Texas Increases Personal Property Exemption Amounts in Bankruptcy

As of September 1, 2015, Texas has increased its dollar amount cap on personal property exemptions. Texas already had one of the most generous exemption systems in the country, and now it’s even more favorable to bankruptcy filers.

How the Personal Property Exemptions Work in Texas

Texas law lists categories of personal property that are exempt in bankruptcy. Examples include: motor vehicles, wearing apparel, home furnishings, family heirlooms, food, farming or ranching vehicles and equipment, tools of the trade, jewelry, two firearms, sporting equipment, livestock, and pets. Tex. Prop. Code Ann. § 42.002.

Then, Texas places a cap on the total amount of property that you can exempt under this list. Prior to September 2015, the cap was $100,000 for filers with families and $30,000 for single people. Now, thanks to the increase, people with families filing for Chapter 7 bankruptcy can exempt up to $100,000 of their personal property. Single people can exempt up to $50,000. Tex. Prop. Code Ann. § 42.001. (Learn more about the Texas Bankruptcy Exemptions.)