^ Top - Texas Bankruptcy Exemptions
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Texas Homestead Exemption
Almost every state provides protection for equity in the family home, and many states have increased the amount of protection in recent years. Seven states offer unlimited protection. Most states are not as generous.
New Federal Residency Requirement
Under the new bankruptcy law, you must be have lived in the state for at least 40 months (three years and four months) before you can claim any homestead protection greater than $160,375. (If your state's exemption offers less than this amount, the law is irrelevant to you.) The law is poorly worded but seems to say that if you move from one home to another in the same state, you can claim that state's homestead protection.
IF you are moving to another state, OR you moved to Texas within in the last two years, click here.
Texas Exemptions
- TX Exemptions
- Must file homestead declaration, or court will file it for you and charge you for doing so
Tex. Prop. Code Ann. § 41.023
Tex. Prop. Code Ann. § 41.021
Tex. Prop. Code Ann. § 41.022
Tex. Prop. Code Ann. § 41.005 (f)
- Unlimited; property cannot exceed 10 acres in town, village, city or 100 acres (200 for families) elsewhere; sale proceeds exempt for 6 months after sale (renting okay if another home not acquired, Prop. 41.003)
Tex. Prop. Code Ann. § 41.003
Tex. Prop. Code Ann. § 41.001
Tex. Prop. Code Ann. § 41.002
Tex. Const. Art. 16, § 50
Tex. Const. Art. 16, § 51
Federal Exemptions
- Real property, including co-op or mobile home, or burial plot to $25,150; unused portion of homestead to $12,575 may be applied to any property
11 U.S.C. § 522 (d)(1), (d)(5)
Home Valuation tool
Just add your street address to get an estimate of the value of your house, and all others in your neighborhood. (Note: Does not serve all areas, and valuations are imperfect estimates only.)
^ Top - Texas Bankruptcy Exemptions
Homestead |
Insurance | Misc |
Pensions |
Personal Property |
Public Benefits |
Tools of Trade |
Wages |
Wild Card |
- AL
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Texas Insurance exemptions
Virtually all states protect life insurance proceeds in some manner or another. Some restrict it to proceeds paid to a dependent. Many states also protect the cash-value or loan-value of insurance policies.
If a substantial amount of your assets are in life insurance, you may want to consult a professional to determine the extent to which those policies are exempt.
Texas Exemptions
- Fraternal benefit society benefits
Tex. Ins. Code Ann. § 885.316
- Life, health, accident, or annuity benefits, monies, policy proceeds, & cash values due or paid to beneficiary or insured
Tex. Ins. Code Ann. § 1108.051
- Texas employee uniform group insurance
Tex. Ins. Code Ann. § 1551.011
- Texas public school employees group insurance
Tex. Ins. Code Ann. § 1575.006
- Texas state college or university employee benefits
Tex. Ins. Code Ann. § 1601.008
Federal Exemptions
- Disability, illness, or unemployment benefits
11 U.S.C. § 522 (d)(10)(C)
- Life insurance payments from policy for person you depended on, needed for support
11 U.S.C. § 522 (d)(11)(C)
- Life insurance policy loan value, in accured dividends or interest, to $13,400
11 U.S.C. § 522 (d)(8)
- Unamtured life insurance contract, except credit insurance policy
11 U.S.C. § 522 (d)(7)
^ Top - Texas Bankruptcy Exemptions
Homestead |
Insurance | Misc |
Pensions |
Personal Property |
Public Benefits |
Tools of Trade |
Wages |
Wild Card |
- AL
- AK
- AZ
- AR
- CA
- CO
- CT
- DE
- DC
- FL
- GA
- HI
- ID
- IL
- IN
- IA
- KS
- KY
- LA
- ME
- MD
- MA
- MI
- MN
- MS
- MO
- MT
- NE
- NV
- NH
- NJ
- NM
- NY
- NC
- ND
- OH
- OK
- OR
- PA
- RI
- SC
- SD
- TN
- TX
- UT
- VT
- VA
- WA
- WV
- WI
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Miscellaneous other exemptions for Texas
Texas Exemptions
- Alimony and child support
Tex. Prop. Code Ann. § 42.001 (b)(3)
- Higher education savings plan trust account
Tex. Educ. Code Ann. § 54.709 (e)
- Liquor licenses and permits
Tex. Alco. Bev. Code Ann. § 11.03
- Prepaid tuition plans
Tex. Educ. Code Ann. § 54.639
Federal Exemptions
- Alimony, child support needed for support
11 U.S.C. § 522 (d)(10)(D)
^ Top - Texas Bankruptcy Exemptions
Homestead |
Insurance | Misc |
Pensions |
Personal Property |
Public Benefits |
Tools of Trade |
Wages |
Wild Card |
- AL
- AK
- AZ
- AR
- CA
- CO
- CT
- DE
- DC
- FL
- GA
- HI
- ID
- IL
- IN
- IA
- KS
- KY
- LA
- ME
- MD
- MA
- MI
- MN
- MS
- MO
- MT
- NE
- NV
- NH
- NJ
- NM
- NY
- NC
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- OK
- OR
- PA
- RI
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- VA
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Texas Pensions & Retirement Savings Exemptions
The new federal bankruptcy law now automatically exempts a virtually all tax-exempt pensions and retirement savings accounts from bankruptcy, even if you are using state law exemptions. 11 U.S.C. § 522(b)(3)(C). (See Help Topic: Special Rules For Retirement Accounts.)
