Chapter 7 Bankruptcy Lawyers - Nick Davis Law

Yes, Texas allows you to protect essential household items like furniture, appliances, and electronics under the “Personal Property Exemption.” This exemption covers a wide range of items up to a certain dollar value, depending on whether you’re filing as a single person or jointly with a spouse. However, high-end or luxury items may exceed the exemption limit and could be at risk. We’ll help you list your belongings carefully to maximize the protection of your household goods.

Texas has specific exemptions that allow you to protect two firearms, regardless of their value. This means if you own firearms within this limit, you can keep them. However, if you own a collection of firearms or particularly valuable ones, some may fall outside the exemption and could be liquidated to pay creditors. Discussing your assets with your attorney will ensure you get the maximum protection.

While family heirlooms hold immense sentimental value, Texas bankruptcy law views them as personal property subject to exemption limits. If these items are particularly valuable—such as antique furniture, art, or valuable jewelry—they may exceed the exemption cap. However, we’ll work to protect as many of these items as possible within the law. In some cases, it might be worth discussing other asset protection strategies.

Texas provides an exemption for “tools of the trade,” which includes equipment, tools, books, and vehicles that you use for your profession. You can protect up to $100,000 in personal property if you’re the head of a household, which includes these tools. If you rely on these items for your job—whether you’re a contractor, hairstylist, or mechanic—this exemption can help ensure you keep the equipment essential for earning a living.

Unfortunately, rental properties are not covered by the Texas Homestead Exemption. If you own additional real estate, such as a rental or vacation home, this property could be considered non-exempt and may be sold by the bankruptcy trustee to pay off creditors. However, depending on the equity in the property and your overall situation, we can explore options like negotiating with creditors or considering Chapter 13 instead, which may offer more protection for additional properties.

Yes, Texas law provides strong protection for life insurance policies in Chapter 7 bankruptcy. If the policy has a designated beneficiary (other than yourself or your estate), the cash value of whole life policies is generally exempt. This means the funds intended for your loved ones remain protected. If you have concerns about term life or whole life policies, we’ll help you assess the coverage and determine if it falls within the exemption limits.

In Texas, savings and checking accounts do not receive automatic protection under bankruptcy exemptions. Any funds in your bank accounts on the day you file for Chapter 7 may be at risk of being seized to pay creditors. To mitigate this, careful planning and timing of your bankruptcy filing can help safeguard your essential funds. We’ll work closely with you to review your accounts and protect as much of your cash as possible.

If you’re a business owner, some of your business assets may be at risk in Chapter 7. Texas law allows exemptions for “tools of the trade,” which can include business equipment, but this is limited to personal use. Larger business assets like real estate, inventory, or vehicles may not be exempt and could be liquidated to repay creditors. If keeping your business intact is a priority, we can discuss alternatives like Chapter 11 or Chapter 13, which may offer better asset protection for business owners.

f you’re not ready to file for bankruptcy but want to protect your assets from creditor lawsuits, there are legal strategies that can help. For instance, Texas law offers strong protections for homesteads and retirement accounts, even outside of bankruptcy. You may also be able to shield certain assets through trusts or by strategically transferring ownership—though it’s crucial to avoid fraudulent transfers, which could backfire. We can guide you through legitimate asset protection strategies tailored to your financial situation.

Yes, Texas allows you to exempt one vehicle per licensed household member, but there’s a catch if your car is fully paid off. While you can protect the vehicle under the personal property exemption, if its value exceeds the exemption limit, any equity beyond that could be at risk of being used to pay off creditors. For most people, this won’t be an issue, but if you own a high-value car or a luxury vehicle, we’ll work together to evaluate your options and find the best strategy to protect your vehicle.