Stupid Texas exemption question....

[CPO]

Greetings!

Please excuse me as I'm not thinking clearly this morning.....

Texas exemption tables list the jewelery exemption as 25% of the total exemption.

So, assuming I own (all paid for) a jewelry item that is worth, say $1,000.00.

I'm single, my total exemption is $30,000.00

25% of 30K is 7500. So, this jewelry item would be exempt, correct?

And any other jewerly items I might own are also exempt as long as the total did not exceed $7500.00. Correct?

Now, since the TOTAL exemption for a single person is $30.000.00, the value of the jewelry I might want to claim must be deducted from the total exemption amount I'm allowed under Texas law, correct?

So, $1,000.00 piece of jewerly deducted from the $30,000.00 total would mean I have $29,000.00 left in my personal property exemption.

Correct?

And so on for the rest of the exemptions...as long as I don't exceed the total value of the exemption, $30,000.00. Any personal property I own that is valued over and above the $30,000.00, the trustee is free to seize and sell...right?

And...the table list (2) firearms. I assume that if I owned a 3rd firearm, then the trustee would come and get it even if it was covered under the $30,000.00 total exemption, correct?

Please, somebody help an old disabled veteran out.

My head hurts.....

Thanks for your patience.

CPO

[SinkingFast]

Hi CPO!! It's good to have you back!!

On your jewelry question, you are correct. The total value of your jewelry cannot exceed $7500 total. And as you add up items, you deduct them from the $30K cap. That too is correct.

An FYI on jewelry,......... Don't use appraised values. Jewelry appraisals are made for insurance/replacement purposes. Many times, appraisers add in a buffer because they expect you won't get an updated value for several years.

For BK purposes,............ Take your pieces to a jeweler or pawn shop. Act like you might want to sell your items for cash. See what the jeweler or pawn shop will offer you, Cash on the barrel head. Many times, jewelry pieces will only bring scrap value in a quick sale situation.

As to the firearms,........... You're really gonna have to ask an attny about having more than 2. I've seen one post, an Old Law Filer, where there was no exemption for firearms at all. He had an old 410 and was ordered by the Trustee to turn it over. Even tho the guy had sufficient personal property Exemption to cover the value, there was no specific wording to protect firearms in his Exemptions.

http://www.bankruptcyforum.com/showt...&highlight=410

Post #20 of that thread.

[CPO]

SinkingFast,

Thanks for that good info. Sometimes the learning curve on this is straight up....and I can't see the forest for the trees.

Great idea on the appraisal thing. Never would have thought of it. I was just going to take them to my jeweler...bad idea. He thinks in terms of insurance.

I've got to many guns anyway...but you can bet I'll be keeping the two good ones!

Thanks again.

[emoney]

For firearms in Texas the limit is two. So pick the two that you most want to keep and you will have to turn over all the others to the trustee and he will sell them.
Regards,
emoney

[pv34pv3p]

SinkingFast,

Thanks for that good info. Sometimes the learning curve on this is straight up....and I can't see the forest for the trees.

Great idea on the appraisal thing. Never would have thought of it. I was just going to take them to my jeweler...bad idea. He thinks in terms of insurance.

I've got to many guns anyway...but you can bet I'll be keeping the two good ones!

Thanks again.

Any reason ya can't convert the excess weaponry into something exempt...like an IRA contribution, home improvement, vehicle maintenance, or a freezer full of steaks?

pv34pv3p

[CPO]

pv....

Yes, I like the way you think....

Seems I was thinking about my personel property list as it exists today compared to what it will look like when I file....beginning of May '07.

I see no reason why I can't sell any of my lien free property to assist me.

Any pitfalls to that process?

Thanks my friend,

CPO

[SinkingFast]

Let me say this about that,.................. LOL

You're talking about converting non exempt assets into exempt assets or using the money for living expenses. Possibly including paying your attny's and filing fees.

We did that. We sold things for money to live. Our attny detailed everything that happened up to a year prior to filing in our BK paperwork. Including copies of receipts from the sales. Detailed what the items were that we sold, for how much, and where the money went.

Let me tell you,........... The Trustee was not totally pleased. He made a comment to the effect of, "It seems at one point you DID have some assets." But there was really nothing he could do. All the money was accounted for for necessary living expenses.

So if you decide to sell your excess guns,............. Document, Document, Document.

Sell to uninterested 3rd parties. Not family or friends. Get receipts. Deposit the funds directly into your bank account so you can show the flow of monies in and out. Make sure you spend the money on things that are acceptable to the Court. Living expenses, medical expenses, car repairs, attny's and filing fees, etc.

And one final point,............ I don't know if this has any bearing or not. But everything we sold, except for our house, was sold prior to retaining our attny. So that's a thought for you to bear in mind.

[CPO]

So, as far as selling property to pay living expenses, it's better to stick with exempt property which the Trustee can't attach...

Correct?

Hmmm, so if I have 4 guns, two would be exempt and two would not be...that means I would keep two and give two to the Trustee.

Does that not mean that I can sell "my" two?

Thanks,

CPO

Don't get me wrong. I'm not trying to cheat anybody. But, I do have simple living expenses to pay and no income. I may be able to generate some income from selling some personal property, and I understand the idea of fraudelent purchases and last-minute transfers. If I sold a gun it would be to buy milk...if you get my idea.

[SamanthaJones]

I doubt the trustee is interested in two guns.

They want assets that will sell readily and produce a minimum of $1000 to pay creditors (Those are the 'local rules' for the trustee in my district, anyway). Those exemptions are from the dark ages, a simpler time, when those guns would have had more significance in value. (Another example is being able to exempt 'one bible', and the mention of cattle, livestock, and the like~).

[CPO]

Excuse my humor....but, in some ways Texas is STILL in the dark ages....hey, my state and I get to knock my state....

Anyway, I think I'm getting this. My guns would not bring much money anyway, but I would want to keep a couple of them if possible.

I'll just be careful and sell only exempt property and be able to show that the money was spent on basic living expenses...which will not be difficult to do if I do it at all.

These exercises are great info though...I hope everybody in a similar situation learns from all this great info.

CPO

[SinkingFast]

They want assets that will sell readily and produce a minimum of $1000 to pay creditors (Those are the 'local rules' for the trustee in my district, anyway). Those exemptions are from the dark ages, a simpler time, when those guns would have had more significance in value. (Another example is being able to exempt 'one bible', and the mention of cattle, livestock, and the like~).

Just because Exemptions sound like they were written in a different time doesn't mean they won't hold. If the Exemption reads 2 firearms, you can bet your bootie the Trustee will sieze anything over 2.

All Trustees work with Auctioneers who regularly sell siezed property. There's a Sale here, once a month, just a few blocks from the Court House. You name it, the Court sells it.