The law protects up to $1,283,025 of any pension or retirement fund that qualifies forspecial tax treatment under Internal Revenue Code sections 401,402, 403, 408, 408A, 414, 457, or 501(a).
Federal Exemptions
- All types of retirement funds and accounts that tax-exempt under IRC section 401, 403, 408, 408A, 414, 457, or 501(a) ; IRAs & Roth IRAs limited to $1,362,800 (excluding rollover contributions); limitation can be overidden by judge.
11 U.S.C. § 522 (d)(12)
11 U.S.C. § 522 (n)
Texas Exemptions
- County & district employees
Tex. Gov’t. Code Ann. § 811.006
- ERISA-qualified government or church benefits, including Keoghs and IRAs & Roth IRAs; (limited to tax-deductible contributions)
Tex. Prop. Code Ann. § 42.0021
- Firefighters
Tex. Civ. Stat. Ann. Art. 6243e.1 (1.04)
Tex. Civ. Stat. Ann. Art. 6243e (5)
Tex. Civ. Stat. Ann. Art. 6243b (15)
Tex. Civ. Stat. Ann. Art. 6243a-1 (8.03)
Tex. Civ. Stat. Ann. Art. 6243e (5)
- Judges
Tex. Gov’t. Code Ann. § 831.004
- Law enforcement officers, firefighters, emergency medical personnel survivors
Tex. Gov’t. Code Ann. § 615.005
- Municipal employees & elected officials, state employees
Tex. Gov’t. Code Ann. § 811.005
Tex. Civ. Stat. Ann. Art. 6243h (22)
- Police officers
Tex. Civ. Stat. Ann. Art. 6243d-1 (17)
Tex. Civ. Stat. Ann. Art. 6243b (15)
Tex. Civ. Stat. Ann. Art. 6243a-1 (8.03)
Tex. Civ. Stat. Ann. Art. 6243j (20)
- Retirement benefits to extent tax-deferred
Tex. Prop. Code Ann. § 42.0021
- Teachers
Tex. Gov’t. Code Ann. § 821.005
^ Top - Texas Bankruptcy Exemptions
Homestead |
Insurance | Misc |
Pensions |
Personal Property |
Public Benefits |
Tools of Trade |
Wages |
Wild Card |
- AL
- AK
- AZ
- AR
- CA
- CO
- CT
- DE
- DC
- FL
- GA
- HI
- ID
- IL
- IN
- IA
- KS
- KY
- LA
- ME
- MD
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- MI
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- MT
- NE
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- NH
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- NM
- NY
- NC
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- OK
- OR
- PA
- RI
- SC
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- TX
- UT
- VT
- VA
- WA
- WV
- WI
- WY
Texas Personal Property Exemptions
This category covers your car, your non-retirement bank accounts, and most of your other personal possessions, other than your house.
States vary widely on how generous they are in this area. Some exemptions may be for any combination of property up to an aggregate amount. Other exemptions apply only to specific items, such as jewelry.
Remember that an exemption will not protect your car from being repossessed by the holder of the car loan you used to purchase the vehicle if you pledged the vehicle as security for the loan. To keep the car, you will have to pursue other options such as 'redemption' or 'reaffirmation.' See the help topics and How to File for Chapter 7 Bankruptcy for more on this.
