Final answer:
The law preventing Texans from losing their homes due to financial problems such as bankruptcy is the Homestead exemption law. It protects home values from taxes and creditors, which was particularly important during the 2007 mortgage crisis offering bankruptcy protection.
Step-by-step explanation:
The law that prevents Texans from losing their homes in the event of bankruptcy or other financial problems is referred to as Homestead exemption law. The Homestead exemption is a legal regime designed to protect the value of the homes of residents from property taxes, creditors, and circumstances that arise from the death of the homeowner's spouse.
This law has been particularly significant in the context of the mortgage crisis that began in 2007, when many homeowners faced foreclosure due to declining property values. Bankruptcy protection laws like the Homestead exemption are vital in ensuring that individuals have a basic level of stability and shelter in the face of severe financial troubles.