Texas Bankruptcy
Exemption Calculator

Texas has opted out of the federal bankruptcy exemptions, meaning debtors filing in Texas must use the state's own exemption schedule. Bankruptcy exemptions determine which assets you can keep when filing Chapter 7 bankruptcy or how much equity is protected in Chapter 13.

The specific dollar limits in Texas directly determine whether a Chapter 7 trustee can liquidate your home, car, or savings — and how much unsecured creditors must receive in a Chapter 13 plan.

Exemptions protect specific categories of property up to defined dollar limits: your home (homestead), vehicles, personal belongings, wages, retirement accounts, and tools needed for your occupation. If the equity in an asset exceeds the applicable exemption, a Chapter 7 trustee may sell the asset, pay you the exempt amount, and distribute the remainder to creditors.

In Chapter 13, exemptions determine the minimum amount your repayment plan must pay unsecured creditors.

Texas's exemption amounts can differ substantially from neighboring states and from the federal baseline. Texas offers one of the most protective homestead exemptions in the nation, with unlimited dollar value protection.

These amounts are periodically adjusted, so confirming the current figures with a bankruptcy attorney before filing is essential.

• Texas exemption statutes are found at Tex. Prop. Code §§ 41.001 et seq. (homestead) and 42.001 et seq. (personal property). Texas has opted out of federal exemptions. Non-obvious Texas exemptions include: life insurance cash values (fully exempt under Tex. Ins. Code § 1108.051 — one of the strongest life insurance exemptions nationally)
• annuity benefits (fully exempt under Tex. Ins. Code § 1108.001)
• professionally prescribed health aids
• a burial plot (exempt)
• one motor vehicle per licensed household member (included in the aggregate personal property cap)
• and health savings account contributions (exempt). Texas wages are 100% exempt from garnishment in most circumstances. The $100,000 (single) / $200,000 (family) aggregate personal property cap covers nearly all personal possessions. Texas is a community property state — both spouses' income is considered even if only one files.

The homestead exemption in Texas protects Unlimited value (up to 10 acres urban; 100 acres rural single / 200 acres family) of equity in your primary residence from creditors in bankruptcy. Unlimited dollar value with acreage limits.

One of the strongest homestead exemptions in the nation. Constitutional exemption.

Must be principal residence. 730-day residency requirement under federal law.

Because Texas provides unlimited homestead protection, debtors who own their home outright or have significant equity may be able to file Chapter 7 and keep their home regardless of its value — as long as acreage limits are met. This makes Texas one of the most debtor-friendly states for homeowners.

Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), debtors who acquired their homestead within 1,215 days (about 3.3 years) before filing are limited to a $201,050 homestead exemption regardless of state law. This federal cap prevents debtors from moving to states with generous homestead exemptions shortly before filing.

Additionally, if a debtor has been convicted of securities violations or certain felonies, the homestead exemption may be further limited.

Texas allows a motor vehicle exemption of One motor vehicle per licensed household member (no separate dollar cap; included in $100,000/$200,000 aggregate personal property exemption). This protects equity in your vehicle — not the vehicle's full value.

If you owe $15,000 on a car worth $20,000, your equity is $5,000. If your vehicle equity is within the exemption amount, you keep the car.

If it exceeds the exemption, the trustee may sell the vehicle, pay off the loan, pay you the exempt amount, and distribute the rest to creditors.

For personal property, Texas provides the following protections: $100,000 (single); $200,000 (family) in aggregate personal property. These exemptions cover essential household items such as furniture, appliances, clothing, and similar necessities.

In practice, Chapter 7 trustees rarely seize ordinary household goods because the cost of seizure and sale typically exceeds the resale value. However, high-value items like art collections, antiques, or designer goods may attract trustee attention.

Tools of the trade — equipment, instruments, and supplies needed for your occupation — are protected up to Included in aggregate personal property exemption ($100,000/$200,000) in Texas. This exemption is critical for self-employed individuals, tradespeople, and professionals whose livelihood depends on specialized equipment.

The exemption typically covers hand tools, machinery, professional libraries, office equipment, and similar items directly used in your work.

Texas does not provide a general wildcard exemption. This means every asset must fit within a specific exemption category to be protected.

Debtors in Texas must plan more carefully to ensure all property is covered by the applicable category-specific exemptions.

Without a wildcard, Texas debtors must rely entirely on category-specific exemptions. Strategic pre-bankruptcy planning — such as converting non-exempt assets into exempt forms — becomes more important in states without a wildcard.

Married couples filing jointly may be able to double exemption amounts (called "stacking") depending on Texas law. In some states, each spouse can claim the full exemption amount, effectively doubling protection.

In others, the exemption amounts are per-household rather than per-person. A bankruptcy attorney can advise whether doubling is available for your specific situation in Texas.

Retirement accounts receive strong protection in Texas bankruptcy cases. ERISA-qualified plans — including 401(k), 403(b), profit-sharing plans, and defined benefit pensions — are fully exempt from creditor claims under both federal and state law with no dollar cap.

This is one of the most powerful protections available to bankruptcy filers.

Traditional and Roth IRAs are exempt up to $1,711,975 (as of 2024, adjusted every 3 years) under 11 U.S.C. §522(n).

This federal cap applies regardless of state exemption choices. SEP-IRAs and SIMPLE IRAs that receive only employer contributions are treated like ERISA plans and receive unlimited protection.

Inherited IRAs, however, are NOT protected in bankruptcy following the Supreme Court's decision in Clark v. Rameker (2014).

Wage protection in Texas: Earned but unpaid wages 100% exempt; current wages exempt from garnishment. This exemption protects your paycheck from garnishment by the bankruptcy trustee and general creditors.

The wage exemption typically applies to earned but unpaid wages, meaning money you have already earned but not yet received. Once wages are deposited into a bank account, they may lose their exempt status unless you can trace them.

Public benefits are also protected: Unemployment, workers' comp, Social Security, TANF, veterans' benefits exempt.

Pre-bankruptcy planning in Texas involves legally structuring your assets to maximize the protection offered by available exemptions. Since Texas requires use of state exemptions, your planning focuses on ensuring assets are held in exempt forms and that equity in each category stays within the exemption limits.

Common legitimate pre-bankruptcy strategies include: paying down a mortgage to increase protected home equity (where the homestead exemption allows it), contributing to retirement accounts (which are fully protected), converting non-exempt assets to exempt forms (such as using cash to prepay exempt insurance policies), and repairing or maintaining exempt property like your vehicle or home. These conversions must be done in good faith and well in advance of filing.

Courts scrutinize large asset conversions made shortly before bankruptcy as potential fraud.

Timing matters significantly. Federal law imposes a means test for Chapter 7 eligibility, and income is measured over the 6 months before filing.

Even with Texas's unlimited homestead, the BAPCPA's 1,215-day residency requirement applies — if you haven't lived in Texas for at least 730 days, you may be required to use your prior state's exemptions. Consulting with a Texas bankruptcy attorney 3–6 months before filing allows time to implement legitimate planning strategies.

Bankruptcy exemptions are one piece of a larger financial picture. The Texas Chapter 7 Means Test Calculator determines whether your income qualifies you for Chapter 7 discharge.

If you don't qualify for Chapter 7, the Texas Chapter 13 Payment Plan Calculator estimates your monthly repayment plan. And if your home equity is at stake, the Texas Homestead Exemption Calculator breaks down exactly how much equity is protected under Texas law.