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