Are a mineral lease and mineral royalties on the land I live on, protected under the homestead exception in Chapter 7?
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Are a mineral lease and mineral royalties on the land I live on, protected under the homestead exception in Chapter 7?
Under TX law.
Asked on May 3, 2011 under Bankruptcy Law, Texas
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The homestead exemptionis very limited so mineral leases and royalties may not be protected directly under the homestead exemption unless you live in a state that allows unlimited homestead exemptions. Further, you may be able to use your wildcard exemption but again, you need to determine with your bankruptcy counsel if it only applies to real property like furniture and vehicles, or if it can also apply to mineral rights, leases and/or royalties. The best bet is to do some work on locating a great bankruptcy attorney who has significant experience with land matters, a business bankruptcy attorney that has handled such issues involving commercial property might be useful.
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