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Liens and Exemptions
If a creditor has a valid lien on any
property (even if the property is exempt), to keep that property, you must be current with
the creditor and continue making your regularly scheduled payments to the creditor.
In a Chapter 13 Bankruptcy there are some possible exceptions to this requirement.
These exceptions are too detailed to explain on this web page, but we would be glad
to discuss them with you when you come in. There may be some situations in a
Bankruptcy case where a creditor has a non-purchase money lien on property which can be
avoided.
Texas Exemption Laws
Here is some general information about
Texas Exemption Laws:
 | Under Texas State Exemption laws,
you're allowed to keep you home as long as the property it sits on meets the following
criteria:
| |
Married |
Single |
| Urban |
10 acres or less |
10 acres or less |
| Rural |
200 acres or less |
100 acres or less |
You'll have to keep making your
monthly payments on your home if you wish to keep it.
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| Under Texas law, you're allowed to
keep some personal property. The following table shows the amounts you may keep:
| |
Married |
Single |
| Jewelry |
$15,000.00 |
$7,500.00 |
| Personal Property |
$60,000.00 |
$30,000.00 |
| Jewelry is included in the personal
property amount. |
Personal Property includes but is not limited to the following:
 | Vehicles |
| Furniture |
| Jewelry |
| Computer |
Also, as to vehicles, you can keep only
one vehicle for each member of your family holding a driver's license.
Items used in your trade or professsion are also included in the
Personal Property amount. These items include:
| Tools |
| Equipment |
| Books |
| Apparatus |
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| Texas Exemptions allow you to claim any life insurance policy at its
present value as exempt; however, a member of your family must be a beneficiary of the
policy. Life insurance is not limited by the $30,000 or $60,000 personalty limitation.
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| All retirement plans qualified under the IRS Code are exempt. This
includes, but is not limited to,
However, if your retirement funds are in IRAs, you must not have
exceeded the yearly maximum deposits. Qualified retirement plans are not limited by the
$30,000 or $60,000 personalty limitation.
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| Under Texas Laws, your wages are exempt. |
Federal Exemption Laws
Here is some information on Federal
Exemption Laws.
| If you're married and you don't have a homestead, you can keep up to
$20,450 in cash or cash equivalents, such as stocks and bonds. |
| Under Federal Exemption Laws, vehicles, tools of the trade,
retirement, life insurance, are all allowed - with substantial variance from Texas State
Exemptions as to value limitations and some variance as to item categories. |
| You may choose whether you wish to claim Federal or Texas exemptions.
To help you decide, an attorney from our office will meet with you in person to help you
select the set of exemption laws best for you.
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As with any of the other
information provided in this website, this information is for general
information purposes only. The information on this site is NOT legal advice, nor
is any part of it provided in the course of an attorney-client relationship.
March 27, 2000
Copyright © 2006 Merv Waage |
