| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the exemption of certain personal property from |
|
|
garnishment, attachment, execution, or other seizure by creditors. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 31.002, Civil Practices and Remedies |
|
|
Code is amended by adding Subsection (i) to read as follows: |
|
|
(i) For collection of judgments on consumer debt, as defined |
|
|
by Texas Finance Code Section 392.001(2), a court order under this |
|
|
section must exempt an amount to cover basic needs equal to $3,000 |
|
|
from freezing and turnover. The order must direct the judgment |
|
|
creditor or receiver to apply the exemption under this section to |
|
|
amounts in a demand deposit account first, followed by any other |
|
|
accounts, as applicable. In the event the judgment debtor has more |
|
|
than one demand deposit account or other combination of accounts, |
|
|
the exemption shall be applied to the largest demand deposit |
|
|
account first followed by any additional accounts in the order of |
|
|
most to least funds available. The exemption provided in this |
|
|
section includes any amounts protected under 31 C.F.R. Part 212 and |
|
|
does not limit other exemptions to the extent those exemptions |
|
|
exceed this amount. This subsection does not apply to the |
|
|
enforcement of court-ordered alimony, child support, or spousal |
|
|
maintenance payments. |
|
|
SECTION 2. Section 31.002, Civil Practices and Remedies |
|
|
Code is amended by adding Subsection (j) to read as follows: |
|
|
(j) In implementing subsection (i) with regard to an account |
|
|
held on behalf of a judgment debtor by a financial institution, an |
|
|
order under this section shall direct the judgment creditor or |
|
|
receiver in the first instance to send a levy letter to the |
|
|
financial institution. With that levy letter, the judgment |
|
|
creditor or receiver shall include a separate form that is |
|
|
identical to or substantially the same as subsection (k). |
|
|
Section 3. Section 31.002, Civil Practices and Remedies Code |
|
|
is amended by adding Subsection (k) to read as follows: |
|
|
(k) The following demand for information, when completed, |
|
|
meets the obligations of the judgment creditor or receiver under |
|
|
subsection (j): |
|
|
DUTIES OF FINANCIAL INSTITUTION |
|
|
As noted in the levy letter and its attachments, the judgment |
|
|
debtor, (name of judgment debtor), has an unsatisfied |
|
|
judgment debt and is obligated by an order of the court to turnover |
|
|
non-exempt assets to the [identify judgment creditor or receiver] |
|
|
to satisfy that debt. Any funds equal to or less than $3,000 are |
|
|
not subject to levy and shall not be disbursed to a judgment |
|
|
creditor or receiver in response to a levy letter. As reflected by |
|
|
the court order attached to the levy letter, this exemption shall |
|
|
be applied to the largest demand deposit account first followed by |
|
|
any additional accounts in the order of most to least funds |
|
|
available. The exemption provided in this section includes any |
|
|
amounts protected under 31 C.F.R. Part 212 and does not limit those |
|
|
amounts or other amounts protected under other exemptions to the |
|
|
extent those exemptions exceed this amount. This exemption does |
|
|
not apply to the enforcement of court-ordered alimony, child |
|
|
support, or spousal maintenance payments. |
|
|
Section 4. Section 31.010(a), Civil Practices and Remedies |
|
|
Code is amended by adding paragraph (3) to read as follows: |
|
|
(3) A duties of financial institution form in the same or |
|
|
substantially the same form as set forth in section 31.002(k). |
|
|
SECTION 5. This Act takes effect September 1, 2023 |