By:  Hartnett                                         H.B. No. 1876
       73R6338 LJD-F
                                 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.