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Texas Chapter 7 Bankruptcy Exemptions – A Quick Overview

Texas is a state that offers among the most generous of bankruptcy exemptions. Here is a quick overview of which of your assets can be protected during a Chapter 7 bankruptcy case.


Texas allows you to exempt an unlimited amount of equity from your homestead (primary residence). Meaning that even if you have a million-dollar home, you don’t have to worry about its foreclosure to get your debt discharged. Compare this to the Federal exemptions, which is currently capped at only $25,150 – be it for home or vehicle.

However, there is a limit to the size of the homestead, currently capped at 10 acres in an urban area and 100 acres in a rural area.

Motor Vehicles

You can exempt ONE vehicle of any equity from your bankruptcy case for every driver with a license in your household. That means if you have three cars and both you and your partner, as well as one of your children, hold a license, you can all of them exempted in your Chapter 7 bankruptcy case.

And even if a household member isn’t a licensed driver, an exemption may still apply provided that said member “relies on another person to operate the vehicle” for them.

Other Personal Property

Other properties and assets that can be exempted include:

  • Livestock up to varying amount depending on species (e.g. 12 cattle or 120 fowl)
  • Home furnishings
  • family heirlooms
  • Jewelry
  • two firearms
  • tools used in a trade or profession
  • Wearing Apparel

For more information or any other bankruptcy queries, call 512-640-3440.

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