Many people are concerned about losing their possessions if they file for bankruptcy, including their home and their vehicle. This isn’t quite true, however. While some assets are inevitably liquidated during the bankruptcy process, there are a great deal of assets that are exempt. These vary from state to state — learn about the bankruptcy exemptions in Texas below.
Texas is generous where homestead exemptions are concerned. In fact, individuals filing bankruptcy can keep their homestead no matter the value. However, the only restrictions are that it must not exceed 10 acres in a city or town or 100 acres outside of a city or town.
Personal wages that are earned but unpaid are exempt from Texas bankruptcy.
Personal property exemptions are numerous under Texas bankruptcy laws and exempt property includes but is not limited to:
- Home furniture, even those that are valuable family heirlooms
- Sport or athletic equipment
- Up to two firearms
- One vehicle for every adult in the home who is licensed, or who relies on another in the home for transportation
- Jewelry, up to 25% of $50,000 in value ($100,000 for the head of household)
- Livestock in the amount of 12 cattle, 60 other types of livestock, 2 horses, and 120 fowl
Pensions for individuals in certain fields of work, including but not limited to teachers, law enforcement, judges, firefighters and other emergency responders, state and municipal employees, and county employees.
Texas allows exemptions for uniform group insurance for Texas employees and public school employees, as well as insurance benefits for Texas state university or college employees. It also allows exemptions for health and life insurance.
Other Texas bankruptcy exemptions include:
- Child support
- Trust accounts with higher education savings plans
- Tuition plans that have been prepaid
- Liquor licenses
How to Get the Maximum Exemptions When You File for Bankruptcy
The key to getting the maximum amount of exemptions is to hire an experienced bankruptcy lawyer to assist you with the filing process. At the Law Office of Howard Tagg, we can evaluate your unique case and determine what may be able to be considered exempt. In fact, in many cases, individuals are able to keep most, if not all, of their property in a bankruptcy and enjoy the freedom of having their debts cleared and starting over with a clean financial slate.
Call now for a consultation at (903) 730-6366.