Chapter 7 Bankruptcy: What to Know Before You File in Texas

Texas Chapter 7 Exemptions

Texas is an opt-in state: a Texas debtor may use the state exemption set OR elect the federal Section 522(d) exemptions, whichever better fits the debtor's assets. (Source: Nolo, Texas Bankruptcy Homestead Exemption.)

Homestead, Vehicle, and Personal Property

The Texas homestead exemption is unlimited in dollar value but capped by acreage: up to 10 acres in an urban area, 100 acres rural for a single person, or 200 acres rural for a family (Tex. Prop. Code Sections 41.001 to 41.002). Texas has no separate state wildcard — personal property is capped in aggregate. (Source: Nolo, Texas Bankruptcy Homestead Exemption.)

Recently acquired equity may not be fully protected even in Texas. (Source: Nolo; 11 U.S.C. Section 522(p).)

Means Test: Texas Median Income

The Chapter 7 means test compares a debtor's six-month average gross income to the state median family income for the household size. April 1, 2026; smaller households use lower figures). A debtor below the applicable median is generally not presumed to be abusing Chapter 7; above-median filers complete Form 122A-2. (Source: U.S. Trustee Program, justice.gov/ust.)

Which State's Exemptions Apply

Under the 730-day domicile rule (11 U.S.C. Section 522(b)(3)), a debtor must have been domiciled in Texas for the 730 days before filing to use Texas exemptions; otherwise an earlier state's set or the federal exemptions may apply. This matters for the many residents who move to Texas — the generous homestead is not automatically available right after relocation.

To compare your six-month income against the Texas median, use the Chapter 7 means test calculator at /tools/chapter-7-means-test-calculator. To estimate what property Texas or the federal set might protect, use the bankruptcy exemption estimator at /tools/bankruptcy-exemption-estimator.