How Can Texas Bankruptcy Exemptions Protect Your Assets?

 Posted on December 23, 2024 in Bankruptcy

If you are about to file Chapter 7 or Chapter 13 bankruptcy, you may be concerned about losing some important assets, such as your home and vehicle. The good news is that Texas offers bankruptcy exemptions that can protect your home, car, and certain personal property. The best way to get more information about how Texas bankruptcy exemptions can protect you is to contact a Fort Worth, TX bankruptcy attorney.

How Do Exemptions Work in Bankruptcy? 

When you file for bankruptcy, your "nonexempt" assets become part of the bankruptcy estate. However, some assets are exempt from bankruptcy, meaning that you may keep these assets after you file bankruptcy. There are federal and state exemptions, and in Texas you may choose either the state or federal exemptions up to a certain amount.

What Are Common Texas Bankruptcy Exemptions?

Texas has a number of bankruptcy exemptions, including life, health, and accident insurance, pensions of certain kinds of employees, burial plots, and even a percentage of unpaid commissions. However, the bankruptcy exemptions that you are likely to utilize most often are on your home, car, and certain personal property.

Texas Homestead Exemption

If you own your primary residence in Texas, there is good news for you if you file for bankruptcy. Texas has an unlimited homestead exemption on a home that serves as a primary residence. For comparison, the federal homestead exemption is currently just under $30,000. For the exemption to apply in Texas, the property size must be no more than 10 acres in urban areas and 100 acres in a rural area, per individual. The exemption includes improvements made to the primary residence.

Texas Motor Vehicle Exemption

In Texas, each household may exempt the entire value of a motor vehicle, although that amount gets included in the personal property exemption. You may take advantage of the motor vehicle exemption even if the person who uses that car does not have a driver’s license but relies on someone else to drive the vehicle.

Texas Personal Property Exemption

You may deduct up to $50,000 of personal property per individual adult. This includes personal property such as:

• Home Furnishings

• Jewelry

• Two firearms

• Certain animals

• Farming and ranching vehicles 

• Clothing and food

Contact a Dallas, TX Bankruptcy Attorney

Filing for bankruptcy can be a difficult decision, not least of all because you may be worried about losing your home or car. An experienced Fort Worth, TX bankruptcy attorney can work with you to take advantage of Texas bankruptcy exemptions to safeguard your property.  At Acker Warren P.C. our attorneys are ready to work with you on any bankruptcy matter. Call our offices at 817-752-9033 for a free consultation today.