1-1 By: Hartnett (Senate Sponsor - Harris of Tarrant) H.B. No. 1876
1-2 (In the Senate - Received from the House May 3, 1993;
1-3 May 4, 1993, read first time and referred to Committee on
1-4 Jurisprudence; May 11, 1993, reported favorably by the following
1-5 vote: Yeas 5, Nays 0; May 11, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Henderson x
1-9 Harris of Tarrant x
1-10 Brown x
1-11 Harris of Dallas x
1-12 Luna x
1-13 Parker x
1-14 West x
1-15 A BILL TO BE ENTITLED
1-16 AN ACT
1-17 relating to cancellation of judgments and judgment liens after
1-18 bankruptcy discharge.
1-19 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-20 SECTION 1. The heading of Subchapter B, Chapter 52, Property
1-21 Code, is amended to read as follows:
1-22 SUBCHAPTER B. CANCELLATION OF JUDGMENTS AND JUDGMENT LIENS AGAINST
1-23 BANKRUPTS--ABSTRACT RECORDED BEFORE SEPTEMBER 1, 1993
1-24 SECTION 2. Section 52.021, Property Code, is amended to read
1-25 as follows:
1-26 Sec. 52.021. Discharge and Cancellation. (a) In accordance
1-27 with this subchapter <chapter>, a judgment and judgment lien may be
1-28 discharged and canceled if the person against whom the judgment was
1-29 rendered is discharged from his debts under federal bankruptcy law.
1-30 (b) This subchapter <chapter> applies to judgments against
1-31 persons whose debts are discharged in bankruptcy and for which the
1-32 abstracts of judgment are recorded before September 1, 1993, as
1-33 provided by Subchapter A, regardless of the fact that the discharge
1-34 in bankruptcy occurred before this law took effect.
1-35 SECTION 3. Chapter 52, Property Code, is amended by adding
1-36 Subchapter C to read as follows:
1-37 SUBCHAPTER C. CANCELLATION OF JUDGMENTS AND JUDGMENT LIENS AGAINST
1-38 DEBTORS--ABSTRACT RECORDED ON OR AFTER SEPTEMBER 1, 1993
1-39 Sec. 52.041. APPLICATION OF SUBCHAPTER. This subchapter
1-40 applies to a judgment and judgment lien for which an abstract of
1-41 judgment or judgment lien is recorded on or after September 1,
1-42 1993.
1-43 Sec. 52.042. DISCHARGE AND CANCELLATION. (a) A judgment is
1-44 discharged and any abstract of judgment or judgment lien is
1-45 canceled and released without further action in any court and may
1-46 not be enforced if:
1-47 (1) the lien is against real property owned by the
1-48 debtor before a petition for debtor relief was filed under federal
1-49 bankruptcy law; and
1-50 (2) the debt or obligation evidenced by the judgment
1-51 is discharged in the bankruptcy.
1-52 (b) A judgment evidencing a debt or obligation discharged in
1-53 bankruptcy does not have force or validity and may not be a lien on
1-54 real property acquired by the debtor after the petition for debtor
1-55 relief was filed.
1-56 Sec. 52.043. EXCEPTIONS TO DISCHARGE AND CANCELLATION. A
1-57 judgment lien is not affected by this subchapter and may be
1-58 enforced if the lien is against real property owned by the debtor
1-59 before a petition for debtor relief was filed under federal
1-60 bankruptcy law and:
1-61 (1) the debt or obligation evidenced by the judgment
1-62 is not discharged in bankruptcy; or
1-63 (2) the property is not exempted in the bankruptcy and
1-64 is abandoned during the bankruptcy.
1-65 SECTION 4. This Act takes effect September 1, 1993.
1-66 SECTION 5. The importance of this legislation and the
1-67 crowded condition of the calendars in both houses create an
1-68 emergency and an imperative public necessity that the
2-1 constitutional rule requiring bills to be read on three several
2-2 days in each house be suspended, and this rule is hereby suspended.
2-3 * * * * *
2-4 Austin,
2-5 Texas
2-6 May 11, 1993
2-7 Hon. Bob Bullock
2-8 President of the Senate
2-9 Sir:
2-10 We, your Committee on Jurisprudence to which was referred H.B.
2-11 No. 1876, have had the same under consideration, and I am
2-12 instructed to report it back to the Senate with the recommendation
2-13 that it do pass and be printed.
2-14 Henderson,
2-15 Chairman
2-16 * * * * *
2-17 WITNESSES
2-18 FOR AGAINST ON
2-19 ___________________________________________________________________
2-20 Name: Randy Lee x
2-21 Representing: Stewart Title
2-22 City: Austin
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