What you can keep, and what you canít, when you file bankruptcy.

†††††††††††† There are two sources for the rules on what property you may keep as exempt from the claims of your creditors in a bankruptcy case:† The Texas constitution and the U.S. Bankruptcy Code.† The debtor will usually have a choice between the exemptions provided by the law of his or her state and the exemptions provided by the bankruptcy code.

†††††††††††† Texas exemptions are among the most debtor-friendly in the country.† Here there is an unlimited exemption for your homestead (provided youíve had it long enough), burial plots, current wages, one car for a licensed driver or two for a couple, household goods and furnishings, clothing and personal effects, two horses, mules or donkeys with saddles, 12 cattle, other livestock and fowl, qualified retirement programs, and the list goes on.† Usually our clients find Texas exemptions preferable to the optional federal exemptions.† The decision can be complicated, however, so please call or email us with any specific questions you may have about exemptions.