Bankruptcy Exemptions in Dallas

Many believe they will lose everything if they file for Chapter 7 or Chapter 13 bankruptcy. However, you should know that this is nothing more than a common misconception. In Dallas, debtors can use either state or federal bankruptcy exemptions to protect their property—up to a certain dollar amount.

While all states have their own exemption laws, if you file for bankruptcy in Texas, you have the option to use either state or federal property exemptions. You cannot use both, which is why it would be wise to discuss your options with a bankruptcy attorney at Allmand Law Firm, PLLC before moving forward with your bankruptcy case.

To learn more about your options, call us for a free bankruptcy consultation!

Dallas bankruptcy exemptions are also liberal regarding cars and trucks. The Texas Motor Vehicle Exemption law allows you to exempt the entire value of one motor vehicle per licensed household member. Additionally, if an unlicensed person relies on someone else to operate a vehicle, that vehicle may be exempted.

It can be difficult to determine how many motor vehicle exemptions state law allows you. At Allmand Law Firm, PLLC, we will review your situation and help you obtain the maximum number of exemptions under the law.

Texas exemption laws allow you to exempt the entire value of one motor vehicle per licensed household member, as well as up to $100,000 in personal property per family or up to $50,000 if you are a single adult. For example, if you and your spouse file bankruptcy and have $150,000 in personal property, only $100,000 of that property will be exempt. The other $50,000 will have to be handled through the bankruptcy, which may mean liquidation to pay debts. A skilled bankruptcy lawyer can review your property in Dallas and help you retain as much of it as possible through bankruptcy exemptions.

Personal property may include the following:

• Up to two firearms
• Home furnishings
• Jewelry (up to $25,000)
• Clothing and food
• Health savings accounts
• Sporting equipment
• Family heirlooms
• Bibles and other sacred or religious texts
• Animals, including pets and domestic (with limits on livestock)
• Burial plots
• Health aides

It is also important to note that both Texas and federal bankruptcy exemptions can be doubled if you and your spouse file jointly. You would each be entitled to your own exemptions, making it possible for you to protect double the amount of property.

Some benefits through insurance companies offer you monetary payments or accumulation. Those benefits may be exempt under Texas or federal law. In many cases, it is necessary to report these assets in your bankruptcy. However, a Dallas attorney can help you seek bankruptcy exemptions of your insurance policies and benefits.

Texas laws allow for the following to be exempt:

• Fraternal benefits through societies such as Freemasons, Knights of Columbus, Elks, etc.
• Life, health, accident, or annuity benefits that you are due to or have already paid to beneficiaries or insureds
• Uniform group insurance for Texas employees
• Group insurance for Texas public school employees
• Benefits of employees of Texas state colleges and universities

If you are an insured person or beneficiary of a policy that has paid out any amount, then you may wonder if that amount is exempt from your bankruptcy. The answers to these legal questions can be complex and also depend on the status of the insured and the policy itself. A knowledgeable bankruptcy attorney with extensive experience handling these matters can answer your questions.

If you have recently obtained a lawsuit verdict in your favor or a settlement from a legal claim, that amount is not likely to be exempt under state or federal law. Further, any pending claim may also be considered when you file for bankruptcy. You would disclose this information in bankruptcy paperwork when you submit initial filings. However, you may have options to seek bankruptcy exemptions of financial legal claim proceeds.

Federal law allows a “wildcard exemption,” explained below. You can use this for any personal property up to a certain amount. If your legal claim proceeds are larger than the wildcard exemption allows, you may be able to transfer that money to a trustee or another beneficiary. Allmand Law Firm, PLLC in Dallas can make sure you get the maximum amount of bankruptcy exemptions while fully complying with the law.

If you have significant equity in your home or a large amount of personal property in Dallas, state exemptions may be the right choice for you. Texas law offers generous exemptions for your home, motor vehicles, and personal property; however, one advantage of choosing federal exemptions is that you can benefit from a “wildcard exemption.”

You can apply a wildcard exemption to any property that you own. With this, you could exempt up to $1,225 plus any amount left over from the homestead exemption, up to $11,500. If you do not claim your full homestead exemption under federal law, you would have up to $12,725 that you could apply to any of your property.

Although you may be dealing with difficult financial matters, you are likely concerned about retaining the belongings that you worked hard to obtain. Your home, car, and other personal property may be exempt from asset consideration in a bankruptcy. In order to find out more about bankruptcy exemptions in Dallas, call Allmand Law Firm, PLLC today.

Find out which type of bankruptcy exemptions would most benefit you by speaking to our bankruptcy lawyers. Call our office today to get started!

Recommended Reading

• Texas Bankruptcy Exemptions
• Bankruptcy Exemptions: Understanding Their Role Before You File
• What You May Not Know About Bankruptcy Exemptions