Sections of Texas Bankruptcy Code
Human Resources 31.040, 32.036
Under the Texas bankruptcy code, if you are receiving public assistance, the money and benefits are exempt from seizure by creditors during a Chapter 7 or Chapter 13 bankruptcy. Public assistance might include programs such as:
- Temporary Assistance for Needy Families (TANF) program
- Cash Assistance
- Food Stamps
- Medicaid
- Quality Health Care and Medical Assistance
- Shelter/Homeless Assistance Programs
- Public Housing
- Child Care Services
- Child Support Enforcement and Parent Locator Services
- Behavioral Health Services
- Adoption and Foster Care Services
- Prescription Medication Discounts
- Employment and Training
- Legal Services
Example 1: If you are filing Chapter 7 or Chapter 13 bankruptcy and receive $500 for temporary housing under a homeless assistance program, that money cannot be diverted by the bankruptcy court to pay creditor.
Example 2: If you are receiving cash benefits for an adopted or foster child, those benefits would not be seized by the bankruptcy court.
If you are receiving public assistance and are considering a Chapter 7 or Chapter 13 bankruptcy, discuss your public benefits with a Dallas-Fort Worth attorney about your benefits exemption.