Afraid of Texas bankruptcy? It’s understandable: bankruptcy is a life changing decision. If you’re unsure of how state laws differ, this blog guide gives a head start on understanding Texas bankruptcy laws. We’ll be going over 6 important bankruptcy laws unique to Texas and how you benefit from them.

Exemptions
Texas exemption laws depend on the value of your personal property. Single individuals can have property up to a value of $30,000. If you have a family, your exemption can be as high as $60,000. Texas laws mean the lien on your home, the rights a lender has on the property, are exclusive of these amounts, giving you the advantage. You also get exemptions on other assets, including cars, wages, home furnishings, foods, and much more.

Employment
If you are self employed, your wages are not exempt. But if you work for someone else, all your wages are exempt. If you’re self employed, 25% of your wages goes toward the cap. The cap depends on your income. These laws can be quite complex, and you may consider consulting with a financial consultant if you are self employed.

Your Income

Texas bankruptcy law protects your income from garnishment. Your wages cannot be taken from your employer during the bankruptcy. However, once you get paid, that money can be part of your bankruptcy. The law only protects the check from being taken via garnishment, which is powerful in and of itself.

Medical and Insurance

Any health aids you have are completely exempt, as is life insurance. Creditors cannot take money you have in a life insurance policy nor any medicine or device of any value intended to help you, your spouse, or your dependents.

Military
If you are in the military, you have some other exemptions. If the court decides your debt is in any way the result of your service, you can get property exemption for as long as you are in the military.

In order to best understand how Texas bankruptcy exemptions work, consulting with some local financial experts and a Texas bankruptcy attorney is advised. Texas is very unique in some of its exemptions, designed to protect home owners, individuals, and families from creditors. However, they only go so far. If you fear spiraling debt, foreclosure, or the loss of major assets, you should consult with a Texas attorney.

What do you look for in a lawyer? It does depend on price, but experience is more important. You want someone knowledgeable on Texas bankruptcy laws who can help you make decisions, protect assets, and protect your wages. There are some highly experienced Texas bankruptcy attorney’s across the state, but try to get one in your area.