The Texas Homestead exemption is the best in the country. It allows you to protect an almost unlimited amount. It does have an acres limitation though.  For homesteads in an urban/city area, you are limited to 10 acres. For rural homesteads, you cannot exceed 100 acres, unless a family lives there, then you get an additional 100 acres. There are some other exceptions as it relates to bankruptcy so always consult with an attorney first to review your assets and confirm you can exempt them. 

Most other states have limits on the homestead exemptions, so you can only protect your home up to the limits. But luckily, that is not the rule in Texas. You can review a detailed list of the Texas Bankruptcy Exemptions by going to this site.  

Texas also allows you to choose Federal exemptions.  For most people who don’t own a home, Federal exemptions are better. The main reason is the federal exemptions allow for what is known as a “wild card” exemption, which allows you to protect anything (cash, gold, stocks, etc.) up to a certain amount. As of 2020, the wildcard exemption amount is $13,100 for an individual and $26,200 for a couple. You can get more information on federal exemptions by going to this site. 

The good news is, you don’t have to figure out what exemptions to use. Almost every single bankruptcy law firm in Texas offers a free consultation.  During that meeting you can discuss your property and the attorney should be able to do a very quick and easy exemption analysis to confirm all of your property will be protected.