The Texas Bankruptcy Exemption Options

The State of Texas is unique among all states in the country. In a few circles, the state is known as a debtor's haven because of extensive protection of debtor rights in a wide assortment of legal disputes. At first glance, the Texas Constitution does not limit the amount of a homestead exemption, but this provision was recently preempted by federal law and is now limited to about $125,000 in home equity. Also, Texas does not allow wage garnishment so that current salaries may not be touched even though a creditor holds a valid court judgment.

The Texas bankruptcy form must specifically contain legal descriptions and an associated statutory authority for claiming Texas bankruptcy exemptions. Also, when filing bankruptcy in Texas under Chapter 7, Texas bankruptcy law requires all creditors receive notice of filing and have access to records on file at the clerks office. Texas bankruptcies are public record events, and anyone may review schedules and forms filed without cost.

See also: Texas Homestead Exemption.