Posts Tagged ‘bankruptcy exemptions in Texas’

Texas Bankruptcy Exemptions

In this state, you have the option to choose either Texas bankruptcy exemptions or the federal set of exemptions. However, you will be able to use the federal supplemental exemptions only when you choose to go for the state-specified exemptions. Following is a brief rundown on what types of properties are exemptible and how much as per the Texas bankruptcy laws.


No exemptions are allowed in the state of Texas in the wildcard category.


Up to 1/4th of the maximum (aggregate total) exemptions allowed for personal properties (see below) can be exempted Commissions earned but not yet paid. However, wages (not commissions) that are yet to be paid but have been earned are exemptible in full.

Tools Of Trade

Books used in trade, tools, equipment, vehicles and boats can be exempted in full value (no maximum ceiling). The laws regarding Texas bankruptcy exemptions also mention it specifically that implements and vehicles that are being used in ranching or farming by the debtor are also exemptible in full.

Public Benefits

You can avail full exemptions for certain types of public benefits also that include Workers’ compensation benefits, unemployment compensation benefits, medical assistance benefits, public assistance benefits, and compensation for crime victims.

Personal Assets And Properties

The aggregate total value of exemptions in this category is up to $60,000 for a family and up to $30,000 for a single person. Here, it is important to note that this maximum limit includes the exemptions allowed in the tools of trade category.

- 100% of health savings accounts
- Pets and other domestic animals – up to 120 fowl, up to 12 head of cattle, up to 2 donkeys, mules, or horses, and unlimited pets.
- One motor vehicle (including four-wheelers, three-wheelers, and two wheelers) for each family member. (no maximum limit in terms of equity value)
- The laws regarding Texas bankruptcy exemptions also allow you to keep sporting equipment, including bicycles.
- Two Firearms
- Jewelry items are also exemptible but the total value must not exceed 1/4th of the aggregate total exemption limit allowed in the personal property category.
- Clothing and food can be exempted in full.
- 100% of Furnishings and family heirlooms
- 100% of health aids
- All of burial plots

Retirement Savings And Pensions

Certain types of pensions and retirement savings that are3 exemptible in full include Tax-deferred retirement benefits, ERISA-qualified church and government benefits (including Keoghs and IRAs), Judge pensions, Teacher pensions, County or district employees pensions, Municipal and state elected official pensions, Municipal and state employees pensions, Firefighter pensions, Police officer pensions, Federal employees pensions, emergency medical personnel pensions, government mental health workers pensions, and law enforcement officers and employees pensions.


You can also avail Texas bankruptcy exemptions in full for certain types of assets and properties in the miscellaneous category that may include alimony and child support payments, Savings plan trust accounts for higher education, Tuition plans (prepaid), Liquor license and permits, and Business partnership property.


100% exemptions can be availed for the following types of insurance benefits.

- Employee benefits for Texas state university or college employees
- Group insurance for Texas public school employees
- Uniform group insurance for Texas employees
- Annuity contract, or accident, health or life insurance, including cash value, monies, proceeds, and benefits
- Fraternal benefit society benefits
- Benefits from church benefit plan


Though there is no maximum limit in terms of equity value of the properties, certain limitations apply in terms of its area:

- The maximum limit is two hundred acres for a family outside of a city, village or town.
- For a single person, the maximum exemption limit for homestead properties is 100 acres
- If you do not file the homestead declaration, you may be charged by the court for the same.
- Sales proceeds may also be exemptible for up to six months from the date of sale.

For more accurate description on what types of properties you might be able to exempt in your case, you are advised to consult with an experienced Texas bankruptcy attorney who specializes in Texas bankruptcy exemptions.

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