73R6338 LJD-F
By Hartnett H.B. No. 1876
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to cancellation of judgments and judgment liens after
1-3 bankruptcy discharge.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The heading of Subchapter B, Chapter 52, Property
1-6 Code, is amended to read as follows:
1-7 SUBCHAPTER B. CANCELLATION OF JUDGMENTS AND JUDGMENT LIENS AGAINST
1-8 BANKRUPTS--ABSTRACT RECORDED BEFORE SEPTEMBER 1, 1993
1-9 SECTION 2. Section 52.021, Property Code, is amended to read
1-10 as follows:
1-11 Sec. 52.021. Discharge and Cancellation. (a) In accordance
1-12 with this subchapter <chapter>, a judgment and judgment lien may be
1-13 discharged and canceled if the person against whom the judgment was
1-14 rendered is discharged from his debts under federal bankruptcy law.
1-15 (b) This subchapter <chapter> applies to judgments against
1-16 persons whose debts are discharged in bankruptcy and for which the
1-17 abstracts of judgment are recorded before September 1, 1993, as
1-18 provided by Subchapter A, regardless of the fact that the discharge
1-19 in bankruptcy occurred before this law took effect.
1-20 SECTION 3. Chapter 52, Property Code, is amended by adding
1-21 Subchapter C to read as follows:
1-22 SUBCHAPTER C. CANCELLATION OF JUDGMENTS AND JUDGMENT LIENS AGAINST
1-23 DEBTORS--ABSTRACT RECORDED ON OR AFTER SEPTEMBER 1, 1993
1-24 Sec. 52.041. APPLICATION OF SUBCHAPTER. This subchapter
2-1 applies to a judgment and judgment lien for which an abstract of
2-2 judgment or judgment lien is recorded on or after September 1,
2-3 1993.
2-4 Sec. 52.042. DISCHARGE AND CANCELLATION. (a) A judgment is
2-5 discharged and the abstract of judgment or judgment lien is
2-6 canceled and may not be enforced if:
2-7 (1) the lien is against real property owned by the
2-8 debtor before a petition for debtor relief was filed under federal
2-9 bankruptcy law; and
2-10 (2) the debt or obligation evidenced by the judgment
2-11 is discharged in the bankruptcy.
2-12 (b) A judgment evidencing a debt or obligation discharged in
2-13 bankruptcy does not have force or validity and may not be a lien on
2-14 real property acquired by the debtor after the petition for debtor
2-15 relief was filed.
2-16 SECTION 4. This Act takes effect September 1, 1993.
2-17 SECTION 5. The importance of this legislation and the
2-18 crowded condition of the calendars in both houses create an
2-19 emergency and an imperative public necessity that the
2-20 constitutional rule requiring bills to be read on three several
2-21 days in each house be suspended, and this rule is hereby suspended.