What are bankruptcy exemptions in Texas?

Texas has historically been a debtor-friendly haven because of its constitutional homestead protection.

1. Choice Between State and Federal

Unlike California, Texas allows debtors to choose between Texas state exemptions and federal exemptions in 11 U.S.C. § 522(d). Most Texas debtors choose state exemptions because of the unlimited homestead.

2. Homestead — Tex. Const. art. XVI, § 50; Tex. Prop. Code § 41.001-.002

Unlimited in dollar value, subject to acreage limits:

Urban homestead: up to 10 acres (single or family).

Rural homestead: up to 100 acres single or 200 acres for a family.

The homestead protects against general creditors but not:

Purchase money mortgages,

Taxes,

Mechanic's/materialman's liens for work on the homestead,

Owelty of partition,

Reverse mortgages,

Home equity loans (with strict constitutional requirements).

Note: 11 U.S.C. § 522(p) caps the federal homestead at $214,000 if the home was acquired within 1,215 days before filing — this limit applies in bankruptcy regardless of Texas's unlimited state homestead.

3. Personal Property — Prop. Code § 42.001

Aggregate cap:

$100,000 for a family (or $50,000 single adult)

Specific categories under § 42.002:

Home furnishings, family heirlooms, food.

Clothing.

Jewelry (limited to 25% of total exemption).

Two firearms.

Athletic and sporting equipment, including bicycles.

Two horses, mules, or donkeys; 12 head of cattle; 60 fowls.

A motor vehicle for each member of the family with a driver's license.

Tools, equipment, books, vehicles, and apparatus used in trade.

Pets and domesticated animals.

4. Wages — Prop. Code § 42.001(b)(1)

Unpaid commissions are fully exempt up to the personal property cap.

5. Retirement Accounts — Prop. Code § 42.0021

401(k), IRAs, pensions, profit-sharing — fully exempt.

6. Insurance — Insurance Code § 1108.051

Cash surrender value of life insurance and annuities fully exempt.

7. College Savings Plans

529 plans fully exempt — Prop. Code § 42.0022.

8. Domicile Requirement

2-year rule under 11 U.S.C. § 522(b)(3) applies.

9. Federal Exemption Comparison

Federal homestead: $27,900. Texas state almost always better unless Texan has limited equity and significant non-homestead assets where federal wildcard helps.

This is legal information, not legal advice.