A homestead exemption is a statute that protects a debtor’s home from being seized by creditors. Every state has a homestead exemption of some sort, but Texas has a very generous homestead exemption. It allows for an individual to protect their home during bankruptcy up to the maximum value of the property. There is no cap on the value of the homestead exemption in Texas. However, in order to be eligible to receive this protection, you must have lived in Texas for at least two years. Homestead exemptions only protect the debtor’s equity in their home. The home can still be foreclosed if a mortgage secured by the home isn’t paid.
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