Special notes about Texas Personal Property Exemptions: all personal property exemptions combined capped at $60,000 total for family, $30,000 for single adult. (see also Tools of Trade)
Texas Exemptions
- 1 two-, three- or four-wheeled motor vehicle per family member or per single adult who holds a driver's license; or, if not licensed, who relies on someone else to operate vehicle
Tex. Prop. Code Ann. § 42.002 (a)(9)
- 2 firearms
Tex. Prop. Code Ann. § 42.002 (a)(7)
- Athletic and sporting equipment, including bicycles
Tex. Prop. Code Ann. § 42.002 (a)(8)
- Bible or other book containing sacred writings of a religion (does not count against aggregate limits)
Tex. Prop. Code Ann. § 42.001 (b)(4)
- Burial plots (exempt from total)
Tex. Prop. Code Ann. § 41.001
- Clothing & food
Tex. Prop. Code Ann. § 42.002 (a)(2),(5)
- Health aids (exempt from total)
Tex. Prop. Code Ann. § 42.001 (b)(2)
- Health savings accounts
Tex. Prop. Code Ann. § 42.0021
- Home furnishings including family heirlooms
Tex. Prop. Code Ann. § 42.002 (a)(1)
- Jewelry (limited to 25% of total exemption)
Tex. Prop. Code Ann. § 42.002 (a)(6)
- Pets & domestic animals plus their food: 2 horses, mules, or donkeys & tack; 12 head of cattle; 60 head of other livestock; 120 fowl
Tex. Prop. Code Ann. § 42.002 (a)(10),(11)
Federal Exemptions
- Animals, crops, clothing, appliances, books, furnishings, household goods, musical instruments to $625 per item, $13,400 total
11 U.S.C. § 522 (d)(3)
- Health aids
11 U.S.C. § 522 (d)(9)
- Jewelry to $1,700
11 U.S.C. § 522 (d)(4)
- Lost earnings payments
11 U.S.C. § 522 (d)(11)(E)
- Motor vehicle to $4,000
11 U.S.C. § 522 (d)(2)
- Personal injury recoveries to $25,150 (not to include pain & suffering or pecuniary loss)
11 U.S.C. § 522 (d)(11)(D)
- Wrongful death recoveries for person you depended on
11 U.S.C. § 522 (d)(11)(B)
Auto Valuation Tools:
Both of these websites offer interactive tools to determine the current value of your used car.
^ Top - Texas Bankruptcy Exemptions
Homestead |
Insurance | Misc |
Pensions |
Personal Property |
Public Benefits |
Tools of Trade |
Wages |
Wild Card |
- AL
- AK
- AZ
- AR
- CA
- CO
- CT
- DE
- DC
- FL
- GA
- HI
- ID
- IL
- IN
- IA
- KS
- KY
- LA
- ME
- MD
- MA
- MI
- MN
- MS
- MO
- MT
- NE
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- NH
- NJ
- NM
- NY
- NC
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- OK
- OR
- PA
- RI
- SC
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- TX
- UT
- VT
- VA
- WA
- WV
- WI
- WY
Texas Public Benefits Exemptions
Most states exempt public benefits, consistent with the notion that such benefits are intended as a safety net for the recipient.
Texas Exemptions
- Crime victims' compensation
Tex. Crim. Proc. Code Ann. § 56.49
- Medical assistance
Tex. Hum. Res. Code Ann. § 32.036
- Public assistance
Tex. Hum. Res. Code Ann. § 31.040
- Unemployment compensation
Tex. Lab. Code Ann. § 207.075
- Workers' compensation
Tex. Lab. Code Ann. § 408.201
Federal Exemptions
- Crime victims' compensation
11 U.S.C. § 522 (d)(11)(A)
- Local public assistance
11 U.S.C. § 522 (d)(10)(A)
In re Goertz, 202 B.R. 614 (Bankr.S.D.Mo. 1996)
- Social Security
11 U.S.C. § 522 (d)(10)(A)
- Unemployment compensation
11 U.S.C. § 522 (d)(10)(A)
- Veteran's benefits
11 U.S.C. § 522 (d)(10)(A)
^ Top - Texas Bankruptcy Exemptions
Homestead |
Insurance | Misc |
Pensions |
Personal Property |
Public Benefits |
Tools of Trade |
Wages |
Wild Card |
- AL
- AK
- AZ
- AR
- CA
- CO
- CT
- DE
- DC
- FL
- GA
- HI
- ID
- IL
- IN
- IA
- KS
- KY
- LA
- ME
- MD
- MA
- MI
- MN
- MS
- MO
- MT
- NE
- NV
- NH
- NJ
- NM
- NY
- NC
- ND
- OH
- OK
- OR
- PA
- RI
- SC
- SD
- TN
- TX
- UT
- VT
- VA
- WA
- WV
- WI
- WY
Texas Tools of Trade Exemptions
These are the things you use to make a living. An automobile or truck can be a tool of trade if you use it as such. Commuting to work doesn't count, but if driving is a necessary component of transacting your business, you can claim your vehicle is a tool of trade.
