Will I lose my house and car if I file bankruptcy in Texas?

Usually no. Texas has one of the most protective homestead exemptions in the country — your primary residence is protected regardless of value, within acreage limits (10 urban acres, up to 100/200 rural). Texas also protects a large amount of personal property, including a vehicle. As long as you stay current on the loans, most Texans keep their home and car in both Chapter 7 and Chapter 13.

The Texas homestead — nation-leading protection

Texas protects your primary residence regardless of its value, subject only to acreage limits. That's stronger than most states. For clients in Dallas, Fort Worth, Arlington, Plano, Houston, San Antonio, and across Texas, this is usually why the home is safe. The exemption protects your equity, not the mortgage — so to keep the house you keep paying the loan, or use Chapter 13 to catch up if you're behind.

Personal property and your vehicle

Texas allows a generous personal-property exemption (a set dollar cap per household) that typically covers a vehicle, household goods, and tools of a trade. A financed car is kept by staying current on the loan.

Chapter 7 vs. Chapter 13 in Texas

In Chapter 7, exempt property is protected. In Chapter 13, you keep everything and pay a plan — often the right choice when you're behind on the house or car.

Where it gets fact-specific

How long you've lived in Texas and whether you're current on secured loans affect the result. A free consultation sorts it out before you file.

In Oklahoma? See the Oklahoma version — the exemptions differ.

Talk to a Texas bankruptcy lawyer — free consultation Call (866) 230-7236

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Prior results do not guarantee a similar outcome. Every matter is different and depends on its own facts.

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Frequently asked questions

Does the Texas homestead exemption cover my mortgage?
No — it protects your equity, not the loan. To keep the home you keep paying the mortgage, or use Chapter 13 to catch up on missed payments.
Is there a value limit on the Texas homestead?
No value cap — Texas protects the homestead regardless of value, subject to acreage limits (10 urban acres, up to 100/200 rural).

Related: Chapter 7 · Chapter 13 · Oklahoma version