What Assets Can You Keep if You File for Chapter 7 Bankruptcy?
When you file for Chapter 7 bankruptcy, the law allows you to keep certain assets through a system known as bankruptcy exemptions. These exemptions are designed to help you maintain basic living necessities while eliminating overwhelming debt.
Texas and Federal Bankruptcy Exemptions
In Texas, filers may choose between Texas state exemptions or federal bankruptcy exemptions. Each system protects different types and amounts of property, and there are strategic reasons to choose one over the other. An experienced bankruptcy attorney can help you determine which exemption system best protects your assets.
How Bankruptcy Exemptions Work
Bankruptcy exemptions protect specific categories of property from being taken by the bankruptcy trustee. Any asset that is not covered by an exemption is considered nonexempt property and may be sold to repay creditors.
Common Assets Often Protected
Bankruptcy exemptions are generally generous enough to allow most Chapter 7 filers to keep essential assets, such as:
A primary residence (homestead), within exemption limits
One or more vehicles, up to the allowed value
Household goods, furniture, and clothing
Retirement accounts and pensions
Tools of the trade needed for work
Protecting Your Property
The goal of Chapter 7 bankruptcy is to provide a fresh start—not to leave you without necessities. With proper planning and the correct use of exemptions, many people are able to keep their home, car, and other important assets.
Because exemption rules can be complex, consulting with a knowledgeable Texas bankruptcy attorney can help ensure your property is fully protected and your case proceeds smoothly.
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Austin Bankruptcy Lawyers
3800 North Lamar Blvd # 200
Austin, TX 78756