Filing for Bankruptcy Does NOT Mean You Lose Everything
One of the most common concerns among people considering filing for bankruptcy is if they will lose all of their property. What many people do not realize is that there are state and federal property exemptions that enable debtors to keep most — if not all — of their property, when used correctly.
Houston Chapter 7 bankruptcy attorney Liza A. Greene offers more than three decades of experience in helping clients obtain a fresh start through filing for bankruptcy. She has comprehensive knowledge of bankruptcy laws and is recognized as Board Certified in Consumer Bankruptcy Law by the Texas Board of Legal Specialization.* Liza Greene offers experienced and tactical advice to help clients save their property and experience debt relief. Contact her law office to arrange a consultation.
Keeping Your Property in a Chapter 7 Bankruptcy
In a Chapter 7 bankruptcy, a bankruptcy trustee may liquidate or sell some of the debtor's assets in order to pay some of the debts. However, if property is claimed as exempt, it cannot be sold or liquidated by the bankruptcy trustee.
In Texas, debtors have the option of taking advantage of a set of federal bankruptcy exemptions or state bankruptcy exemptions. Depending on the property exemptions used, you may be capable of protecting a certain amount of property such as:
- Equity in your home
- Personal property such as firearms or family heirlooms
- Vehicles, within certain limitations
- Work-related tools or equipment
- Life insurance benefits
- Pensions and ERISA-qualified retirement funds
- Government benefits
- Unpaid wages
- Other assets
Attorney Liza A. Greene can thoroughly assess your situation to determine which set of bankruptcy exemptions is more advantageous in your case.
Keeping Your Property in a Chapter 13 Bankruptcy
Chapter 13 bankruptcy is unique from Chapter 7. While debt is discharged and some property may be liquidated in a Chapter 7 bankruptcy, Chapter 13 bankruptcy is governed by different rules. Property is NOT liquidated in a Chapter 13 bankruptcy. Also, instead of discharging 100 percent of unsecured debt, debts are consolidated into a manageable three- to five-year repayment plan. Therefore, in a Chapter 13 bankruptcy, there are not any concerns about saving your property from liquidation.
However, if you are facing foreclosure of your home or repossession of your vehicle, it is important to evaluate whether you can manage the monthly payment. Although delinquent payments and penalties are rolled into the repayment plan, your regular monthly mortgage payment will still need to be paid in order to keep the property.
Contact Houston Attorney Liza A. Greene to Discuss Property Exemptions
Many people make the mistake of liquidating their own property — property that could have been saved in bankruptcy — in order to pay off their debts. Unfortunately, many of these people still end up filing for bankruptcy. It is important to understand that Texas offers considerable protection for debtors facing bankruptcy. Learn more about your options in a consultation with Houston bankruptcy attorney Liza A. Greene. For experienced advice, honest answers and compassionate legal service, contact her today to arrange an initial consultation.
Liza A. Greene
Myres & Associates, PLLC
1717 St. James Place
Suite 450
Houston, Texas 77056
Telephone (713) 622-1600
Fax (713) 622-1610
E-mail
