Summary: Generally, you don’t lose property when filing if you choose the exemptions based on what you need. There are state and federal exemption options. If you can’t exempt something, Chapter 13 may be your best option.

If you file bankruptcy, you need to file so that you don’t lose property, right? The whole point of bankruptcy is to allow you to hold onto your home, vehicles, and other essential stuff while washing away debt. Keeping property is important for starting over fresh. This is done through exemptions. Most people are able to file and keep all property. Of course, there are limits. But Texas exemption laws are generous. You can choose either Texas state exemptions or federal exemptions.

Will I Lose My Home, Cars, 401(K) or Tax Refund?

Generally, you don’t lose these items. We will help you choose the right exemptions to help you protect what you need. The attorney will let you know if you have property that may be lost if you file. You may have to plan a certain date to file to be sure you keep your property. Consulting an attorney early is best. Some planning takes time.

Texas Exemptions

Generally, if you have lived in Texas for at least 3 years, you can keep your home, one vehicle per licensed driver, all your household goods, your 401k, IRA, etc.

Filing Chapter 13 to Protect Property You Can’t Exempt

If you have property that is over the exemption limit, Chapter 13 bankruptcy may be the best option. In Chapter 13 bankruptcy, you normally do not lose property. You do have to pay the value of the property to the Chapter 13 trustee. This can be a better option than losing property.

Want to learn more about bankruptcy and strategies to overcome debt?

Chapter 7 Bankruptcy – Best if wiping out credit card or signature loans will help. Cheapest, fastest bankruptcy, but can’t help you catch up on past due mortgage or vehicle loans.

Chapter 13 Bankruptcy – Best if need to catch up on long term debt, such as mortgage or vehicle.

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Complete our free, online debt evaluation form or call/text our office at (903) 759-5922. You can also email Find out if bankruptcy is your best option and whether it will help you.