Texas Bankruptcy Exemption Calculator 2026
Texas's bankruptcy exemptions define which assets are protected from creditors and the bankruptcy trustee when you file. Understanding your exemptions is critical before filing Chapter 7, because the trustee can only liquidate assets that exceed exemption limits. In Chapter 13, exemptions still matter — they set the floor for how much creditors must receive in your repayment plan.
Texas's homestead exemption protects Unlimited in home equity (Unlimited on 10 acres urban, 200 acres rural). Vehicle equity up to $30,000 is protected. All qualified retirement accounts (401k, IRA, pension) are fully protected in every state. Texas's wildcard exemption of $0 can be applied to any asset not covered by a specific exemption.
Texas 2026 Bankruptcy Exemption Limits
| Asset Type | Protected Amount | Details |
|---|---|---|
| Homestead / Home Equity | Unlimited | Unlimited on 10 acres urban, 200 acres rural |
| Motor Vehicle | $30,000 | Per vehicle; some states allow 1 vehicle only |
| Retirement Accounts | 100% | 401(k), IRA, pension, 403(b) fully protected |
| Wildcard | $0 | Applies to any asset |
| Personal Property | $60,000 | Household goods, furniture, clothing, electronics |
| Wages / Earnings | 100% of current wages exempt | Applies to wages earned but not yet paid |
Texas Chapter 7 Median Income (Reference)
To use the Texas exemptions in Chapter 7, you must also pass the means test. The 2026 income thresholds for Texas are: 1 person $62,592/year; 2 people $79,824/year; 3 people $91,872/year; 4 people $104,532/year.
Frequently Asked Questions
Does Texas allow filers to choose federal bankruptcy exemptions instead?
Texas is an "opt-in" state that allows filers to choose either state exemptions or federal bankruptcy exemptions. Consult an attorney to determine which set of exemptions protects more of your assets.
What happens to assets that exceed Texas's exemption limits?
In Chapter 7, if your equity in an asset exceeds Texas's exemption limit, the trustee may liquidate that asset, return the exempt amount to you, and distribute the remainder to creditors. You can sometimes avoid this by paying the non-exempt amount to the trustee (a "buyout") or by converting to Chapter 13. In Chapter 13, non-exempt asset equity affects the minimum payment to unsecured creditors but does not result in asset sales.
Are retirement accounts really fully protected in Texas bankruptcy?
Yes. ERISA-qualified retirement accounts (401k, 403b, pension, profit-sharing plans) are protected by federal law regardless of state. Traditional and Roth IRAs are protected up to $1,512,350 per debtor under federal bankruptcy law. Most states, including Texas, also protect state-specific retirement vehicles. This protection applies in both Chapter 7 and Chapter 13.