There is one debt relief option that some Texas residents may not explore out of fear of losing their property. The myths surrounding Chapter 7 bankruptcy include a story that anyone who files will lose all of his or her property. Fortunately, this simply is not true. Depending on the circumstances, some property may be surrendered to pay creditors, but more than likely, most people's property will fall under one or more exemptions.
While bankruptcy is designed to provide filers with a clean slate and a fresh start, it does not mean that they must start over completely. Certain property will fall into several exemptions that allow it to be kept. For instance, the U.S. Bankruptcy Court does not intend to put people out of their homes if they wish to try to keep them by working out an agreement with the lender. As long as the value of a home does not exceed either the federal or Texas homestead exemption, it may be kept.