People often fear the bankruptcy process assuming that much of their personal property will be lost to the hands of creditors. While there could be some risk to your nonessential assets you should know that Texas bankruptcy exemption laws are some of the most generous when it comes to protecting assets. Unlike other states and the federal exemption laws, Texas puts up a tough fight for much of your property.
The biggest concern people often have when filing for bankruptcy is what will happen to their home. The Texas homestead exemption protects an unlimited value of equity in the home; compared to the federal limit of $22,975. Texas exemption laws all for the protection of one vehicle per licensed member of the family; compared to the federal limit of #3,675. Personal property like clothing, appliances, home furnishings, and the like are exempt to an aggregate value of $30,000 for a single person and $60,000 for a family; compared to the federal limit of $12,250.
Essential living items and certain fund accounts are also exempt both under federal and Texas bankruptcy exemption laws. Health aids and life insurance policies are exempt from liquidation with an unlimited value. Domestic support funds, social security, unemployment and veterans benefits are all fully exempt under both federal and Texas laws. Retirement accounts are exempt up to an unlimited amount in Texas; compared to the cap of $1,245,475 on IRAs and Roth IRA under federal laws.