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how much cash can you keep when filing chapter 7 in texas
Hi Niah, I have a question about bankruptcy in Texas. Specifically, on how much cash I can keep when filing under Chapter 7?
Sure. When you file for Chapter 7 bankruptcy in Texas, you may qualify for certain exemptions. These exemptions protect a portion of your property from the bankruptcy process, which might include some amount of cash. The exact amount can vary depending on your specific circumstances and the applicable laws.
That makes sense. Do you have a rough estimate or a range of how much cash could be exempted?
Unfortunately, Texas does not have a specific cash exemption for Chapter 7 bankruptcy. However, it does offer a so-called wildcard exemption which can be used on any property, including cash. The amount of wildcard exemption is up to $50,000 for a single person and $100,000 for a family.
What if I have more cash than the wildcard exemption allows, will I lose the excess?
If you have more cash than the wildcard exemption allows, the bankruptcy trustee could take the excess to pay off your creditors. However, this can also depend on many factors, including your other assets and the specifics of your bankruptcy case. It's advisable to consult with a bankruptcy attorney to best understand how these rules may apply to your situation.
I see. Thank you for the information, Niah.
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