Texas law protects key assets from most judgment creditors: your homestead, current wages, federal benefits, most retirement accounts, and specified personal property capped at $50,000 for single adults or $100,000 for families. Non-exempt property may be levied or frozen after judgment.
Quick Answer: What property is exempt from judgment creditors in Texas?
In Texas, homesteads, current wages, most retirement accounts, life insurance/annuities, certain federal benefits, and personal property up to $50,000 single/$100,000 family are exempt from most judgment creditors; non-exempt assets remain reachable.
- Claim Texas homestead; track six-month sale-proceeds window.
- File exemption claim fast; request hearing within 14 days.
- Keep wages/benefits separate; trace two months of direct deposits.
Need-to-Know Highlights
- Texas homestead is protected by acreage limits; no general dollar cap.
- Personal property cap: $50k single, $100k family, categories defined by statute.
- Current wages exempt from garnishment; protection ends once deposited.
- Two months of directly deposited federal benefits are automatically shielded.
- Retirement accounts and insurance cash values are broadly exempt by statute.
Texas Homestead Exemption — What Creditors Can’t Take
Texas shields your primary residence from most judgment creditors, imposing acreage limits but no general dollar cap on value. The homestead is considered protected property under Texas law, meaning it is generally shielded from creditor claims. As a result, the homestead exemption serves as a primary defense against asset seizure by creditors:
Texas homestead limits and liens
- Firstly, urban homestead: up to 10 acres (single or family).
- Secondly, rural homestead: up to 100 acres (single) or 200 acres (family).
- Likewise, limited lien exceptions still apply (e.g., purchase-money mortgages, property and income taxes, home-equity loans, and improvement/mechanic’s liens). (Tex. Prop. Code ch. 41; Tex. Const. art. XVI, § 28; see Texas Attorney General consumer guidance.)
Sale proceeds from a homestead remain exempt for six months if you reinvest them in a new homestead within that window. (Tex. Prop. Code § 41.001(c).)
Example: A judge cannot order the sale of a Dallas homestead to satisfy a credit‑card judgment.
Practical Steps
Texas homestead documentation & proceeds timing
- Firstly, keep proof of principal residence (driver’s license address, voter registration, tax returns, utility bills).
- Also, if selling, calendar the six-month proceeds window and reinvest on time to preserve protection. (Tex. Prop. Code § 41.001(c).)
Personal Property Exemptions — The $50,000 / $100,000 Cap Explained
Texas protects broad categories of personal property up to $50,000 (for a single adult) or $100,000 (for a family) in aggregate fair market value, excluding valid liens. Importantly, the total value of all exempt personal property must not exceed this cap. (Tex. Prop. Code §§ 42.001–.002.)
Covered property includes home furnishings (including family heirlooms), work-related tools of the trade, jewelry (capped at 25% of the aggregate limit), two firearms, sporting equipment, household pets and health aids, specified livestock and forage, and a vehicle for each member of the household (one motor vehicle per licensed household member, or for a non-licensed member who relies on a driver). (Tex. Prop. Code § 42.002.)
Scenario
For example, a Plano family of four may exempt four vehicles if each member holds a driver’s license (or a non-licensed member relies on a driver). Additionally, certain assets such as vehicles and furnishings are protected under the exemption as long as the total value does not exceed the $100,000 family cap. They can also protect furnishings and tools—so long as the total stays within the $100,000 family cap. (Tex. Prop. Code § 42.002.)
| Exemption Type | Texas Protection Limit | Key Details |
|---|---|---|
| Homestead (Urban) | Up to 10 acres | Applies to a family or single adult’s primary residence. |
| Homestead (Rural) | Up to 100 acres (single) / 200 acres (family) | No dollar value limit on the property itself. |
| Personal Property | $50,000 (single) / $100,000 (family) | Aggregate fair market value for all covered items. |
| Current Wages | 100% Exempt | Protection does not apply once wages are deposited in a bank. |
| Retirement Accounts | Fully Exempt | Includes 401(k)s, IRAs, and other qualified plans. |
Wages, Benefits & Bank Accounts — Stops to Garnishment and Freezes
Current wages for personal services are exempt from wage garnishment in Texas, with limited exceptions (such as court ordered child support, spousal support, certain federal debts like taxes or some student loans). (Tex. Const. art. XVI, § 28; Tex. Civ. Prac. & Rem. Code § 63.004; see Texas Law Help.)
