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1-281-DIVORCE (348-6723)

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1-281-DIVORCE (348-6723)

Texas Bankruptcy Exemptions State & Federal

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
center directors, supreme court chief justice administrators Lighthouse workers Military service

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
Indians residing in Oregon Military deposits in savings accounts while on permanent duty
outside continental U.S.Military group life insurance Railroad workers’ unemployment insurance Seamen’s clothing Seamen’s wages (while at sea) pursuant to a written contract

 

75% of earned but unpaid wages; bankruptcy judge may authorize
more for low-income debtors

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
mobile home, to $25,150; unused portion of homestead to $12,575
may be applied to any property

(11 USC § 522)

(d)(1)

Insurance

Disability, illness or unemployment
benefits Life insurance payments for persons who depend on debtor, needed
for support Life insurance policy with loan value, in accrued dividends or
interest, to $13,400 Unmatured life insurance contract, except credit insurance policy

(d)(10)(C)(d)11)(C)(d)(8)(d)(7)

Miscellaneous

Alimony, child support needed for
support

(d)(10(D)

Pensions

ERISA-qualified benefits needed for
support

(d)(10)(E)

Personal property

Animals, crops, clothing, appliances,
books, furnishings, household goods, musical instruments to $625.00 
per item, $13,400 total Health aids Jewelry to $1,700 Lost earnings payments Motor vehicle to $4,000 Personal injury recoveries to $25,150 (not to include pain and
suffering or pecuniary loss)Wrongful death recoveries for person debtor depended on

(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
trade to $2,525

(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)