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Bankruptcy and Judgments: What are the State Exemptions for Texas?

Texas has very favorable exemptions for the consumer. You can think of exemptions as those items you are allowed to keep if you are sued by a creditor who obtains a judgment against you. A creditor can’t force you to sell your home in Texas, and in true Texas spirit, they can’t force you to sell your guns either. There is one major exception to the liberal rules for judgment exemptions: a homestead isn’t protected if you are sued by the federal government, so make sure you pay your income taxes!

  1. Homestead Exemption: one homestead in its entirety is protected: a city homestead up to 10 acres or a rural homestead up to two hundred acres.
  2. Personal property: $30,000 of fair market value for one person, or $60,000 for a family. This includes: home furnishings, including family heirlooms; food; farming or ranching vehicles and implements; tools, equipment, books, and apparatus, including boats and motor vehicles used in a trade or profession; clothing; jewelry up to $7,500 (person) or $15,000(family); two firearms; athletic and sporting equipment, including bicycles; one motor vehicle per person; two horses, mules, or donkeys and a saddle, blanket, and bridle for each; 12 head of cattle; 60 head of other type of livestock; and 120 fowl; household pets.
  3. Wages: current wages.
  4. Commissions: unpaid commissions up to the aggregate limits ($30,000/$60,000).
  5. Medical: prescribed health aids.
  6. Life insurance policy: proceeds and cash value.
  7. Stocks (as a work bonus), pension, profit-sharing, IRA, or annuity: exempt.

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