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Texas Bankruptcy Exemptions
The Texas bankruptcy exemptions
chart, see below, details the property you can exempt or protect from creditors
when you file bankruptcy in Texas. You may exempt any property that falls into
one of the exemptions categories below, up to the dollar amount listed. You will
be able to kept this exempted property after you file bankruptcy. Please note
that there are certain debts which you will not be able to erase in bankruptcy.
In Texas, you also have
the choice of using the federal exemption statutes instead of your Texas exemptions.
An exemption limit applies to any
equity you have in the property. Equity is the difference between the value of
the property and what is owed on the property. For example, a car valued at
$5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a
loan, such as a car or home, and you are current on the payments, the equity is
covered by your exemptions, and you elect to keep making payments on the loan
you generally can keep this property through the bankruptcy. If all the equity
is not covered by your exemptions the trustee may elect to liquidate this asset
and distribute the assets. Generally, in this case, you would be entitled to the
value of your exemption in the asset as a cash payment.
Bankruptcy law allows married
couples filing jointly to each claim a full set of exemptions, unless otherwise
noted.
To keep non-exempt property, a
debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Texas
you may also use certain federal exemptions in addition to your Texas exemptions.
| ASSET |
EXEMPTION DESCRIPTION |
LAW SECTION |
| Homestead |
Unlimited; property cannot
exceed 1 acre in town, village, city or 100 acres (200 acres for families)
elsewhere; sale proceeds exempt for 6 months after sale (need not occupy
if not acquire another home, Property 41.003) May
file homestead declaration |
Property 41.001, 41.002
Property 41.005 |
| Personal Property |
Athletic and sporting
equipment, including bicycles; 2 firearms; home furnishings, including
family heirlooms; food; clothing; jewelry (not to exceed 25% of total
exemption); 1 two-, three- or four wheeled motor vehicle per member of
family or single adult who holds a driver’s license (or who operates
vehicle for someone else who does not have a license); 2 horses, mules or
donkeys and a saddle, blanket and bridle for each; 12 head of cattle; 60
head of other types of livestock; 120 fowl; and pets to $30,000 total
($60,000 for head of family) Burial plots
Health aids |
Property 42.001, 42.002
Property 41.001
Property 42.001(b) (2) |
| Insurance |
Church benefit plan benefits
Fraternal benefit society benefits
Life, health, accident or annuity benefits or monies,
including policy proceeds and cash values to be paid or rendered to
beneficiary or insured
Life insurance present value if beneficiary is debtor or
debtor’s dependent (see note under personal property)
Retired public school employees group insurance
Texas employee uniform group insurance
Texas state college or university employee benefits |
1407a-6
885.316
Insurance 21.22
Property 42.002(a) (12)
Insurance 3.50-4(11) (a)
3.50-4(11),1575.006
1551.011
Insurance 3.50-3(9) (a) |
| Miscellaneous |
Property of business
partnership |
6132b-25 |
| Pensions |
County & district employees
ERISA-qualified government or church benefits, including
Keoghs and IRAs
Firefighters
IRAs to extent tax-deferred
Judges
Keoghs to extent tax-deferred
Law enforcement officers’ survivors
Municipal employees
Police officers
Retirement benefits to extent tax-deferred
State employees
Teachers |
Government 811.005
Property 42.0021
6243e(5), 6243e.1(12),
6243e.2(12)
Property 42.0021
Government 811.005
Property 42.0021
6228f(8)
6243g, Government
811.005
6243d-1(17), 6243j(20),6243g-1(23B)
Property 42.0021
Government 811.005
Government 811.005 |
| Public Benefits |
Crime victims’ award
Medical assistance
Public assistance
Unemployment compensation
Workers’ compensation |
56.49
Hum. Res. 32.036
Hum. Res. 31.040
5221b-13
8308-4.07 |
| Tools of Trade |
Farming or ranching vehicles
and implements Tools, equipment (includes boat &
motor vehicles) & books |
Property 42.002(a) (3)
Property 42.002(a) (4) |
| Wages |
Earned but unpaid wages
Unpaid commissions to 75% (see personal property) |
Property 42.001(b) (1)
Property 42.001(d) |
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