Debtor Rights in Texas

Texas was once known as a debtor's haven because of unlimited homestead exemption value. As of October 17, 2005, Texas residents in bankruptcy can no longer claim the state authorized exemption value. Instead, federal preemption limits value to a national standard. Oddly, states requiring below average exemption values are unaffected by the amendment, and may still limit debtors to poverty level home value. Most other debtor rights in Texas remain largely unaffected by recent federal reform. Also know that debtor rights in Texas constantly evolve, and in recent years, tend to decrease in lock step with growing state conservatism.

Consumer bankruptcy specialists are known for liberal use of legal assistance and paralegals. Legal assistants and paralegals may only assist lawyers when providing legal advice. They may not practice law or represent individuals in court. Legal assistants and paralegals generally provide a valuable service and reduces attorney fees, costs, and expenses by performing legal tasks for an attorney who remains responsible for all work product produced. As professionals, all states require attorneys to pass a state bar examination, and as a condition of remaining in good standing, must insure all work performed by paralegals achieves the same quality result as would be produced by an attorney.

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