“Exempt” is a nice word that has an especially nice meaning when it comes to bankruptcy. If an asset is exempt, it cannot be sold to pay the moneylenders.
Texas has one of the broader homestead exemptions in the United States. The maximum value of your home is exempt, regardless of the actual dollar figure. The sale proceeds are also exempt for six months. If you have a significant amount of equity in your home, you may be better off using the Texas exemptions in your personal bankruptcy.
The Federal Homestead Exemption
On the other hand, if you have little equity or negative equity in your house, you may consider the federal exemptions. The homestead exemption is capped at $18,450. But you can apply as much as $9,250 of that amount to any other property, even cash or other nonexempt property.
Bankruptcy can be unfamiliar and confusing. Call the professionals at Henley and Henley, P.C. for your free consultation. We promise to make bankruptcy more familiar and less confusing.