Texas rules
How bankruptcy works is federal and the same everywhere. What you keep, and the income line you are measured against, are set by your state. Here is Texas.
Texas protects 100 percent of your home equity, with no dollar cap, as long as you are current on the mortgage and within the acreage limits (10 acres in a city, up to 100 acres rural for a single person or 200 for a family). It is the centerpiece of Texas debtor protection, and the reason so many Texans file without fear.
A rough picture of what Texas law protects for you.
Estimate only. Texas personal-property exemptions apply per category up to an aggregate cap of $50,000 single or $100,000 family, with separate rules for vehicles and tools of trade. Retirement accounts are separately exempt. Verify current Texas Property Code limits with an attorney.
The income gate for Chapter 7, in ten seconds.
Checks only the first step of the means test (the income comparison). Over the median, a full test weighs allowed expenses and disposable income, which often still leads to relief. Median figures are updated periodically by the U.S. Trustee Program and are approximate here.
Texas lets you choose the state exemptions instead of the federal set. For most Texans, the state list protects more. Here is what it covers.
That is exactly the situation Texas exemptions are built for. You keep your home and savings, and the unsecured debt goes away.