What Are Texas Homestead Protection Laws?
If you are a home owner who is going through hard financial times, you will want to know how you can avoid losing your home and other property. Even if you have declared bankruptcy, you will still need a place to live if you cannot meet the demands of your creditors.
Homestead protection laws allow property owners to assert a limited piece of their property as a “homestead.” This is based on the property value or acreage in that state, and this declaration will become off limits to creditors. These laws can protect real property from any forced sales, and they are sometimes aimed to prevent homelessness. The Texas homestead laws are encoded into the state’s constitution, and they are considered to be among the strongest in the country.
What Protections Do Texas Homestead Laws Provide?
A homestead in Texas is any property that is owned by an individual, but it can’t include property owned by a corporation or partnership. This includes houses or farms, but it doesn’t include moveable items such as boats or mobile homes.
The homestead laws in Texas give much more protection from creditors than homestead laws in other states. They do no set a dollar value on eligible land, which limits the size of the homestead to 10 urban acres or 200 rural acres.
You can also qualify for federal homestead protections when you are filing for bankruptcy in Texas, if you believe that federal law provides more protection for your specific circumstances. Federal homestead exemptions protect a part of your home equity from any creditors. The exemption amount for federal law, as of 2015, is $22,975. If you are a married couple, you can even double this amount.
If you are going through financial difficulties and you are interested in Texas homestead protection, you should first contact one of our real property attorneys at Anderson & Riddle.