BWM C.S.S.B. 1098 75(R)BILL ANALYSIS


FINANCIAL INSTITUTIONS
C.S.S.B. 1098
By: Wentworth (Goodman)
5-12-97
Committee Report (Substituted)


BACKGROUND 

Currently, Texas exemption laws do not presently contain a provision that
protects the right to receive alimony, maintenance, and support payments.
A couple going through a divorce are likely to have joint obligation
debts.  After divorce, a spouse needing maintenance is still obligated to
creditors even if the divorce decree provides that the other spouse is
primarily liable for these debts. Without an amendment to the exemption
statute, when the receiving spouse files for bankruptcy, the receiving
spouse may not be able to seek bankruptcy protection because of the threat
of a trustee objection.  This bill will exempt certain support payments
from seizure. 

PURPOSE

As proposed, S.B. 1098 exempts alimony, support, or separate maintenance
payments from seizure. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 42.001(b), Property Code, to provide that
alimony, support, or separate maintenance received by the debtor for the
support of the debtor and any dependent of the debtor is exempt from
seizure and is not included in the aggregate limitations prescribed by
Subsection (a). 

SECTION 2. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 3. Emergency clause.



COMPARISON OF ORIGINAL TO SUBSTITUTE

The Committee Substitute to S.B. 1098 qualifies the exempted support
payments by adding provisions that the payments have been receieved by the
debtor.