Bankruptcy Exemptions in Texas

If you are filing bankruptcy in Texas, you are allowed to exempt certain categories of assets from liquidation. Some states allow you to use the federal exemption, some states have their own state exemption list and others allow you to choose either the federal or state exemption list.

In the state of Texas, you may choose to use the federal exemption list instead of your state exemptions. Exemptions are allowed to help individuals keep certain assets that can be used to help them with a fresh financial start after filing bankruptcy.

Your bankruptcy schedule will outline all property that is considered exempt and will be filed with the bankruptcy court when you file bankruptcy. If there are objections, your creditors can identify them at the meeting of the creditors. If the creditors do not have objections, the identified exempt property will not be considered property of your bankruptcy estate.

Texas Exemption List

Name of Asset Exemption Description
Homestead

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.  Prop. 41.001

Prop. 41.005 - Homestead declaration must be filed or the court will charge you to file it for you.
Personal Property
    • Prop. 41.001 - 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).
    • Prop. 42.002 - Home furnishings, including family heirlooms; food; clothing; jewelry up to 25% of the special 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
    • House hold pets.
    • Special limit Total of all items under Property 42.002 (including tools of trade and cash value of life insurance) cannot exceed $30,000 total ($60,000 for head of family).
    • Prop. 42.0021 - Health savings accounts.
Insurance

Insurance 1551.011 - Texas employee uniform group insurance.

Insurance 1575.006 - Texas public school employees group insurance.

Insurance 1601.008 - Texas state college or university employee benefits.

Insurance 885.316 - Fraternal benefit society benefits.

Insurance 1108.051 - Life, health, accident or annuity benefits, policy proceeds, cash values and monies due or already paid to beneficiary or insured.

1407a - Church benefit plan benefits.

Miscellaneous Items

Prop. 42.001 - Alimony and child support.

Education 54.709 - Higher education savings plan trust account.

Alcohol Beverage Code 11.03 - Liquor permits and licenses.

Education 54.639 - Prepaid tuition plans.

6132b-2.04 - Business partnership property.
Tools of the Trade

Prop. 42.002 - 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 special limit listed under Personal property.
Public Benefits

Labor 207.075 - Unemployment compensation.

Labor 408.201 - Workers' compensation.

Criminal Process 56.49 - Crime victims' compensation.

Human Resource 31.040 - Public assistance.

Human Resource 32.036 - Medical assistance.
Pensions

11 U.S.C. § 522 - Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000 per person.

Government 821.005 - Teachers.

Government 821.004 - Judges.

Government 821.006 - County and district employees.

Government 615.005 - Law enforcement officers, firefighters, and emergency medical personnel's survivors.

6243d-1 - Police officers.

6243e - Firefighters.

6243h & Govt. 811.005 - State employees, elected officials, and municipal employees.

Prop. 42.0021- ERISA-qualified church or government benefits, including IRAs and Keoghs; retirement benefits to extent tax-deferred.
Wages Prop. 42.001 - Earned but unpaid wages; and unpaid commissions for personal services up to 25% of the special limit from above.
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