Chapter 7 Bankruptcy: I haven’t lived in Texas for 2 years
When a Debtor is preparing to file for a Chapter 7 bankruptcy, it is important to know if they have lived in the state of Texas for the last two years. The significance of this determines if the bankruptcy attorney is able to use federal exemptions or if they have to use state exemptions from the previous state they lived in. For example, the state of California does not recognize federal exemptions and a Chapter 7 debtor is forced to use the California state exemptions. It may not be as bad as it sounds; however, recently a Chapter 7 debtor was ready to file her Chapter 7 bankruptcy. They had lived in California previously and hadn’t been in the state of Texas long enough. The California State exemptions were used in her bankruptcy case. She recently paid off both of their vehicles and in the State of California; you are only able to protect one car up to a value of $2,500.00. This caused them to file a Chapter 13 and have low payments to prevent them from having to lose their vehicles.
If you have any concerns about where you have lived in the last two years, consult your bankruptcy attorney to find out what your options are.
For further research you may visit the following site related to bankruptcy:
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