The Texas Homestead Exemption

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.

How Much Is the Homestead Exemption in a Texas 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.

What Property Is Protected by Texas's Homestead Exemption?

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.

When Can You Use a Homestead Exemption in a Texas Bankruptcy?

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.

Where Do You Find the Texas Homestead Exemption?

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.

How Can I Avoid Common Mistakes When Using Montana's Homestead Exemption?

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.

Need More Bankruptcy Help?

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!

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 October 5, 2023