Federal benefits—such as social security benefits, veterans administration benefits, workers compensation benefits, spousal support, and court ordered child support—receive automatic two‑month protection when directly deposited. Banks must identify and protect a “protected amount.” Amounts above that or commingled funds may require tracing and proof in court. (31 C.F.R. pt. 212 (eCFR); see CFPB and State Bar of Texas practice guidance.) Certain benefits and accounts, including those for needy families, temporary assistance, and other exempt assets, are also exempt from creditors.
Additionally, some bank accounts, such as savings accounts and health savings accounts, may be protected under certain circumstances and considered exempt from creditors.
Bank Freeze Playbook
- Firstly, act fast: file a Protected/Exempt Property Claim and a motion to dissolve the garnishment; request a prompt hearing.
- Also, trace deposits: bring benefit award letters and bank statements showing direct deposits and dates.
- Likewise, don’t commingle: keep exempt benefits and wages in separate accounts when possible. (State Bar of Texas; 31 C.F.R. pt. 212.)
See our full guide about what to do when a creditor freezes your bank account.
Retirement Accounts & Insurance — Long‑Term Security
Most tax-advantaged savings are exempt, including tax-deferred retirement accounts such as 401(k), 403(b), pensions, IRAs (including Roth), as well as HSAs, 529 college savings plans, education savings accounts, and ABLE accounts. Importantly, retirement savings in these accounts are shielded from asset seizure, and retirement benefits are generally protected from creditors. Moreover, distributions generally keep protection for 60 days, while rollovers maintain exemption when redeposited within that period. (Tex. Prop. Code § 42.0021, including distribution protection.)
In addition, life insurance and annuity cash values are protected separately under the Insurance Code. (Tex. Ins. Code ch. 1108.)
Example
A Denton teacher’s 403(b) and Roth IRA remain exempt from a judgment creditor. A rollover check redeposited within 60 days stays protected. (Tex. Prop. Code § 42.0021(c).)
Inherited Property & Probate Protections — What Creditors Can Reach
During estate administration, courts may set aside exempt personal property and the probate homestead for a surviving spouse and minor children, thereby shielding those assets from most general creditor claims. Specifically, only certain debtor’s assets can be reached by creditors during probate, while exempt property remains protected from being treated as seized property by most creditors. Furthermore, heirs generally don’t inherit debts unless they co-signed or otherwise have independent liability—creditors are usually paid from the real estate. (Tex. Estates Code ch. 353; see Texas State Law Library Guides; Texas Law Help)
Scenario
A surviving spouse in Collin County remains in the probate homestead during administration; unsecured creditors cannot force a sale to satisfy the decedent’s medical debts. (Tex. Estates Code ch. 353; State Law Library Guides.)
Are You Judgment Proof? How Texas Protections Work in Real Life
Many Texans are temporarily judgment proof when income and assets fall within exemption categories—e.g., homestead, current wages, Social Security, unemployment benefits—often due to financial difficulties. A debt judgment is a court order stating you owe a specific amount, which can lead to debt collection efforts by creditors. However, exemptions limit collection options, and the status can change if finances improve. If a creditor wrongfully seizes exempt property after a debt judgment, the debtor may need to take legal action to recover it. Note that certain debts, such as child support or taxes, may not be subject to the same exemptions. (See Texas Law Help.)
Common Mistakes We See
- Firstly, ignoring post‑judgment papers and missing exemption deadlines.
- Secondly, commingling exempt and non‑exempt funds in one bank account. (State Bar of Texas guidance.)
- Similarly, selling a homestead and waiting past six months to reinvest proceeds. (Tex. Prop. Code § 41.001(c).)
How to Claim Your Exemptions (Step‑by‑Step)
- Firstly, gather proof: paystubs, benefit award letters, bank statements, titles/registrations, appraisals/valuations, and proof of direct deposit.
- Also, file: a Protected/Exempt Property Claim; if your account is frozen, file a motion to dissolve the garnishment; set a hearing. If a creditor takes protected property, immediately file a claim and request a hearing to recover your exempt assets.
