|
The State of Texas is unique among all states in the country. In a
few circles, the state is known as a debtor's haven because of extensive
protection of debtor rights in a wide assortment of legal disputes. At
first glance, the Texas Constitution does not limit the amount of a
homestead exemption, but this provision was recently preempted by
federal law and is now limited to about $125,000 in home equity. Also,
Texas does not allow wage garnishment so that current salaries may not
be touched even though a creditor holds a valid court judgment.
The Texas bankruptcy form must specifically contain legal
descriptions and an associated statutory authority for claiming Texas
bankruptcy exemptions. Also, when filing bankruptcy in Texas under
Chapter 7, Texas bankruptcy law requires all creditors receive notice of
filing and have access to records on file at the clerks office. Texas bankruptcies
are public record events, and anyone may review schedules and forms
filed without cost.
See also: Texas Homestead Exemption.
|
