Exemptions in Other States
Exempt property is property that a debtor keeps whether he is sued or whether he files a bankruptcy. Exactly what property is exempt depends on what state he lives in.
Texas has the most liberal exemptions in the United States, including an unlimited homestead exemption. Texans can file a bankruptcy and keep their homestead no matter how much it is worth. So, people who wish to preserve assets sometimes choose to move to Texas and purchase homes. To see a discussion relating to the preservation of homes in Texas bankruptcies, click here
However, the Bankruptcy Code and other laws limit the ability of people to move to Texas for the purpose of filing a bankruptcy. This limitation normally takes the form of a waiting period from the time of the move to Texas to the time of filing the bankruptcy in Texas. The purpose of these laws is to make sure that only those people who indend to reside in Texas can take advantage of the Texas exemption laws when they file a bankruptcy.
These limitations cut both ways. They can significantly help people who are moving out of Texas. For instance, in one case a Texas resident moved to Tennessee, filed a bankruptcy in Texas and exempted a Tennessee homestead that was not exemptable under Tennessee law.
Our office is creative its bankruptcies, but every bankruptcy we file strictly conforms to existing law.