Exemption property is property that your creditors are not allowed to take from you and sell it to pay off your debts. this is an ancient concept to look to the estate of the debtor instead of the body and the family. Texas allows you to choose in bankruptcy between which set of exemptions you would be most benefited. If you do not file bankruptcy, then you would only be able to use the Texas exemptions. Through the list of Texas bankruptcy exemptions and federal bankruptcy exemptions, you can see how the assets protected under Texas State and federal bankruptcy laws differ. Not sure which asset exemptions to take? Discuss your legal options with our bankruptcy attorney in Houston, Texas.
|
|
Texas Bankruptcy Exemptions |
|
|
ASSET |
EXEMPTION DESCRIPTION |
LAW SECTION |
|
Homestead |
Unlimited; property cannot exceed 10 acre in town, village, city or 100 acres (200 acres for families) elsewhere; sale proceeds exempt for 6 months after sale (need not occupy if not acquire another home, Property 41.003) May file homestead declaration |
Property 41.001, 41.002
Property 41.005 |
|
Personal Property |
Athletic and sporting equipment, including bicycles; 2 firearms; home furnishings, including family heirlooms; food; clothing; jewelry (not to exceed 25% of total exemption); 1 two-, three- or four wheeled motor vehicle per member of family or single adult who holds a driver’s license (or who operates vehicle for someone else who does not have a license); 2 horses, mules or donkeys and a saddle, blanket and bridle for each; 12 head of cattle; 60 head of other types of livestock; 120 fowl; and pets $50,000 total single adult ($100,000 for head of family) Burial plots Health aids |
Property 42.001, 42.002
Property 41.001 Property 42.001(b) (2) |
|
Insurance |
Church benefit plan benefits Fraternal benefit society benefits Life, health, accident or annuity benefits or monies, including policy proceeds and cash values to be paid or rendered to beneficiary or insured Life insurance present value if beneficiary is debtor or debtor’s dependent (see note under personal property) Retired public school employees group insurance Texas employee uniform group insurance Texas state college or university employee benefits |
1407a-6 885.316 Insurance 21.22 Property 42.002(a) (12) Insurance 3.50-4(11) (a) 3.50-4(11),1575.006 1551.011 Insurance 3.50-3(9) (a) |
|
Miscellaneous |
Property of business partnership |
6132b-25 |
|
Pensions |
County & district employees ERISA-qualified government or church benefits, including Keoghs and IRAs Firefighters IRAs to extent tax-deferred Judges Keoghs to extent tax-deferred Law enforcement officers’ survivors Municipal employees Police officers Retirement benefits to extent tax-deferred State employees Teachers |
Government 811.005 Property 42.0021 6243e(5), 6243e.1(12), 6243e.2(12) Property 42.0021 Government 811.005 Property 42.0021 6228f(8) 6243g, Government 811.005 6243d-1(17), 6243j(20),6243g-1(23B) Property 42.0021 Government 811.005 Government 811.005 |
|
Public Benefits |
Crime victims’ award Medical assistance Public assistance Unemployment compensation Workers’ compensation |
56.49 Hum. Res. 32.036 Hum. Res. 31.040 5221b-13 8308-4.07 |
|
Tools of Trade |
Farming or ranching vehicles and implements Tools, equipment (includes boat & motor vehicles) & books |
Property 42.002(a) (3) Property 42.002(a) (4) |
|
Wages |
Earned but unpaid wages Unpaid commissions to 75% (see personal property) |
Property 42.001(b) (1) Property 42.001(d) |
Federal Exemptions Supplementing Texas Exemptions
These federal exemptions can be used in conjunction with your Texas bankruptcy exemptions.
If you use the federal exemption set instead of your Texas exemptions then you cannot use these supplemental federal exemptions.
|
ASSET |
EXEMPTION DESCRIPTION |
LAW SECTION(United States Code) |
|
Retirement Benefits |
CIA employees Civil service employees Foreign service employees Military honor roll pensions Military service employees Railroad workers Social Security Veterans’ benefits Veterans’ medal of honor benefits |
50 § 4035 § 834622 § 406038 § 56210 § 1440
45 § 231m 42 § 407 38 § 3101 38 § 562 |
|
Survivor’s benefits |
Judges, US court directors, judicial |
28 § 37633 § 77510 § 1450 |
|
Death & Disability Benefits |
Government employees Longshoremen and harbor workers War risk hazard death or injury compensation |
5 § 813033 § 91642 § 1717 |
|
Miscellaneous |
Klamath Indian tribe benefits for
75% of earned but unpaid wages; bankruptcy judge may authorize |
25 § 543, 25 § 54510 § 103538 § 770(g)45 § 352(e)46 § 1110
46 § 1111 15 § 1673 |
Federal Bankruptcy Exemptions
In Texas, you may choose the following federal exemptions as opposed to the Texas exemptions. Married couples may double all exemptions.
|
ASSET |
EXEMPTION DESCRIPTION |
LAW SECTION |
|
Homestead |
Real property, including co-op or |
(11 USC § 522) (d)(1) |
|
Insurance |
Disability, illness or unemployment |
(d)(10)(C)(d)11)(C)(d)(8)(d)(7) |
|
Miscellaneous |
Alimony, child support needed for |
(d)(10(D) |
|
Pensions |
ERISA-qualified benefits needed for |
(d)(10)(E) |
|
Personal property |
Animals, crops, clothing, appliances, |
(d)(3)(d)(9)(d)(4)(d)(11)(E) (d)(2)(d)(11)(D)(d)(11)(B) |
|
Public benefits |
Crime victims’ compensation Public assistance Social Security Unemployment compensation Veterans’ benefits |
(d)(11)(A)(d)(10)(A)(d)(10)(A)(d)(10) (A)(d)(10)(A) |
|
Tools of trade |
Implements, books & tools of |
(d)(6) |
|
Wages |
NONE |
|
|
WILD CARD |
$1,325 of any property Up to $12,575 of unused homestead exemption, for any property |
(d)(5)(d)(5) |
