Legal Question in Bankruptcy in Texas

homestead exemption

If file for bankruptcy in Texas and have a home that is homesteaded and worth approximately $165K-$170K with a mortgage balance of $121k, would that property return to the mortgage company or is there a way to keep it? What about furnishings, computers, etc?


Asked on 4/12/00, 3:40 pm

1 Answer from Attorneys
Neil Ackerman Ackerman & Gallipoli, LLC

Re: homestead exemption

Hi.

I'm from NY, but as I understand Tx homestead exemption, you can keep all equity from bankruptcy estate.

However, this does not mean you will keep house. In order to keep house, you must BE and REMAIN current on your mortgage payments. You still will probably have to sign reaffirmation agreement, even if you do this, to keep house, if your mortgagee's attorney knows what he/she is doing (as "iopos facto clauses" in bankruptcy, which your attorney will explain to you, only run to protect estate, not you.)

If you are behind in paying mortgage and want to keep house, talk to your attorney about doing a 13!

If you are (and remain)current with your mortgagee and can keep house without signing reaffirmation agreement, count yourself as lucky! Never volunteer to sign one; let them come to you.

Good luck!

Neil Ackerman 516-288-8245

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Answered on 4/23/00, 8:34 pm


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