Texas Bankruptcy

Chapter 7 bankruptcy was created to eliminate debt and silence creditors, but it can also help you protect your home and personal possessions.

Texas has some of the strongest Chapter 7 exemptions in the country! But the laws surrounding them can still be complex.

Learn more about the laws below, or complete the free form on this page to get a free bankruptcy case evaluation by a local Texas bankruptcy lawyer. We’ll connect you with a Chapter 7 lawyer near you right away, so you can get help starting your bankruptcy case.

Filing Chapter 7 Bankruptcy in Texas

Many people struggling with debt in Texas choose to file Chapter 7 bankruptcy because of the state’s strong bankruptcy exemptions.

Chapter 7 bankruptcy laws include provisions that help filers resolve their debt, and protect their property.

Filing bankruptcy gives you access to these tools, but their use can still be complex, with many documents, court filings, meetings and deadlines. That is why many people seek out help and extra knowledge in using bankruptcy properly.

Texas Bankruptcy Laws

Chapter 7 bankruptcy involves a discharge of unsecured debt, like credit card and medical bills.

In exchange for clearing the debts, creditors may have the right to a liquidation, or property sale, of non-exempt assets.

In most Chapter 7 cases, there is no property sale whatsoever thanks to Chapter 7 exemptions.

Texas Bankruptcy Exemptions

Luckily, you don’t have to worry about losing all of your worldly possessions to the Texas bankruptcy court. Texas bankruptcy law outlines specific exemptions that detail which property you’re allowed to keep, and Texas exemptions are among the strongest in the country.

These exemptions include the following.

Homestead: The full value of your home. Homestead is limited to:

• 200 acres for a family outside a city or town.
• 100 acres for a single adult outside a city or town.
• 10 acres for anyone in a city or town.

Wages: 100 percent of your wages and personal commissions.

Vehicle: Full value of one automobile. Note: This value counts towards the $60,000 cap on personal property exemptions.

Personal Property:

• Up to $60,000 worth of any personal property, including car, for a family.
• Up to $30,000 worth of any personal property, including car, for a single adult.
• 100 percent of certain health aids and religious books. This exemption doesn’t count towards the total value cap.

Questions? Talk to a Texas Chapter 7 Bankruptcy Lawyer

If you’re still uncertain how to interpret Texas Chapter 7 bankruptcy law, you’re not alone. A Texas bankruptcy lawyer can answer your questions about the laws, and take you through your case.

To get your free Chapter 7 bankruptcy case evaluation from a local lawyer, complete the form on this page or call, toll free, 877-226-6844. We’ll connect you right away with a Texas lawyer near you.

Note: Keep in mind all laws are complex. If you need legal advice or want to fully understand how these laws affect you, please speak with a local attorney.

Laws may have changed since our last update. For the latest information on your state’s bankruptcy laws, speak to a local bankruptcy lawyer.