Texas Bankruptcy Exemptions

Texas has a generous list of exempt property for persons who file bankruptcy. Exempt property is not included in the bankruptcy estate and is kept by the debtor.

Can I keep my car and home if I file Bankruptcy?

Homestead Exemption
Unlimited amount, but cannot exceed 10 acres in a city, town, or village, or 100 acres (200 acres for family) elsewhere. Sale proceeds are exempt for 6 months after sale.
Homestead declaration must be filed or the court will charge you to file it for you.

Personal Property Exemption
Burial plots and health aids; books containing sacred writings of a religion (exempt from the $60,000 family/$30,000 single total personal property allowed).

Home furnishings, including family heirlooms; food; clothing; jewelry up to 25% of the limit stated below; 2 firearms; athletic & sporting equipment (includes bicycles); 1 motor vehicle for each adult with drivers license or who relies on another to operate a vehicle; 2 horses, mules, or donkeys, with saddle, blanket & bridle for each; 12 head cattle; 6O head other livestock; 120 fowl; food on hand for these animals; and household pets. Total value of all items is limited and (including tools of trade and cash value of life insurance) cannot exceed $30,000 total ($60,000 for head of family). Funds in a health savings accounts.

Wage Exemption
Earned but unpaid wages; and unpaid commissions for personal services up to 25% of the limit stated above.

Pension Exemption
Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000 per person. This includes retirement savings in special programs for: teachers; judges; county and district employees; law enforcement officers, firefighters, and emergency medical personnel’s survivors; police officers; firefighters; state employees, elected officials, and municipal employees; and ERISA-qualified church or government benefits, including IRAs and Keoghs or any retirement benefits to extent tax-deferred.

Public Benefit Exemption

  • Unemployment compensation.
  • Workers’ compensation.
  • Crime victims’ compensation.
  • Public assistance.
  • Medical assistance.

Tools of Trade Exemption
Tools, books, and equipment, including motor vehicles and boats used in trade or profession; and farming or ranching vehicles and implements. Tools of trade exemptions are included in the  limit total listed under Personal property.

Insurance Exemption

  • Texas employee uniform group insurance.
  • Texas public school employees group insurance.
  • Texas state college or university employee benefits.
  • Fraternal benefit society benefits.
  • Life, health, accident or annuity benefits, policy proceeds, cash values and monies due or already paid to beneficiary or insured.
  • Church benefit plan benefits.

Miscellaneous Exemptions

  • Alimony and child support.
  • Higher education savings plan trust account.
  • Liquor permits and licenses.
  • Prepaid tuition plans.
  • Business partnership property.

FAQ

Why do I need to submit a new wage order when I modify my plan

When we modify your bankruptcy plan we are changing your plan payments. This means that we have to get with your employer and change the terms and amount of your wage order. The only way we can do that is by filling out a new wage order form.  

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What happens if the stay terminates on my home?

If the bankruptcy stay terminates on your home that means that even though your in bankruptcy, your creditor can pursue all there legal remedies they can pursue if you were not in bankruptcy. This includes foreclosure, and having your house sold and evicting you from your house.

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