Legal Question in Bankruptcy in Texas

Assuming you have no liens against the home,

If you lived in Texas for 2 years prior to filing you can use the Texas homestead exemption which is unlimited. The home must qualify as a homestead under Texas law.

There is also a federal exemption for the first $125,000 of value but you must have resided in the house for 3.3 years.

If you owe money on the house and can continue paying the mortgage, you can reaffirm the mortgage debt under certain circumstances and still file bankruptcy. If you are not current and your house is being forclosed, may not be as much of a help.

In any event, you need to see a bankruptcy lawyer and have him review your situatuion.