What money in my bank account is protected from creditors in Texas?

1. Federal Floor. Social Security, SSI, SSDI, VA, federal pensions, and OPM annuities are protected under 42 U.S.C. § 407 and 38 U.S.C. § 5301. The federal "two-month rule" of 31 C.F.R. Part 212 forces banks to lookback two months of direct-deposited federal benefits and protect them automatically.

2. State Wild-Card / Cash Exemption. Texas offers no general cash wild card. The famous $50,000/$100,000 personal-property exemption under Tex. Prop. Code § 42.001-.002 does not cover cash in a bank account once wages have been deposited. However, "current wages for personal services" are exempt under Tex. Const. art. XVI § 28 and Prop. Code § 42.001(b)(1), and Texas courts protect traceable wages held briefly in an account.

3. Other Source-Specific Exemptions. TANF, SNAP, unemployment (Tex. Lab. Code § 207.075), workers' comp (Lab. Code § 408.201), child support, crime-victim compensation, and disability insurance proceeds are all exempt.

4. Retirement Accounts. Tex. Prop. Code § 42.0021 provides expansive protection for ERISA plans, IRAs, Roth IRAs, SEPs, 529 plans, and Health Savings Accounts — among the broadest in the nation.

5. Joint Accounts. Texas is a community-property state; community funds are reachable for either spouse's debt, but separate property of the non-debtor spouse is not.

6. Claim of Exemption Process. No fixed statutory window. Debtor files a motion in the issuing court to release exempt funds; bank holds funds pending order. Practitioners file within days of receiving notice.

7. Burden of Proof. Debtor must trace exempt origin through bank statements and deposit records.

8. Penalty for Wrongful Garnishment. Tex. R. Civ. P. 684 requires creditor's bond; debtor may recover damages from the bond.

9. Bankruptcy Interplay. Texas debtors may elect state or federal exemptions; Chapter 7 trustee reaches non-exempt cash, Chapter 13 lets debtor retain it.

This is legal information, not legal advice.