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A general method for determining equity is to analyze the market value (the sale price of the property less the costs of selling the property) and then subtract any mortgages or liens against the property. This number is the total equity in the home the filer will have to consider in their bankruptcy case. Recently, a large part of the United States population has seen a drastic reduction in the equity of their homes which has lead to an increase in bankruptcy filings.

Bankruptcy laws are developed at the federal level, but certain exemptions may also exist at the state level. States may choose to use the federal or state exemptions and the amount of home equity which is protected may vary. In Texas, filers have the choice to use federal exemption statutes or Texas state exemptions, and the amount of the exemption limit is based on the amount of equity the filer has in their property. If you are considering bankruptcy and you have equity in a home, it is important to discuss the state and federal homestead exemptions with a qualified bankruptcy lawyer.

More Help on Equity

  • Exemptions - Bankruptcy exemptions are a list of all the assets, personal items and goods that can not be liquidated in Chapter 7 Bankruptcy or sold in Chapter 13 Bankruptcy to repay creditors. - read more

  • Lien - A Lien puts a hold on real or personal property and allows the property to be held as collateral for debt payments or services which are owed to another lender. - read more

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A lawyer will be committed to getting you debt relief and providing you with valuable information, services and advice to get you a better financial future. There are many convenient locations to make filing bankruptcy or learning about the alternatives we offer, even easier.

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