Legal Question in Credit and Debt Law in Texas

Protecting My Homestead

We owe several credit card balances, and all are in collections, two have served us and we've responded to the citations. No judgements/liens at this time. Can we move our homestead into a land trust to protect it from the liens/judgements? How does this affect our homestead exemption? Can we still deduct interest/taxes on personal tax returns? We have about $50,000 equity in home. We are in a settlement program, but some collection/creditors are not patient enough as we save money to settle. We've already settled 2 and are about to settle another.

Thank you.


Asked on 4/15/04, 5:25 pm

1 Answer from Attorneys
Sharon Campbell Sharon K. Campbell

Re: Protecting My Homestead

Your homestead is exempt from creditors in Texas. No need to transfer it. In fact, by transferring it, you may lose the homestead exemption.Continue to handle the deductions the way you always have. Pending lawsuits or even judgments do not affect that.

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Answered on 4/15/04, 5:51 pm


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