Full question:
Does filing a homestead exemption in Texas protect against losing your home in a lawsuit? Is there a limit to the amount that is protected on your home?
- Category: Taxes
- Date:
- State: Texas
Answer:
In Texas, homestead laws protect your home from being seized by creditors, except for certain situations. According to Texas law, a homestead is exempt from seizure for creditor claims, but there are exceptions for debts like mortgages, property taxes, and certain construction liens (Tex. Prop. Code § 41.001).
The homestead can consist of up to ten acres for urban homes or up to two hundred acres for rural homes, depending on whether it's owned by a family or a single adult (Tex. Prop. Code § 41.002). Additionally, if you sell your homestead, the proceeds are protected from creditors for six months after the sale.
In summary, while a homestead exemption provides significant protection, it does not shield your home from all types of claims, particularly those related to specific debts.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.