• Find out what Texas law says about Chapter 7 bankruptcyBankrupt. Businessman with empty pockets (with clipping paths) . image by Vitaliy Pakhnyushchyy from Fotolia.com
  
  Bankruptcy laws for Chapter 7 bankruptcy are similar for every state, because the law is mandated by the federal government. Whether you are in Texas or any other state, you are subject to a means test to determine whether you are eligible for Chapter 7 bankruptcy, and you are required to appear before a bankruptcy judge. However, the items that are exempt from collection procedures in bankruptcy does vary from state to state. Texas law exempts certain things.
  
  

Homestead

• If you own your home in Texas and file for bankruptcy under Chapter 7 rules, your home is 100 percent exempt from bankruptcy collection, provided the property in a town or city is less than one acre or the property in other places, such as farms or ranches, is less than 100 acres (200 acres for families).
  
  

Personal Property

• Certain personal property is exempt from bankruptcy proceedings in Texas, including items such as sports equipment, furniture in your home, family heirlooms, food, clothing and jewelry (if it is not more than 25 percent of the value of your total exemption). Burial plots and items used for health purposes are also exempt.
  
  

Insurance

• Many forms of insurance payments and accrued insurance value are exempt from bankruptcy collection by Texas law, including such things as church insurance plans; life, health and accidental insurance policy money, and the present value of any life insurance holdings.
  
  

Other Items

• Other things exempt from Chapter 7 bankruptcy under Texas law include money earned from wages that has not yet been paid, 75 percent of unpaid commissions, most types of pensions and public benefits and tools used to make a living, such as basic farm equipment. Value held in business partnerships is also exempt.
  
  

Federal Exemptions

• Usually you can claim either Texas exemptions or federal exemptions when filing Chapter 7 bankruptcy in Texas. However, certain additional federal exemptions may be available as well. Consult your bankruptcy attorney to find out what else you may claim as exempt.
  
  

Couples Filing Jointly

• If a couple files jointly for bankruptcy under Chapter 7 rules, the spouses usually are entitled under Texas law to claim exemptions individually.