Texas bankruptcy laws allow the debtor declared as bankrupt to use federal supplemental exemptions along with the state specific exemptions. In addition, you also have the option to substitute the state specific exemptions completely with the federal exemptions set. Texas bankruptcy district courts are located in twenty places under four group regions – Texas Eastern District Court, Texas Northern District Court, Texas Southern District Court, and Texas Western District Court.
Properties Exemptions Under The Texas Bankruptcy Laws
As per the Texas bankruptcy laws, following are the properties and their specific details that can be exempted by the debtor declared as bankrupt, by any of the Texas bankruptcy district courts.
•There is no upper limit for the amount exempted under the Homestead Exemptions. However, the restrictions are in terms of area of the property. The homestead properties you are exempting cannot exceed one acre in town and one hundred acres elsewhere. Again, the Texas bankruptcy laws have made it mandatory for you to file homestead declaration.
•Insurance Exemptions include group insurance for Texas employee uniform, group insurance for retired public school employees, fraternal benefit society benefits, and Church benefit plan benefits.
•The maximum amount exemptible under the personal properties exemptions is thirty thousand dollars. However, in case of a family filing for bankruptcy jointly, the maximum amount will get double and you will be able to exempt up to sixty thousand dollars in total.
•Pension funds are also allowed for exemption under the Texas bankruptcy laws, but only the following individuals are eligible for such exemptions:
◦Teachers
◦State employees
◦Others may exempt the Retirement benefits to extent tax-deferred
◦Police officers
◦Municipal employees
◦Law enforcement officers’ survivors
◦Keoghs to extent tax-deferred is also considered under pension exemptions as per the Texas bankruptcy laws.
◦Judges
◦Firefighters
◦County & district employees
•Earned but unpaid wages are also considered as exemptible as per the Texas bankruptcy laws.