Bankruptcy by State
Bankruptcy in Texas
How Texas's bankruptcy exemptions, Chapter 7 income limits, and filing volume compare to the rest of the country.
Homestead exemption
Unlimited
No dollar cap
Vehicle exemption
—
Wildcard may apply
Median income (1 person)
$66,837
Chapter 7 means-test threshold
Annual filings
36,758
Year 2025
Texas vs. national medians
National medians are calculated across all 51 states plus the District of Columbia. Ranks run from #1 (highest) to #51 (lowest). Where a state publishes a range or a conditional amount, the exemption is shown in full and ranked by its guaranteed minimum.
| Metric | Texas | National median | Rank |
|---|---|---|---|
| Homestead exemption | Unlimited | $90,000 | Unlimited |
| Motor vehicle exemption | — | $7,250 | — |
| Median income (1-person household) | $66,837 | $71,745 | #38 of 51 |
| Median income (4-person household) | $117,962 | $126,058 | #36 of 51 |
| Annual bankruptcy filings | 36,758 | 8,707 | #3 of 51 |
Texas provides an unlimited homestead exemption (subject to federal acreage and time-of-ownership limits under the Bankruptcy Code).