2. What can I keep if I file Chapter 7 bankruptcy? Will I lose all my property if I file bankruptcy?

You can keep certain exempt assets when filing bankruptcy.  You may elect to use the federal statutory exemptions or the state exemptions, but in Texas, the state exemptions are typically more generous.  If you elect the Texas exemptions, with some limitations, you can keep the following items:

  • Your home (if you own it outright) as long as it is located on not more than 10 acres in the city and not more than 200 acres in the country
  • A motor vehicle for each person that holds a license
  • Home furnishings
  • Jewelry
  • Clothing
  • Two firearms
  • Pets
  • A limited amount of livestock
  • Retirement plans like 401(k)’s and IRA’s