Keeping Your Assets & Qualifying for Chapters 7 or 13
Dripping Springs Attorney R. Brian Daniel
In Texas, a debtor can avail himself or herself either of the Texas state bankruptcy exemptions or the Federal exemptions when determining which assets can be retained and which ones may need to be sold or turned over to the Bankruptcy Court. Many of the specific state asset exemptions available to a Texas resident can be found in the Texas Property Code in sections 41.001 and 42.002 as well as in portions of the Texas Insurance/Labor/Education Codes, while the Federal exemptions may be found in Title 11 U.S.C., Section 522.
A debtor cannot mix and match the exemptions, but needs to choose one or the other, so consultation with an experiences Dripping Springs Bankruptcy Attorney is essential to determining which set of exemptions best suits your specific set of circumstances.
Under some recent amendments to the U.S. Bankruptcy Code (as set forth in more detail in the Bankruptcy Abuse and Consumer Protection Act of 2005), debtors cannot file a case under Chapter 7 if the earn more than the median income for a family of the same size in the same locality as set forth by the I.R.S. The figures used to determine qualification are derived from data collected by the U.S. Census Bureau.
Median Income Threshold:
The current median income that will dictate whether an individual may file for Chapter 7 protection, or whether they will be forced to choose Chapter 13, is as follows:
Household size 1: $41,225
Household size 2: $55,895
Household size 3: $60,503
Household size 4: $67,296*
* Add $8,100 to the $67,296 figure for each person in excess of four in the Debtor’s family unit.
Determining whether to file for bankruptcy protection and, if so, which Chapter best matches your current needs can be very complex. If you are considering bankruptcy due to unmanageable debt, you should talk to a qualified Dripping Springs Bankruptcy Attorney to find out which of your debts might be available for a discharge.
Contact a Dedicated Dripping Springs Bankruptcy Lawyer Today
An experienced Dripping Springs Bankruptcy Lawyer can also help you determine whether you are eligible to file for bankruptcy protection and, if so, which chapter best suits your specific set of circumstances. If you are considering bankruptcy protection, it is important to get solid legal advice before moving forward, so please reach out to The Daniel Law Firm. We take great pride in serving clients all over Central Texas. Let us discuss the best strategy for moving your Bankruptcy case forward in both a positive direction and timely manner. Contact an Dripping Springs Bankruptcy Attorney at The Daniel Law Firm today at (512) 615-3569.