Exemptions in Texas
A debtor in Texas who files bankruptcy may follow either the Texas statute or the Federal statute when claiming exemptions. Some of the major exemptions that may be available to a person filing bankruptcy in Texas are listed below, with a brief description of each exemption. A lawyer should be consulted to determine the particulars of each exemption and to determine whether it is better to follow the federal statute or the Texas statute. - Homestead (equity in dwelling used as residence)
- Property cannot exceed 1 acre in a town, village, or city or 100 acres elsewhere (200 acres for families)
- Unlimited value in property - Personal property
- Up to $30,000 in value (double for families) and includes: - Home furnishings;
- Family heirlooms;
- Sporting equipment;
- 2 firearms;
- 1 automobile per driver in the family;
- 2 horses, mules, or donkeys;
- 12 head of cattle, 60 head of other livestock, 120 fowl, and pets
- Tools of the trade
- Farming vehicles and equipment - Insurance
- Church benefit plans
- Life, health, or annuity benefits - Pensions
- ERISA qualified benefits needed for support
- State, county, district, and municipal employees (including police and fire fighters)
- IRA's needed for support - Public benefits
- Unemployment
- Workers compensation
- Public assistance
- Social security
- Veteran's benefits
Federal Exemptions may be filed in Texas instead of using the state exemption statute.
Do I Need a Bankruptcy Lawyer?
Bankruptcy is a very complicated process and filing an exemption incorrectly can lead to that property being seized, even if the property would have been exempt had the exemption been filed correctly. Texas allows either the state statute or the federal statute to be used when filing exemptions; each having different assets protected from creditors. A bankruptcy lawyer knows the ins and outs of filing for bankruptcy, and can recommend what chapter of bankruptcy is right for you and ensure that your exemptions are filed correctly. |
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