Bill Text: TX SB775 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the exemption of certain personal property from garnishment, attachment, execution, or other seizure by creditors.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-03-01 - Referred to State Affairs [SB775 Detail]
Download: Texas-2023-SB775-Introduced.html
By: Zaffirini | S.B. No. 775 | |
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relating to the exemption of certain personal property from | ||
garnishment, attachment, execution, or other seizure by creditors. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 31.002, Civil Practices and Remedies | ||
Code is amended by adding Subsection (i) to read as follows: | ||
(i) For collection of judgments on consumer debt, as defined | ||
by Texas Finance Code Section 392.001(2), a court order under this | ||
section must exempt an amount to cover basic needs equal to $3,000 | ||
from freezing and turnover. The order must direct the judgment | ||
creditor or receiver to apply the exemption under this section to | ||
amounts in a demand deposit account first, followed by any other | ||
accounts, as applicable. In the event the judgment debtor has more | ||
than one demand deposit account or other combination of accounts, | ||
the exemption shall be applied to the largest demand deposit | ||
account first followed by any additional accounts in the order of | ||
most to least funds available. The exemption provided in this | ||
section includes any amounts protected under 31 C.F.R. Part 212 and | ||
does not limit other exemptions to the extent those exemptions | ||
exceed this amount. This subsection does not apply to the | ||
enforcement of court-ordered alimony, child support, or spousal | ||
maintenance payments. | ||
SECTION 2. Section 31.002, Civil Practices and Remedies | ||
Code is amended by adding Subsection (j) to read as follows: | ||
(j) In implementing subsection (i) with regard to an account | ||
held on behalf of a judgment debtor by a financial institution, an | ||
order under this section shall direct the judgment creditor or | ||
receiver in the first instance to send a levy letter to the | ||
financial institution. With that levy letter, the judgment | ||
creditor or receiver shall include a separate form that is | ||
identical to or substantially the same as subsection (k). | ||
Section 3. Section 31.002, Civil Practices and Remedies Code | ||
is amended by adding Subsection (k) to read as follows: | ||
(k) The following demand for information, when completed, | ||
meets the obligations of the judgment creditor or receiver under | ||
subsection (j): | ||
DUTIES OF FINANCIAL INSTITUTION | ||
As noted in the levy letter and its attachments, the judgment | ||
debtor, (name of judgment debtor), has an unsatisfied | ||
judgment debt and is obligated by an order of the court to turnover | ||
non-exempt assets to the [identify judgment creditor or receiver] | ||
to satisfy that debt. Any funds equal to or less than $3,000 are | ||
not subject to levy and shall not be disbursed to a judgment | ||
creditor or receiver in response to a levy letter. As reflected by | ||
the court order attached to the levy letter, this exemption shall | ||
be applied to the largest demand deposit account first followed by | ||
any additional accounts in the order of most to least funds | ||
available. The exemption provided in this section includes any | ||
amounts protected under 31 C.F.R. Part 212 and does not limit those | ||
amounts or other amounts protected under other exemptions to the | ||
extent those exemptions exceed this amount. This exemption does | ||
not apply to the enforcement of court-ordered alimony, child | ||
support, or spousal maintenance payments. | ||
Section 4. Section 31.010(a), Civil Practices and Remedies | ||
Code is amended by adding paragraph (3) to read as follows: | ||
(3) A duties of financial institution form in the same or | ||
substantially the same form as set forth in section 31.002(k). | ||
SECTION 5. This Act takes effect September 1, 2023 |