right to receive alimony, support or separate maintenance is exempt to the extent it is reasonably necessary for your support and your dependant's support.
Your right to retain a retirement plan that is an IRS qualified retirement plan is also exempt to the extent it is reasonably necessary for your support and your dependant's support.
Other Federal Exemptions are also available and will be discussed to suit your specific needs.
Under the Texas Exemptions you are allowed:
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