Chapter 7 Bankruptcy Lawyer Garland, TX
If you have questions about protecting your property while seeking debt relief through the bankruptcy process, don’t hesitate to connect with an experienced Chapter 7 bankruptcy lawyer Garland, TX residents trust. Although the Chapter 7 bankruptcy process is fairly straightforward, some property issues can get a little tricky to navigate. Thankfully, our experienced team can help.
If you’re thinking about filing for Chapter 7 bankruptcy, you may have concerns about the fact that this process is commonly referred to as “liquidation bankruptcy.” While it’s true that the trustee assigned to your Chapter 7 bankruptcy case will be empowered to sell your non-exempt property and assets, this is no reason to panic. Chapter 7 bankruptcy is only available to those who don’t earn much income. Because Texas exemptions are famously generous, most Chapter 7 filers in Texas are permitted to keep all or most of their personal property, real estate, and financial assets. With that said, every filer’s situation is unique. Therefore, it’s generally a good idea to avoid making assumptions about which property you can successfully exempt (and property that may be classified as non-exempt) until you speak with an experienced Garland, TX Chapter 7 bankruptcy lawyer.
Cars and Chapter 7 Bankruptcy – The Basics
One of the most common questions that Chapter 7 filers ask is, “How will the bankruptcy process affect my car?” This is a great question. In Texas, filers who have resided in the state for a minimum of 2 years are permitted to claim either federal exemptions or Texas exemptions. Federal exemption law allows individual filers to protect up to $4,000 in equity in a single motor vehicle (this exemption amount doubles if you’re married and filing jointly). However, if you choose to file Texas exemptions instead of federal ones, you’re permitted to exempt the value of one car per licensed member of your household. Say that you, your spouse (filing jointly), and your oldest child are all licensed to drive. If you file federal exemptions, you can only exempt $8,000 equity value in one car. If you choose Texas exemptions, you can protect the value of three vehicles, period.
Note that if you don’t want to keep paying your car loan, you may be able to return the vehicle to your creditor and cancel your remaining loan debt via the Chapter 7 bankruptcy process as well.
Legal Assistance Is Available
If you have concerns about protecting your property during the Chapter 7 bankruptcy process, know that you don’t have to grapple with these stresses alone. The experienced Texas legal team at The Allmand Law Firm, PLLC will work hard to ensure that you’re able to take advantage of every exemption that applies to your situation. We’ll also help you navigate potentially tricky asset protection issues, including car ownership. Please don’t wait. Schedule a risk-free, confidential consultation with our Garland, TX Chapter 7 bankruptcy lawyer team today; we look forward to speaking with you.