Protecting Guns, Tools and Livestock in Texas Bankruptcy

 Posted on October 11, 2025 in Bankruptcy

Texas has some of the most generous bankruptcy exemptions in the nation, allowing debtors to keep essential personal and business assets. In many cases, firearms, tools of the trade, and even livestock are not luxuries; they are essential to a livelihood. Under Texas Property Code Section 42.001-002, it is possible to protect these items, or at least a significant number of them. This ensures that you can rebuild your financial future without losing the essentials that define your daily life. It is essential to have a highly skilled Houston, TX consumer bankruptcy attorney who can help ensure that you receive every available exemption.

What Are Exemptions and Why Do They Matter?

Bankruptcy exemptions are laws that allow those filing for bankruptcy to keep certain assets, protecting those assets from being sold to pay off creditors. Exemptions matter because they provide debtors with a fresh start by ensuring they can retain at least some of their assets to rebuild their future. Texas is well-known for its generous bankruptcy exemptions, particularly the homestead exemption that allows most of those who file for bankruptcy to keep their home regardless of equity. Although those who file for bankruptcy in Texas can choose between federal and state exemptions, virtually everyone chooses the state exemptions.

What Are Texas Exemptions That Protect Guns, Tools, and Livestock?

Texas provides a personal property exemption. This exemption is $100,000 for a family, or $50,000 for a single adult. This personal property exemption covers various types of property up to those limits, including tools, firearms, and livestock. These items must be for personal, family, or household use rather than for luxury or investment purposes.

Under Section 42.002(a)(7), firearms are explicitly listed as exempt. There is no numeric limit on how many guns may be exempt, but they must be "reasonably necessary for personal use." As you can imagine, Texas courts interpret this liberally, and the typical household can keep hunting rifles, handguns, or heirloom firearms within the property limit. Any firearms with significant collectible or investment value could push the total exempt property above the limit allowed.

Section 42.002(a)(4) exempts "tools, equipment, books, and apparatus, including boats and motor vehicles used in a trade or protection. This means that contractors’ and tradesmen’s equipment is protected, including work trucks and tools of the trade. If machinery is directly used in business operations, small business owners can keep these items. As an example, a self-employed carpenter can keep his or her work truck, power tools, scaffolding, and other tools under the statute, so long as the personal property remains within exemption limits.

Section 42.002(a)(3) exempts up to 12 head of cattle, up to 60 head of other livestock, such as sheep, goats, and horses, and up to 120 chickens or ducks. The food and forage for these animals is also exempted under the statute for up to a year. This allows ranching and farming families to ensure they can maintain income after filing for bankruptcy. Farm implements and vehicles are also included, so long as the personal exemption is not exceeded.

Maximizing Texas Personal Property Exemptions

Debtors can mix and match property categories as long as the total value does not exceed the limit for personal property ($50,000 for single, and $100,000 for family). It is important to value each asset realistically, as overstating values could risk partial loss. Insurance documents and appraisals may be necessary to accurately value these items. If the personal property exemption amount will not fully cover these assets, a Chapter 13 repayment plan rather than Chapter 7 might be more beneficial.

Contact a Montgomery County, TX Consumer Bankruptcy Lawyer

If you are considering bankruptcy in Texas but are worried about losing essential assets, you may be surprised to find that you have more protection than you think. Speak with a knowledgeable Houston, TX bankruptcy attorney from The Fealy Law Firm, PC to protect what matters as you begin to rebuild your financial future. Attorney Fealy is focused on helping good people through hard times. Call 713-526-5220 to schedule your free initial consultation.