September 25, 2015
(Houston, Texas) – The Houston bankruptcy law firm of Busby & Associates, Attorneysand Counselors at Law, P.C. is excited to announce that the State of Texas increasedits personal property exemptions on September 1, 2015. The exemptions are used byresidents both in protecting assets in bankruptcy and from judgment creditors in thestate court lawsuits.
Texas already had generous personal property exemptions, but this recent increasemakes the state an even better place to live to protect assets. The Texas Legislature’sAct raised the amount a single adult can protect of the fair market value of personalproperty to $50,000. This is a $20,000 increase from the prior $30,000 amount. Afamily can now protect up to $100,000 of the fair market value of personal property.This is a $40,000 increase from the prior $60,000 exemption.
According to Eric Southward, Managing Attorney, this increase continues to reflect thedesire of the State of Texas and its Legislature to remain at the forefront of protectingits residents’ assets. By adjusting the amounts, Texas recognizes that over time, dueto inflation and many other factors, the value of its residents’ assets has continuouslygone up. As Mr. Southward points out, “Texas allows its residents to protect onevehicle per licensed driver and the legislature wanted to make sure that its residentsget to protect that one car. Cars don’t cost $10,000 brand new anymore.” Consideringthe average price of a new car is over $30,000 now, the increase allows the state tomake sure that its exemptions keep up with the real world value of assets.
The personal property exemptions are used by the residents of Texas to protect itemslike household furnishings, clothing, jewelry, electronics, toys, guns, vehicles andwork tools. These exemptions are used both in bankruptcy and in the execution ofjudgments from state courts. The goal of exemptions is to ensure that state residentshave the necessary things they need to continue with their lives. As Mr. Southwardmade clear, “Exemptions are not about protecting each and every asset a resident has.It is about a balance between what is reasonable and necessary for each resident tokeep and protect versus a creditor’s right to recover assets for debts owed.” Withthese increased exemptions, Texas has allowed its residents to protect a lot more.
Contact: Michael Busby - OwnerBusby & Associates, Attorneys and Counselors at Law, P.C.
2909 Hillcroft, Suite 350Houston, TX 77057(713) 974-1151
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