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Homestead Laws for Texas
For years, Texas was known as a debtors haven because of the unique
allowance of unlimited value placed on homesteads, both urban lots, and
rural acreage. Homestead laws for Texas recently changes dramatically in
application in Bankruptcy Court. Primarily because of the insistence of
large commercial lenders, and the refusal of Texas law makers to agree,
the US Senate passed a highly controversial amendment which became law
effective as of October 17, 2008.
In bankruptcy practice - homestead laws for Texas
The Bankruptcy Abuse and prevention Act of 2008 limits all allowable
homestead exemptions to a specific dollar amount. This reform amendment
was specifically designed to disallow the Texas Constitutional guarantee
of unlimited homestead protection. Through preemption, with the
enthusiastic support of President Bush, all Texas residents may now lose
homestead protection and their homes if filing Chapter 7 or Chapter 13
because of 34% interest rates on credit card debts.
The Secretary of State for the State of Texas provides corporate information via telephone. This information includes the name, address and contact information for the corporate representative, as well as the date of original incorporation and whether the entity remains active. All bankruptcy cases require a list of creditors, and if the address included within the list of creditors is incorrect, and notice of filing is not delivered, subsequent actions taken by the Bankruptcy Court are ineffective against that creditor. Failure to provide notice is one of the damaging and easily preventable errors made by debtors.
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