M. Linda Rushing, PC

Serving Austin, TX
Call 512-298-6953

What Property You Can Keep


At the Texas law firm of M. Linda Rushing, PC, we have heard all of the horror stories! Your brother-in-law claims he lost EVERYTHING in his bankruptcy. The first question Linda Rushing always asks is, "What state did your brother-in-law live in? Utah? Indiana? Oregon?" Then it may be at least partially true. The second question is, "Was there fraud involved?"

The real truth is that if you have lived in Texas two years or more, in most cases, your property will be completely protected from your creditors.

Property is protected – KEPT – by exempting it under very specific laws. You may have heard that Texas exemptions are the best. Linda Rushing would tell you that is misleading because Texas, like 18 other states, allows Texans to choose between the Texas exemptions and the federal exemptions.

Under the federal exemptions, if you are married and filing jointly, you may double all of the dollar amounts on federal bankruptcy exemptions. For example, you may claim a homestead exemption of $43,250 (which is double the listed homestead exemption amount of $21,625).

Linda Rushing prefers to use federal exemptions because her clients can have cash in the bank, or expected cash like a tax refund. That is due to the federal "wild card exemption." (Linda calls it the "gold exemption.") With no equity in a home, a client can have up to the limit of $11,975 for single filers, $23,950 for married people filing jointly. A client can have cash, own a boat or have an inherited interest in "Nana's house." As long as she can fit it all into the generous federal exemptions, she will use those.

Linda switches to Texas exemptions if her clients have over the maximum equity in a homestead allowed under the federal exemption. It is not unusual for a client to have $70,000 and up in equity in their home: if the client has lived in Texas more than about 3 ½ years, that equity probably can be protected under Texas law. Texas exemptions also allow for a vehicle for each licensed person in the household; farming or ranching vehicles and implements; 2 guns; a bible; a burial plot; and a variety of animals including two horses and 12 cows.


Contact Linda Rushing — Central Texas Bankruptcy Attorney

For help when you are unsure as to what you may be able to keep in a bankruptcy, don't listen to your friends or family; for a correct answer turn to Austin bankruptcy lawyer, M. Linda Rushing, PC. Call today or contact us online to schedule a free initial consultation. To make the process easy and accessible for all, payment plans are available.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.


Please consult an attorney for advice about your individual situation. This site and its information is not legal advice, nor is it intended to be. Feel free to get in touch by electronic mail, letters or phone calls. Contacting us does not create an attorney-client relationship. An attorney-client relationship is not established until a contract has been signed by both parties.