The list below details the property you can exempt or protect from creditors when you file bankruptcy in Texas. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to keep this exempted property after you file bankruptcy. In Texas, you also have the choice of using the Federal Exemption statutes instead of your Texas exemptions.

The Texas Homestead Exemption

Texas offers an unlimited homestead exemption for a residence on 10 acres or less in a city, town or village or 100 acres or less in the country (this doubles to 200 for families). If you sell your house, the proceeds are exempt for 6 months after the sale under this exemption. (Tex. Prop. Code Ann. 41.001, 41.002 and 41.003. See also the Texas Constitution, Article 16, Sections 50 and 51.)

The Texas Motor Vehicle Exemption

The Texas motor vehicle exemption is also generous; the law allows you to exempt the entire value of one motor vehicle per licensed household member. If you have a household member who does not have a license, you can still exempt that vehicle if the unlicensed person relies on someone else to operate the vehicle. Tex. Prop. Code Ann. 41.002(a)(9).

Texas Personal Property Exemptions

Texas provides the following exemptions for personal property (property that is not real estate). As of 2020, the property you exempt under any of these items cannot exceed a total of $100,000; $50,000 if you are a single adult without a family. For example, if all your personal property is worth $115,000, you can only exempt $100,000 of it. The remaining $15,000 will be nonexempt (all citations are to the Tex. Prop. Code Ann.):

  • Up to two (2) firearms. § 42.002 (a)(7).
  • Athletic and sporting equipment, including bicycles. § 42.002 (a)(8).
  • Bibles or other books containing sacred religious writings. § 42.001 (b)(4).
  • Home furnishings including family heirlooms. § 42.002 (a)(1).
  • Jewelry (limited to 25% of total exemption – so as of 2012, jewelry can be exempted up to $15,000). § 42.002 (a)(6).
  • Animals, including:
    • pets and domestic animals plus their food
    • 2 horses, mules, or donkeys, plus tack
    • 12 head of cattle
    • 60 head of other livestock, or
    • 120 fowl. § 42.002 (a)(10),(11).
  • Clothing and food. § 42.002 (a)(2),(5).
  • Health savings accounts. § 42.0021.

Burial plots (§ 41.001) and health aids such as wheelchairs, canes and hearing aids (§ 42.001 (b)(2)).

Pensions and Retirement Accounts

Under the bankruptcy law, most tax-exempt pensions and retirement accounts are exempt, even if you choose the Texas exemptions instead of the federal exemptions. These pensions and accounts include certain pensions or retirement funds that receive special tax exemptions under certain sections of the U.S. Tax Code. You can check with your fund to find out if it qualifies as tax exempt.

Additionally, Texas provides that the following pensions and retirement accounts are exempt under Texas law:

  • County and district employee retirement and pension benefits. Tex. Gov’t. Code Ann. § 811.006.
  • ERISA-qualified government or church benefits, including Keoghs, IRAs and Roth IRAs. Tex. Prop. Code Ann. § 42.0021.
  • Firefighter retirement and pension benefits. Tex. Civ. Stat. Ann. Art. 6243e.1 (1.04), Tex. Civ. Stat. Ann. Art. 6243e (5), Tex. Civ. Stat. Ann. Art. 6243b (15), Tex. Civ. Stat. Ann. Art. 6243a-1 (8.03), Tex. Civ. Stat. Ann. Art. 6243e (5).
  • Judges’ retirement and pension benefits. Tex. Gov’t. Code Ann. § 831.004.
  • Law enforcement officers, firefighters, emergency medical personnel survivors benefits. Tex. Gov’t. Code Ann. § 615.005.
  • Municipal employees, elected officials and state employees’ pension and retirement benefits. Tex. Gov’t. Code Ann. § 811.005, Tex. Civ. Stat. Ann. Art. 6243h (22).
  • Police officer pension and retirement benefits. Tex. Civ. Stat. Ann. Art. 6243d-1 (17), Tex. Civ. Stat. Ann. Art. 6243b (15), Tex. Civ. Stat. Ann. Art. 6243a-1 (8.03), Tex. Civ. Stat. Ann. Art. 6243j (20).
  • Retirement benefits to the extent they are tax-deferred. Tex. Prop. Code Ann. § 42.0021.
  • Teacher retirement and pension benefits. Tex. Gov’t. Code Ann. § 821.005.

Insurance Exemptions

  • Fraternal benefit society benefits (such as those provided by the Freemasons, the Knights of Columbus and the Elks). Tex. Ins. Code Ann. § 885.316.
  • Life, health, accident, or annuity benefits, including any money, policy proceeds or cash value due to or paid to beneficiary or insured. Tex. Ins. Code Ann. § 1108.051.
  • Texas employee uniform group insurance. Tex. Ins. Code Ann. § 1551.011.
  • Texas public school employees’ group insurance. Tex. Ins. Code Ann. § 1575.006.
  • Texas state college or university employee benefits. Tex. Ins. Code Ann. § 1601.008.

This list represents the most commonly used exemptions for debtors who file bankruptcy in Texas. Because exemption amounts change periodically and you may have property not covered by this summary, we strongly recommend that you review the current Texas law with an attorney before making a decision to file bankruptcy.