Texas Bankruptcy Exemptions
What property can you keep when filing Chapter 7 in Texas?
Federal exemption option available: Texas allows debtors to choose between state exemptions or the federal bankruptcy exemption schedule. You must pick one complete set.
Texas Homestead Protection
Unlimited
Texas offers an unlimited homestead exemption. You can protect your full home equity when filing bankruptcy, subject to the state's acreage requirements.
Texas Exemption Table
2025/2026 figures — Chapter 7 bankruptcy
How to Claim Exemptions in Texas
To claim your Texas bankruptcy exemptions, you must list each exempt asset on Schedule C of your bankruptcy petition. Texas offers an unlimited homestead exemption (up to 10 acres urban / 100 acres rural for a family), and you may also choose the federal bankruptcy exemptions instead — you cannot mix and match. A bankruptcy preparer can help you determine which set of exemptions better protects your assets — all claims are subject to court approval.
How does Texas compare to other states?
Use the side-by-side comparison tool to see which state offers more protection for your assets.
Frequently Asked Questions
How much home equity can I protect in Texas bankruptcy?
Texas offers an unlimited homestead exemption, meaning you can protect your full home equity regardless of value (subject to acreage requirements). This is one of the most debtor-friendly homestead protections in the country.
Can I keep my car when filing bankruptcy in Texas?
Texas's vehicle exemption protects up to $50,000 in car equity. If your car is worth less than this (or your equity after the loan balance is within this limit), you can typically keep it. If you're financing the car, you may also reaffirm the debt to keep it regardless of equity.
Are retirement accounts protected in Texas bankruptcy?
Yes — Texas protects Unlimited in qualified retirement accounts. This includes 401(k), 403(b), IRA, and pension accounts. Retirement assets are among the strongest-protected assets in bankruptcy across all 50 states.
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Non-Attorney Notice: JustiPal™ is a document preparation service — not a law firm. Exemption amounts shown are for educational purposes and reflect general 2025/2026 figures. Individual results depend on your specific assets, equity calculations, and applicable state law. Consult a licensed bankruptcy attorney for legal advice specific to your situation.