Can they take the Ranch

[taramilo]

Hi everyone, thanks for all the helpful advice. Got a concern about our Ranch in Texas that is approx. 330 acres. I know that 200 acres is exempt but am concerned about the additional 130 acres. Have a loan out on 70 acres of this 130 acres so that leaves 50 acres. Bank pays, out of escrow, the taxes on one section that is 5.52 ac, 175 ac, and 96 ac. Attorney said all would be exempt, can I believe her? This land was inherited and don't want to take a chance of losing it. Haven't filed yet, Attorney said would have to go Chap. 13. Scared to file due to being afraid of losing the land. Can anyone ease my mind? Thanks.

[emoney]

Why would you trust someone who gives information on this web site and not your attorney??? If you really feel this way you need to find a new attorney that you have complete faith with their advice.
regards,
emoney

[taramilo]

Can they take the Ranch?

After some of the things people have been going through I am alittle nervous
I guess. Just want to be sure nothing happens to the most important thing to us with the exception of our family, thank you very much.

[lrprn]

Your situation is different than most of ours here in that you have a large tract of land you are hoping to protect that does not appear to be secured with a loan or loans. One thing in your favor - you are in Texas which is very bankruptcy-friendly. Did you talk with other lawyers before retaining the one you have?

Texas allows an additional $30,000 of personal property ($60,000 for head of family) - http://research.lawyers.com/Texas/Ba...-In-Texas.html - are you going to use all of that to cover your farm equipment and animals? Also in Texas you can use the federal exemptions - are those more to your favor protecting the land? http://www.bankruptcyaction.com/fedexemptions.htm - see the Homestead section. Another option - is it possible to pay the trustee for the value of your 120 acres in case he/she comes after them?

This is a hard question to ask so please forgive my bluntness - *if* your lawyer is wrong (and I'm not saying he/she is wrong, just exploring all the options), sometimes we have to give up something we want desperately to get the fresh start after bankruptcy we can't get any other way. Is it better to lose 120 acres than eventually lose all 320 acres through foreclosures, liens against your property, and garnishments?

Your lawyer has experience with your district trustees and knowledge about court rulings and customs where you will be filing, so he/she is the very best source of accurate information about your situation. If you don't trust that advice, then as emoney already said, it's doubtful you will get better advice about your unique situation from a bunch of well-meaning strangers on the Internet. We all hope that your lawyer is right and all your acres will indeed be protected - please keep us posted on what happens, ok? We will always be here for moral support and venting no matter what.

[SinkingFast]

In addition to Lrprn's comments,...............

We honestly can't say. Your situation is different than others that have posted here. AND a lot of what happens really depends on your Local Court and what they usually do with folks in a similar situation, the Local Rules, and the Trustee you draw.

There have been people post here before where the Trustee abandon tracts of land.

One I remember, the property was land locked. No way in or out. The Filers owned the property out right and the Trustee simply abandon the property as an asset.

Another I remember,........... The people owned the property jointly with other owners. Maybe it was just too much trouble for the Trustee to force the other owners to buy up the Filer's share. Maybe it was too much trouble to force a sale of the property with other owners involved. Who knows??!! But the Trustee did abandon the property.

So it can happen.

I'm guessing you aren't the first rancher to file BK in Texas. Texas is a very Debtor friendly state. Could be the local custom is to abandon the property. That could be why the attny said your property would be safe.

Your best bet is to schedule more Consult appts with other attnys and get different points of view. Be sure to ask this Question to each one you speak with.

[taramilo]

Can they take the Ranch

Thanks so much for the replies. We do have a loan on 70 acres of the 130 acres. This 70 acres is spread across 3 tracts and I pay escrow each month and the bank pays the taxes on the 3 tracts. The ranch is where my husband is self-employed so it is claimed as such to the IRS as income and as a business. I fully intend to keep paying the note on this. The reason I am contemplating BK is due to debts incurred with a failed business venture, high CC debt and timeshare debts. Just scared the trustee would want the acreage not in the loan. I could never give up the land at all. I intend to call and setup appt with two other BK attorneys for comparison views tomorrow. Thanks again everyone. I will keep in touch.

[spell]

Another point that other have overlooked is that this attorney seems to be directing you towards a Chapter 13.
Chapter 13 is often used to protect assets above the exemption amounts.

[SinkingFast]

Another point that other have overlooked is that this attorney seems to be directing you towards a Chapter 13.
Chapter 13 is often used to protect assets above the exemption amounts.

Very good point, Spell!!

If you were looking to go Ch 7, then the Homestead Exemption limit could be a real stickler. But with the attny advising you go Ch 13, your land should be safe.

BUT,.......... And here's the crux,............ Your Creditors will have to be paid at least as much thru the Ch 13 as they would get if you filed a Ch 7. So if the land were to be seized and sold in a Ch 7, roughly how much money are you looking at there??!!

What's the value of 130 acres of ranch land in your area?? Then divide that by 60 to see approximately what your minimum Ch 13 Plan payment would be. That's just a rough idea. Keep in mind the Trustee's %'age and a portion of your attny's fee would factor in there as well.

[taramilo]

Can They take the Ranch.

Okay, now as I mentioned earlier I have a loan out on 70 acres of this 130 acres. This would leave 60 acres to look at wouldn't it?