Bedford Asset Protection Attorneys
Helping You protect your assets without bankruptcy relief
Bankruptcy is a great resource as it allows individuals the chance to stop creditor harassment, get relief from their debts and (generally) keep all their assets. However, Bankruptcy may not always be an option. Sometimes Clients are not eligible for bankruptcy relief. For example, they may not be eligible for Chapter 7 relief because they have gotten a discharge in a case filed in the last 8 years. Other times Bankruptcy may not be a desirable option because Clients are at risk of losing assets to the Chapter 7 Trustee or the required payment for a Chapter 13 Case may be higher than the client can afford.
How Can I Protect My Assets in Bankruptcy?
An individual filing for bankruptcy in Texas can choose from one of two exemption plans, the Federal Plan or the Texas Plan. Note that a couple cannot “split” the must choose one or the other. In other words, a debtor has to choose Federal or Texas, they can’t choose some of each.
Texas Exemptions
Texas’ exemption allowances are fortunately generous. Texas exemptions protect assets such as:
- Your home, regardless of value, so long as it is your primary residence
- Your cars, regardless of value, so long as there is one car per driver in the home
- Up to 10 acres in an urban area
- Up to 100 acres in a rural area if single, 200 if it serves a family
- Up to $50,000 in personal property for a single person, or $100,000 for a family, of which no more than 25% may be jewelry
- Up to $30,000 in household items for singles, or $60,000 for families
- Income from Social Security, welfare, unemployment, or retirement benefits, spousal or child support
Many of our clients choose to follow Texas exemptions, especially if they are homeowners and own their own vehicle. It provides less restrictions based on the value of your assets.
Federal Exemptions
Federal exemptions offer less protection than Texas, though are a better choice for some filers. Federal exemptions protect assets such as:
- Up to $25,150 of equity in an owned property for individual filers, or $50,300 for families
- Up to $4,000 for your vehicle
- Up to $13,400 of household goods, clothing, leisure items, livestock, and crops, with no single item exceeding $625
- Up to $1,700 for jewelry
- $1,325 for Wildcard Exemption, with an additional $12,575 if you did not redeem homestead exemptions
- Lost earning payments, unemployment benefits, public assistance, Social Security, and more
A key differentiator in the federal plan is the “Wildcard Exemption” category. With this section, filers may choose to apply the money within the category either entirely on assets uncovered by predetermined exemptions or divvied up between categories to protect a larger wealth of property. It’s most popular among filers who do not own a home of their own.
Contact The Law Office of Mark B. French to protect your assets instead of filing for bankruptcy.
If you are not eligible for relief under Chapter 7 and Chapter 13 is not a feasible remedy, we can help you protect as much of your assets as possible. There are ways to structure your assets that will put them out of the reach of your creditors or at least make them much more difficult for your Creditors to seize. To be clear, bankruptcy is generally the preferable remedy if it is available. Even with the best asset protection plan you will still face collection activity, whereas with a bankruptcy discharge your creditors will have to leave you alone.
The Law Office of Mark B. French will listen to your goals and evaluate your assets to help you decide on the best approach to protecting the maximum amount of assets for your family.
Call our asset protection lawyers at The Law Office of Mark B. French to discuss your financial situation and strategize how to protect your assets: (817) 381-9855.
