Most people want to know whether they can keep valuable property before filing for bankruptcy—especially a home. If you qualify to use the Texas homestead exemption, you can protect some or all of the equity in your house. In this article, we explain:
For more bankruptcy information, read How Bankruptcy Works in Texas.
Texas lets filers use either the federal exemption system or Texas's state exemption system, so you'll have two homestead amounts to choose between. However, you can't mix exemptions from both lists, so you'll want to select the system that will protect your most important assets.
We've listed both exemption amounts below to help you make an informed choice. We've also included links to more complete federal and state exemption 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.
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Federal Homestead Exemption |
Texas Homestead Exemption |
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Homestead exemption amount |
$27,900 |
Unlimited |
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Can spouses who file a joint bankruptcy double the exemption? |
$55,800 is available to spouses who co-own property. |
See acreage limits below. |
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Homestead exemption law |
11 U.S.C. § 522(d)(1) |
Tex. Prop. Code §§ 41.001 – 41.0241 |
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Other information |
Amounts will adjust on April 1, 2025. |
Ten city acres or 100 rural acres. A family can double to 200 rural acres. |
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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. Texas also provides an unlimited homestead exemption for your burial plot.
You can file for bankruptcy in Texas after living there for more than 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-year period that immediately preceded 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 adjust on April 1, 2025).
Learn more about this requirement, the current amount of the federal cap, and other important exceptions to homestead exemptions.
When filing for bankruptcy, you'll list your homestead exemption on Schedule C: The Property You Claim as Exempt when completing your bankruptcy forms. Remember that you'll need to meet other requirements to prevent losing your home in bankruptcy. Find out more in Your Home in Chapter 7 or Your Home in Chapter 13.
Texas has other "homestead exemptions" that allow you to get up to a $25,000 tax break on the property taxes of your principal residence. This isn't something you'll need to apply for before filing for bankruptcy. If you'd like to save on property taxes, you can learn more by visiting the Texas Comptroller webpage.
You'll find Texas's homestead exemption in the Texas Property Code at § § 41.001 – 41.024. on the Texas Constitution and Statutes website. Learn about finding state statutes in Laws and Legal Research.
Did you know Nolo has been making the law easy for over fifty years? It's true—and we want to make sure 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.
Updated April 8, 2022