Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
In a Ch. 7 bankruptcy you would likely not be able to keep your properties and investment would be sold by the bankruptcy trustee and distributed to your various creditors. That is, of course, if the properties are not exempt and they have some value. In a Ch. 13, which is called the "wage earner" bankruptcy sometimes, you would likely be able to keep the properties, while paying off your debts according to a plan. In the case of the Ch. 7 the properties would most likely be sold as soon as allowed by the bankruptcy court. That would take quite a while to do that and sell the "homestead" I would assume. What else can I specifically answer for you?
By the way, here are the TX exemptions, in a bankruptcy:
Unlimited; property cannot exceed 10 acre in town, village, city or 100 acres (200 acres for families) elsewhere; sale proceeds exempt for 6 months after sale (need not occupy if not acquire another home, Property 41.003)
May file homestead declaration
Property 41.001, 41.002
Athletic and sporting equipment, including bicycles; 2 firearms; home furnishings, including family heirlooms; food; clothing; jewelry (not to exceed 25% of total exemption); 1 two-, three- or four wheeled motor vehicle per member of family or single adult who holds a driverís license (or who operates vehicle for someone else who does not have a license); 2 horses, mules or donkeys and a saddle, blanket and bridle for each; 12 head of cattle; 60 head of other types of livestock; 120 fowl; and pets to $30,000 total ($60,000 for head of family)
Property 42.001, 42.002
Property 42.001(b) (2)
Church benefit plan benefits
Fraternal benefit society benefits
Life, health, accident or annuity benefits or monies, including policy proceeds and cash values to be paid or rendered to beneficiary or insured
Life insurance present value if beneficiary is debtor or debtorís dependent (see note under personal property)
Retired public school employees group insurance
Texas employee uniform group insurance
Texas state college or university employee benefits
Property 42.002(a) (12)
Insurance 3.50-4(11) (a)
Insurance 3.50-3(9) (a)
Property of business partnership
County & district employees
ERISA-qualified government or church benefits, including Keoghs and IRAs
IRAs to extent tax-deferred
Keoghs to extent tax-deferred
Law enforcement officersí survivors
Retirement benefits to extent tax-deferred
Crime victimsí award
Hum. Res. 32.036
Hum. Res. 31.040
Tools of Trade
Farming or ranching vehicles and implements
Tools, equipment (includes boat & motor vehicles) & books
Property 42.002(a) (3)
Property 42.002(a) (4)
Earned but unpaid wages
Unpaid commissions to 75% (see personal property)
Property 42.001(b) (1)
Your answer states I would likely not be able to keep my properties then in the Texas Exemptions table you submitted it says my homesteaded property is exempted. Pardon my confusion but I'm assuming that the court would seize the LLC property and sell it while the homestead could still be held.
When the homesteaded property is eventually sold would the proceeds from that sale then be seized by the court at that later date?
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).