Legal Question in Bankruptcy in Texas

Do I get to keep my money in my checking account

I am considering Chapter 7 bankruptcy, it will be a joint filing with my wife. All the monies we recieve come from Social Security Dissability. It is direct deposit to our checking account. Is there a limit as to how much mony we can have there when I file? I am not talking a lot of mony but we do keep between $1500 and $2000 in the account when we can to pay medical bills. I would be filing for past medical bills that I understand that would be discharged and some credit card debt. But we need to keep funds in our account to pay for medicene which runs nearly $7000 a year. Are we alowed to keep this mony in our account or will we loose it


Asked on 4/16/02, 5:15 pm

1 Answer from Attorneys
Andrew Nichols Law Office of Andrew B. Nichols

Re: Do I get to keep my money in my checking account

Short answer -- you should most likely be able to keep this money.

You are entitled to exempt (keep in spite of your debts) certain personal property. In Texas you are able to pick which set of exemption laws/rules to apply in your case. This will involve some strategy and a good lawyer will be able to use the best set of laws to help you exempt (keep) the most property. The real test will be whether or not you own a home and how much equity you have in the home. The reason this is the case is because the Texas exemptions allow for unlimited home value and the federal exemptions limit the amount you can exempt. The federal exemptions would let you exempt all of your checking account without any problem. The Texas exemptions would pose more problems in terms of exempting the checking accounts. I hope this answer has not confused you. Please feel free to call me directly to discuss your situation in greater detail. ph. (972) 231-5500 or (800) 303-0720

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Answered on 4/16/02, 7:18 pm


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