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Guru_Guy
Guru_Guy, Attorney
Category: Bankruptcy Law
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Experience:  Years of experience providing advice on bankruptcy and other alternatives to debt problems.
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I am considering bankruptcy. I live in Texas. Can my

Resolved Question:

I am considering bankruptcy. I live in Texas. Can my bank accounts be attached?
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Guru_Guy replied 8 years ago.
Hello,

If you have assets available in bank accounts, that money would normally be made available to repay your debts. Also, certain property can also be given over to creditors. Texas law exempts your home and certain personal property, which you can keep in bankruptcy. You can find a list here:

http://www.bankruptcyinformation.com/TX_exemp.htm

You can also opt to use the federal exemptions:

http://www.bankruptcyinformation.com/exemp-fed.htm

But anything you have beyond the exemption amounts will be taken to satisfy creditors.

I hope this answers your question.


___________________

Please keep in mind that information in this forum is for informational purposes only. It is not legal advice and does not constitute creation of an attorney client relationship. Before acting on any such information, you are always advised to consult with an attorney licensed to practice in your jurisdiction who can take the time to review all the facts and laws relevant to your situation.
Customer: replied 8 years ago.
If I do not go the bankruptcy route and just ignore my debts, then can my accounts be attached or do the creditors have to secure a judgement first? My understanding about Texas law used to be that in Texas one's wages can not be garnished nor bank accounts attached. Also, I am a retired teacher who receives a pension.
Expert:  Guru_Guy replied 8 years ago.
Hello,

Texas law does not allow pension payments to be garnished even if there is a judgement. A creditor can go after bank accounts if it receives a judgement. But a court judgment would be required before seizure.

I hope this helps!


___________________

Please keep in mind that information in this forum is for informational purposes only. It is not legal advice and does not constitute creation of an attorney client relationship. Before acting on any such information, you are always advised to consult with an attorney licensed to practice in your jurisdiction who can take the time to review all the facts and laws relevant to your situation.
Guru_Guy and 4 other Bankruptcy Law Specialists are ready to help you
Customer: replied 8 years ago.
Reply to Guru_Guy's Post: Did you get my clarification response?
Expert:  Guru_Guy replied 8 years ago.
I see your one reply asking what would happen if you did not seek any bankruptcy protection. In such cases, certain assets, such as pension income, could not be garnished except in limited circumstances. But a savings account could be garnished once a judgment is granted.

I would not recommend simply ignoring the creditors. If you don't have sufficient assets to repay the debts, you might want to see if the creditors would be willing to resolve the debt for you paying back some reasonable percentage of it which you can afford.

One other thing to consider: if the creditor writes off your debt when you are not in bankruptcy, that forgiven debt can be taxed as income. If it is written off as part of a bankruptcy, it is not taxed.


___________________

Please keep in mind that information in this forum is for informational purposes only. It is not legal advice and does not constitute creation of an attorney client relationship. Before acting on any such information, you are always advised to consult with an attorney licensed to practice in your jurisdiction who can take the time to review all the facts and laws relevant to your situation.

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