Texas Bankruptcy Exemptions — What You Keep
What property you can protect when filing for bankruptcy in Texas — homestead, personal property, vehicle, wage, and retirement exemptions.
Texas's exemption system
Texas requires use of state exemptions only — federal bankruptcy exemptions under §11 U.S.C. § 522(d) are not available. This means the specific Texas exemption amounts below control what you can protect.
Key Texas exemptions
Homestead §41.001–41.002
unlimited value (10 acres urban / 100 acres rural single / 200 acres rural family). Texas homestead exemption is unlimited in dollar value but limited by acreage. Property must be used as the debtor's principal residence. Includes improvements. This protects equity in your primary residence — if your home equity is within this limit, you keep the house in bankruptcy.
Personal property §42.001
$50,000 per single adult / $100,000 per family (aggregate of enumerated categories). Covers home furnishings, provisions, farming/ranching vehicles and implements, tools of trade, clothing, jewelry (limited), athletic and sporting equipment, two firearms, and other enumerated items. This covers household goods, furnishings, clothing, and everyday personal items.
Vehicle §42.001(a); §42.002(a)(9)
one motor vehicle per household member with a driver's license (included in personal property cap). This protects equity in your car — meaning the value of the vehicle minus what you owe on it.
Wages §42.001(b)(1)
current wages for personal services are exempt; unpaid commissions for personal services are exempt up to 25% of the aggregate personal property limits and are included in that aggregate (Tex. Prop. Code § 42.001(d)). This applies to wages already earned but not yet paid at the time of filing.
Retirement accounts §42.0021
ERISA-qualified plans, IRAs, Roth IRAs, Keogh plans, 401(k), 403(b), and state/county retirement systems (including TRS and ERS) are fully exempt. Retirement accounts receive strong protection in bankruptcy — both under state law and federal law §29 U.S.C. § 1056 (ERISA).
Tools of trade §42.002(a)(4)
tools, equipment, books, and apparatus of a trade or profession (included in $50,000/$100,000 personal property cap). This protects the equipment you need to earn a living.
Texas exemption comparison
| Homestead | Personal property | Wildcard | |
|---|---|---|---|
| What it protects | Equity in your primary residence §11 U.S.C. § 522 | Household goods, furnishings, clothing §11 U.S.C. § 522 | Any property not covered by other exemptions §11 U.S.C. § 522 |
| Texas limit | unlimited value (10 acres urban / 100 acres rural single / 200 acres rural family) §41.001–41.002 | $50,000 per single adult / $100,000 per family (aggregate of enumerated categories) §42.001 | Not available |
| Key limitation | Primary residence only — not investment property §11 U.S.C. § 522 | Individual item and aggregate caps may apply §11 U.S.C. § 522 | Total cap across all wildcard-claimed property §11 U.S.C. § 522 |
| Strategic value | Can be the largest exemption | Protects everyday necessities | Fills gaps left by specific exemptions |
How exemptions affect chapter choice
- In Chapter 7, non-exempt property can be liquidated by the trustee. High exemptions mean you keep more.
- In Chapter 13, the "best interests of creditors" test means your plan must pay unsecured creditors at least what they would have received if non-exempt assets were liquidated in Chapter 7. Higher exemptions can reduce your required plan payment.
Common exemption planning considerations
- Is your home equity within the homestead limit, or does it exceed the cap?
- Do you have a vehicle loan that reduces your equity below the exemption?
- Are there assets that could be reclassified or converted to exempt form before filing?
- Would waiting to file change the exemption calculation (e.g., recent large deposit, bonus, tax refund)?
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Frequently Asked Questions
General answers to common questions. Specific outcomes depend on your facts and timing.
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Related guides
- unlimited value (10 acres urban / 100 acres rural single / 200 acres rural family)
- Texas homestead exemption is unlimited in dollar value but limited by acreage. Property must be used as the debtor's principal residence. Includes improvements.
- $50,000 per single adult / $100,000 per family (aggregate of enumerated categories)
- current wages for personal services are exempt; unpaid commissions for personal services are exempt up to 25% of the aggregate personal property limits and are included in that aggregate (Tex. Prop. Code § 42.001(d))