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?

Texas Bankruptcy Exemptions

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.