The Texas Bankruptcy Exemptions

Protecting Property from Attachment in a Chapter 7 Filing

When you seek protection under the bankruptcy laws, you can choose to permanently discharge debts under Chapter 7 or to reorganize your debt under Chapter 13. With a Chapter 7 filing, you must turn over certain assets to the bankruptcy court to be sold to pay your creditors. But that doesn’t mean you have to lose everything. You have the right to claim certain property as exemptfrom seizure. There are exemptions available under federal law and under Texas law. You must choose one or the other.

The Texas Bankruptcy Exemptions

Among the exemptions specific to Texas are:

• The homestead exemption—Texas offers an unlimited homestead exemption for property with less than 10 acres in a village, town or city; or less than 100 acres in the country. That exemption is per person, so a married couple could exempt up to 20 or 200 acres.
• The motor vehicle exemption—Texas allows you to claim the entire value of one motor vehicle per household member. The exemption may even be used by a non-licensed household member, if that person relies on someone else to operate the vehicle.
• The personal property exemption—You can exempt up to $50,000 if you are single or $100,000 if you are filing jointly. There are some limits, however. Jewelry cannot comprise more than 25% of your personal exemption. You may only exempt two firearms.
• Pension and retirement accounts—These are generally exempt in Texas
• Insurance benefits—These are likewise not subject to attachment in bankruptcy

Contact Heath, TX Bankruptcy Attorney Carrie Weir

I offer a free initial consultation to all potential bankruptcy clients. Contact my office by e-mail or call me at 972-772-3083 for a private meeting. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.