Exemptions determine what property you get to keep when you file bankruptcy. Understanding them is critical -- they can mean the difference between keeping and losing your home, car, and savings.
Bankruptcy exemptions are laws that protect certain property from being taken to pay your creditors. In Chapter 7, non-exempt property can be sold by the trustee. In Chapter 13, the value of non-exempt property affects how much you must pay through your plan.
Texas has some of the most generous exemptions in the country. The homestead exemption is unlimited in value (up to 10 acres urban), and vehicles needed for work are fully exempt.
Protects up to Unlimited (up to 10 acres urban / 100 acres rural) of equity in your primary residence. Equity is your home's value minus what you owe on the mortgage.
Tex. Prop. Code 41.001
Protects up to Fully exempt if needed for work of equity in a motor vehicle.
Tex. Prop. Code 42.001/.002
No general wildcard -- but $60K personal property is very broad
| Property | Amount |
|---|---|
| Retirement accounts (IRA/401k) | Fully exempt |
| Social Security benefits | Fully exempt |
| Unemployment benefits | Fully exempt |
| Workers' compensation | Fully exempt |
| Health aids | Fully exempt |
| Public assistance benefits | Fully exempt |
Texas's homestead exemption protects Unlimited (up to 10 acres urban / 100 acres rural) of equity in your primary residence.
Texas's vehicle exemption is Fully exempt if needed for work. You can supplement this with other available exemptions.
Yes. ERISA-qualified retirement accounts (401k, pension) are generally fully exempt in bankruptcy. IRAs are protected up to federal limits.