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In bankruptcy, a homestead exemption protects equity in your home. Here, you'll find specific information about the homestead exemption in Texas. For general information about how the homestead exemption works in both Chapter 7 and Chapter 13 bankruptcy, read The Homestead Exemption in Bankruptcy. For more bankruptcy information, read Filing for Bankruptcy in Texas.
Not Sure What to Expect in Bankruptcy?Texas lets filers use the homestead exemption under either the federal or Texas state exemption system. However, you can't mix exemptions from both lists, so select the system that will protect your most important assets.
To help you make an informed choice, we've listed the federal and Texas homestead exemption amounts below. We've also included links to more complete lists so you'll have an easier time deciding which set will work best for you.
If you're married, remember that spouses can double some exemption amounts, but not all. Find out about other filing considerations for spouses.
Caution: The state exemptions have not been updated and should not be relied on, but used as a general guide only. Some state exemption amounts could be higher and your state could have changed the law by adding new or deleting old exemptions. You must verify exemption availability through independent research or by consulting with a local bankruptcy attorney.
Federal Homestead Exemption
Texas Homestead Exemption
Homestead exemption amount
Can spouses who file a joint bankruptcy double the exemption?
$55,800 is available to spouses who co-own property.
See acreage limits below.
Homestead exemption law
Tex. Prop. Code §§ 41.001 – 41.0241
Other information
Amounts will adjust on April 1, 2025.
Ten city acres or 100 rural acres. A family can double to 200 rural acres.
Compare other federal and state exemptions.
The Texas homestead exemption applies to real property serving as your primary residence, such as your home or condominium. Texas considers any improvements such as a swimming pool, barn, water tower, pumps, roads, and other items substantially affixed to your primary residence part of the homestead exemption. The unlimited homestead exemption also applies to a burial plot.
How to Use a Homestead Exemption in a Texas BankruptcyThe homestead exemption protects equity in your home from creditors. Because Texas's homestead exemption protects all home equity, this example would apply only if you choose the federal exemptions.
In both examples, your home is worth $120,000 and you have a $50,000 homestead exemption available.
Example 1. If you own a house worth $120,000 and have a mortgage balance of $70,000, you have $50,000 of equity in the property. If you file a Chapter 7 bankruptcy, you can use the $50,000 homestead exemption to protect all home equity.
Example 2. Assume your mortgage is $20,000, and you can exempt $50,000 of your $100,000 equity. The Chapter 7 bankruptcy trustee would likely sell your house, give you $50,000 for the exemption, and use what remains after sales costs to pay unsecured creditors. If you wanted to keep the home, you could file for Chapter 13 and pay the $50,000 nonexempt equity portion to unsecured creditors through the Chapter 13 plan.
You can file for bankruptcy in Texas after living there for over 180 days. However, you must live in Texas much longer before using Texas exemptions, at least 730 days before filing, to be exact. Otherwise, you'd use the previous state's exemptions.
But suppose you lived in multiple states during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two years immediately preceding your filing. (11 U.S.C. § 522(b)(3)(A).) Learn more about filing for bankruptcy after moving to a new state.
Also, to claim the total value of the Texas homestead exemption, you must have purchased and owned the property for at least 1,215 days before the bankruptcy filing. If you can't meet this requirement, your homestead exemption is limited by federal law to $189,050 (this figure will be adjusted on April 1, 2025).
You'll also need to meet other requirements. Find out more about keeping your home in Chapter 7 or Chapter 13.
You can search for Texas exemption laws on the Texas Constitution and Statutes homepage or visit Texas Bankruptcy Exemptions. However, most statutes don't include updated amounts, and understanding statutory requirements can be challenging. It's best to consult with a local bankruptcy lawyer.
Bankruptcy mistakes, such as improperly disclosing or exempting assets, can be costly and often occur when filing without a bankruptcy lawyer. We've covered some of the most basic rules you'll encounter when protecting your home in bankruptcy. However, you must also meet other timing and exemption requirements to prevent losing your home.
A local bankruptcy lawyer's knowledge and expertise will help you avoid losing your home and other valuable assets and ensure you maximize the homestead exemption.
Did you know Nolo has made the law easy for over fifty years? It's true, and we want to ensure you find what you need. Below, you'll find more articles explaining how bankruptcy works. And don't forget that our bankruptcy homepage is the best place to start if you have other questions!
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We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer .