The Texas Bankruptcy Exemptions

January 2, 2018 By: Carrie Weir

When you file a Chapter 7 bankruptcy in Texas, you can liquidate (permanently discharge) certain debts in exchange for the sale of non-exempt assets. As a general rule, family law obligations cannot be discharged, and tax debts and student loan arrearages are extremely hard to get rid of. You don’t have to give up everything you own, either. In fact, you can choose between the exemptions available under Texas law and those available under federal law (You cannot mix and match between the two, however).

The Texas Bankruptcy Law Exemptions

Here are the Texas bankruptcy law exemptions:

• The homestead exemption—this exemption is designed to allow you to keep your home or at least some equity in your domicile. In Texas, unlike many states, there’s no dollar amount on the homestead exemption. Instead, there’s a limit based on the type of property—10 acres for urban property and 200 acres everywhere else.
• The personal property exemption—Texas allows you to claim up to $60,000 in personal property exemptions. Certain items, including burial plots and health aids, are excluded from the calculation, but most others types of property, including livestock, farm tools, weapons and domestic animals, are included
• Retirement or pension plans—These funds are generally exempt under federal law

The following types of assets fall under the general personal property exemption:

• Insurance benefits, including public school employee group insurance, fraternal benefit societies and church benefit plans
• Public benefits, such as crime victim’s compensation, unemployment compensation, workers’ compensation and public assistance
• Miscellaneous assets, including wages, tools and equipment, alimony and child support, and liquor licenses and permits

There is no exemption in Texas for the proceeds of a personal injury lawsuit.

Contact Heath, TX Bankruptcy Attorney Carrie Weir

I provide a free initial consultation to anyone with questions or concerns regarding a bankruptcy filing. 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.