- Likewise, bring: itemized fair market values, direct‑deposit records, and homestead documentation.
We help Texans statewide move fast to assert exemptions and unfreeze accounts. Free consultation: (888) 584‑9614.
Case Study: Protecting Social Security and Unfreezing a Bank Account
A client called us in a panic, facing a financial nightmare. A creditor had frozen her bank account without warning, locking up her recently deposited Social Security check and the wages she needed for rent. She was overwhelmed and felt powerless to fight back.
We immediately took strategic action. After tracing the funds in her account, we confirmed they were protected from garnishment under the Texas Property Code. We then prepared and filed an aggressive motion to dissolve the writ of garnishment, presenting the court with sworn evidence that the creditor had seized legally exempt money.
The result was swift and decisive. The court ordered the creditor to release the funds, and our client regained full access to her account within days. The relief she felt was immense.
The Takeaway: This case is a crucial reminder that Texas exemptions are powerful rights, but they are not automatic. You must formally assert them. If a creditor freezes your assets, taking immediate and knowledgeable legal action is the key to protecting your livelihood.
Texas Case‑Law Spotlight
Norris v. Thomas, 215 S.W.3d 851 (Tex. 2007) — “A Boat Isn’t a Homestead”
The Texas Supreme Court ruled that a boat used as a primary residence fails to qualify for homestead protection because it lacks attachment to land. Texas law requires homestead status to be based on land, reflecting constitutional and statutory mandates. Furthermore, the Court’s ruling clarifies that the powerful homestead shield follows real property and improvements—not movable personal property.
Why it matters: Families considering unconventional dwellings must meet the legal definition of a homestead; simply “living” somewhere is not enough for exemption protection.
What Texas Courts Consider (When Creditors Challenge Exemptions)
- Firstly, whether property fits Tex. Prop. Code § 42.002 categories and stays under the cap (Tex. Prop. Code §§ 42.001–.002).
- Also, proof of principal residence for homestead, and compliance with the 6‑month proceeds rule after a sale (Tex. Prop. Code § 41.001(c)).
- Likewise, clear tracing of directly deposited federal benefits and current wages when a bank account is frozen (31 C.F.R. pt. 212; Tex. Civ. Prac. & Rem. Code § 63.004).
FAQs: What Property Is Exempt from Debt Collectors in Texas
Can debt collectors garnish wages in Texas?
Can credit card companies take my house in Texas?
What happens to my 401k if I get sued in Texas?
How long do creditors have to collect a debt in Texas?
Additionally, under certain circumstances—such as entering into an installment agreement or filing for bankruptcy—the collection period may be extended.
What happens to my bank account after a judgment in Texas?
Can my Social Security be garnished in Texas?
Child support and alimony
Federal student loans
IRS tax debts
Only certain debts, like federal taxes or child support, can result in garnishment of Social Security benefits. Keep benefits in a separate account for easier protection claims.
How much personal property can I keep if sued in Texas?
Firstly, one vehicle per licensed household member
Secondly, home furnishings and heirlooms
Also, two firearms and sporting equipment
Finally, tools of trade and jewelry (up to 25% of cap)
Can child support take exempt property in Texas?
Is my Texas homestead completely protected from creditors?
Do homestead sale proceeds stay exempt, and for how long?
How many vehicles can my family protect in Texas?
Can bankruptcy affect my Texas homestead exemption?
Conclusion & Next Steps
Texas law offers robust protections for homesteads, current wages, federal benefits, retirement accounts, and a wide range of personal property; however, timing, documentation, and tracing are critical to achieving favorable outcomes. Therefore, if your bank account is frozen or a creditor is pressing, move quickly and present the right proof. (Tex. Prop. Code chs. 41–42; 31 C.F.R. pt. 21.
Our debt lawsuit defense attorneys help Texans statewide assert exemptions, dissolve improper freezes, and protect what matters most—your home, your income, and your future. Free consultation: (888) 584‑9614.
Disclaimer: This article provides general information under Texas and federal law and is not legal advice for any specific person or case. Legal outcomes vary. For more information consult an attorney about your situation.