Special notes about Texas Tools of Trade Exemptions: included in aggregate dollar limits for personal property (see Personal Property)
Texas Exemptions
- Farming or ranching vehicles & implements
Tex. Prop. Code Ann. § 42.002 (a)(3)
- Tools, equipment (includes boat & motor vehicles used in trade), & books
Tex. Prop. Code Ann. § 42.002 (a)(4)
Federal Exemptions
- Implements, books, & tools of trade to $2,525
11 U.S.C. § 522 (d)(6)
^ Top - Texas Bankruptcy Exemptions
Homestead |
Insurance | Misc |
Pensions |
Personal Property |
Public Benefits |
Tools of Trade |
Wages |
Wild Card |
- AL
- AK
- AZ
- AR
- CA
- CO
- CT
- DE
- DC
- FL
- GA
- HI
- ID
- IL
- IN
- IA
- KS
- KY
- LA
- ME
- MD
- MA
- MI
- MN
- MS
- MO
- MT
- NE
- NV
- NH
- NJ
- NM
- NY
- NC
- ND
- OH
- OK
- OR
- PA
- RI
- SC
- SD
- TN
- TX
- UT
- VT
- VA
- WA
- WV
- WI
- WY
Texas Wage Garnishment Laws
Most states have a wage garnishment law. In some states, wage garnishment laws can be used in bankruptcy as an exemption to protect income that you had coming due, but not yet received, as of the day you filed, for work you had already done -- so called "earned but unpaid wages".
In some states, the wage garnishment law protects not only wages owed to you, but also wages already in your possession and saved over time preferably holding it in a separate bank account. In other states wage garnishment laws do not protect wages once they are they are in your possession.
Texas Exemptions
- Earned but unpaid wages
Tex. Prop. Code Ann. § 42.001 (b)(1)
- Unpaid commissions not to exceed 25% of total personal property exemptions
Tex. Prop. Code Ann. § 42.001 (d)
Federal Exemptions
- None
11 U.S.C. § 522 (d)
^ Top - Texas Bankruptcy Exemptions
Homestead |
Insurance | Misc |
Pensions |
Personal Property |
Public Benefits |
Tools of Trade |
Wages |
Wild Card |
- AL
- AK
- AZ
- AR
- CA
- CO
- CT
- DE
- DC
- FL
- GA
- HI
- ID
- IL
- IN
- IA
- KS
- KY
- LA
- ME
- MD
- MA
- MI
- MN
- MS
- MO
- MT
- NE
- NV
- NH
- NJ
- NM
- NY
- NC
- ND
- OH
- OK
- OR
- PA
- RI
- SC
- SD
- TN
- TX
- UT
- VT
- VA
- WA
- WV
- WI
- WY
Texas Wild Card Exemption
Most, but not all, states allow a so-called "wild-card" exemption that can apply to any property. The wild card exemption can be of particular help if one or more of your other exemptions falls short of protecting your equity. You may split your wild card exemption amount over multiple items and stack it atop other exemptions as needed to protect exposed equity.
Texas Exemptions
Federal Exemptions
- $1,325 of any property
11 U.S.C. § 522 (d)(5)
- Up to $12,575 of unused homestead exemption amount, for any property.
11 U.S.C. § 522 (d)(5)
^ Top - Texas Bankruptcy Exemptions
Links About Texas Bankruptcy Exemptions
- Message Board Bankruptcy/Debt - Texas - Discussion board on Texas bankruptcy. Good information
