You have a choice of exemptions when filing bankruptcy. You can file according to the federal exemptions or according to Texas. Texas is debtor friendly and rather generous with exemptions.
Your main home you occupy has an unlimited homestead exemption, so long as your homestead is not over 10 acres for an urban family home and including any improvements. If you live in a rural area with a family you are entitled to a 200-acre exemption, and 100 acres if you are single. The exception to this is a claim on behalf of a mortgage lender, IRS, property taxes if you owe them and for homeowners associations. If you sell your home the proceeds of the sale are exempt for six months post sale.
If your property acreage is larger than what is outlined above by the homestead exemption, you may need to file a homestead declaration.
Personal Property – What about my pet? My tools? My livestock?
Personal property belonging to a single person has an exemption of up to $50,000. Families have an exemption of up to $100,000.
Included is the list of exemptions per the Texas statute:
Home furnishings including heirlooms
Jewelry not over $25,000
Sporting or athletic equipment
A two, three or four wheeled motor vehicles for each family member or single adult with a valid driver's license or one who relies on someone with a valid driver's license for their benefit
Farm and ranch motor vehicles and their implements
Tools, books, equipment, boats and motor vehicles for trade or professions
Animals including food to feed them:
The household pets
Two horses, mules or donkeys with a saddle, blanket and bridle for each
Twelve head of cattle
Sixty head of “other” types of livestock
One hundred twenty fowl
Current earnings from personal services, except for child support
Unpaid commissions for personal services not over 25 percent
Health aides prescribed for the debtor
Alimony or separate maintenance received or anticipated to be received by the debtor for a dependent of the debtor
Qualified Savings plans including stock bonuses, pensions, annuities, deferred compensation, profit-sharing, health savings plans, education, only to the degree the plan is exempt from taxes or until taxes are deferred until payment to the person. This includes Roth, retirement plans, and Coverdell education savings plans.
Yes, as listed above in personal property you may claim as an exemption 1 motor vehicle per member in the household. You can exempt the vehicle also, if the person living in the home doesn't have a driver's license, but relies on another family member for use.
Other Exemptions Include:
Insurance for fraternal benefit societies such as the Elks club, Knights of Columbus
Federal law has a wildcard provision for property exemptions. The debtor's property interest up to $1,250 plus up to $11,850 of any unused amount of the exemption of $23,675.
This blog is intended for information purposes only and does not establish legal representation or financial guidance.