SUED FOR DEBT? THESE 5 ASSETS ARE PROTECTED IN TEXAS
Texas has placed protections against creditors for married couples and families with minor children in our law. The protections are both by statute and in our Constitution. First, certain types of property are given a special status as “exempt” from creditor claims. Except for claims asserted by the Federal government, property taxes, “Repair liens”, or secured liens, exempt assets cannot be taken by a creditor. Secured liens involve the purchase of the asset being financed by the creditor and require the correct paperwork be signed as part of the purchase to permit the creditor to seize the asset or foreclose
WHAT ASSETS CAN BE PROTECTED?
1. YOUR CAR
Texas protects one vehicle for each family member who can drive.
2. YOUR HOME
Texas law offers broad protection to your homestead. You can protect up to 10 acres inside town and up to 100 acres outside of town.
3. THE STUFF IN YOUR HOME
The normal contents of the home are protected. This can include furniture, dishes, furnishings, clothing, and food. Electronic gadgets such as TVs, radios, etc are not protected.
4. YOUR SAVINGS FOR RETIREMENT
Your IRA is protected, but this is not true for inherited IRAs for many people who do not live in Texas. We are special.
5. YOUR WEDDING RING
Actually, you can protect personal jewelry worth up to 25% of your exemption amount. An individual can protect up to $30,000.00. A family can protect up to $60,000.00.
WANT TO KNOW MORE?
The list of most protected assets is found in our Property Code. There are also protections found for current wages, insurance policies and other assets in other parts of our law.
This is not a complete list and should not be considered legal advice. A detailed examination of the assets owned, the debts owed and other factors should be done in each estate in order to determine the best solution in each case.