n Texas, there is a choice of either using the Federal exemptions or the State exemptions when protecting property in bankruptcy.
Under federal law, the homestead is $21,625.00 and automatically increases every three years. This is found in 11 USC § 522 (d)(1). Under state law, the exemption is unlimited, with certain size restrictions. However, one must understand that there is another law, 11 USC § 522(p)(1), which places a homestead exemption cap on the unlimited amount. This cap states that if the property was acquired less than 1215 days ago, then the exemption is limited to $125,000.00. The following case also supports this finding: Jack C. Wallace v. Sarah K. Rogers, 2008 WL 54796 (5th Cir.)(Tex.).
For more on this topic, please contact a Houston bankruptcy attorney from the Rashid Law Firm for a free consultation at 832-209-8833.