Question:
Many of the original settlers in Texas were debtors fleeing from creditors in other states. As a result, Texas bankruptcy laws generously protect a debtor's "homestead" from being seized by creditors. A "homestead" under Texas law can be as large as one acre in an urban area or 200 acres in a rural area. As a result of this exemption, Texas has become a haven for people in financial difficulty.
Some of those around the table, advocate the Texas homestead exemption, and argue that it is a great thing to provide a debtor with the essentials he or she needs to make a fresh start. Critics respond that the exemption is a dodge that debtors can use to hide their assets.
There is a pause in the discussion. Now is the chance to share the sharp legal thinking you have developed.