Texas Bankruptcy Exemption Basics
When considering bankruptcy there are some questions as to the condition and fate of your assets. The good news is that bankruptcy exemption laws allow you to keep most of your property in bankruptcy. However, there are important differences between the federal exemption laws and Texas bankruptcy exemption laws that could determine how much of your property is protected.
Federal vs. State Exemptions
Texas is one of the more lenient states when it comes to asset protection in bankruptcy. Under the Homestead Exemption, you can exempt 100% of your home with an unlimited value as long as the property is less than 1 acre; whereas the federal exemption only allows for a home up to $125,000 value to be protected.
While both the federal and Texas exemptions offer a wide variety of the types of personal property items that are exempt from bankruptcy, Texas allows for property up to a $30,000 for an individual or $60,000 for a family; whereas the federal exemption caps the value at $10,775, excluding jewelry or cars. The federal exemption allows for a car up to $3,450 to be exempt and Texas allows for one car of unlimited value per licensed member of the household to be exempt.
Both the federal and Texas exemptions allow for retirement, public assistance and insurance benefits to be exempt from bankruptcy.