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Bankruptcy allows you to keep your property and possessions, as long as those items are exempt under the law. Texas has a liberal exemption list. There is also a Federal exemption list. You are allowed to select either one. If you have property that is non-exempt, you may have to liquidate or pay back the value of the non-exempt property.
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Texas Bankruptcy Exemption
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Homestead
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No limit
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Proceeds from Home Sale
Personal property of a debtor which may be exempt from garnishment, attachment, execution or other seizure exclusive of liens, security interests, or other encumbrances. If it is provided for a family the limit is $60,000.
Personal Property to include Reasonably necessary clothing, household goods, furnishings, household appliances.
Motor Vehicle for each adult (subject to combined personal property limit of 60,000 for family, $30,000 for single person
Jewelry
Current Wages
Pensions
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100% for six months
$30,000
$30,000 for single. $60,000 for family.
$30,000 for single. $60,000 for family.
Up to certain value
100%, except for enforcement of child support.
Most Pensions are exempt.
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NOTE: These are the major bankruptcy exemptions.
Check with your bankruptcy lawyer for a full exemptions list
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Federal Bankruptcy Exemptions
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Homestead
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$20,200*
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Life insurance policy with loan value, in accrued dividends or interest
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$9,850
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$475 per item in any household goods up to a total of $9,850;
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$9,850
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Jewelry
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$1,225
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Motor vehicle
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$3,225
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Personal injury compensation payments
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$18,450
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Tools of trade - books and equipment
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$1,850
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Wild Card • $925 of any property
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$925
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* unused portion of homestead to $10,125 may be applied to any property
Property that is typically non-exempt.
- A second home or vacation home.
- Your second car. (Note: you and your spouse can both have one car, but you can not individually have two cars.)
- collections of stamps, coins and other valuable items
- Cash, bank accounts, stocks, bonds, and other investments
NOTE: Check with a bankruptcy lawyer to verify all non-exempt property.
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