Christopher Todd
Morrison, P.C.

Christopher Todd Morrison, P.C.

Affordable Bankruptcy
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Understanding Texas bankruptcy exemptions

Filing for bankruptcy does not mean losing everything you own. In fact, Texas bankruptcy law allows you to keep most of your personal property.

Review the available bankruptcy property exemptions in Texas if you have substantial debt you cannot pay and want to find a solution for your financial struggles.

Homestead exemption

Texas has no limit on the exemption amount for your primary residence as long as you have lived in the state for at least 40 months. That means if you file bankruptcy in the state, you can keep your home and land no matter what their value. You can retain up to 100 acres of land in a rural area and up to 10 acres if you live in a town or city.

Personal property

If you are a single individual, you can keep up to $50,000 in personal property if you file for bankruptcy in Texas. If you live with a spouse or children, the personal property limit doubles to $100,000. This category can include jewelry, animals, clothing, food and up to two firearms.

Texas also has an unlimited exemption for motor vehicles. You can keep one car or truck for every person in your household who has a driver’s license.

Pensions and retirement accounts

As long as your retirement fund or pension has a federal tax exemption, it also qualifies for Texas bankruptcy exemption. Texas also specifies exemption for certain state-specific pension and retirement plans.

Although you can select the federal exemptions instead of the Texas exemptions, most people who file find they are able to keep more property with the state bankruptcy laws.