Texas Property Code

Title 5. Exempt Property and Liens


Main Index


SUBTITLE A. PROPERTY EXEMPT FROM CREDITORS' CLAIMS

CHAPTER 41. INTERESTS IN LAND

SUBCHAPTER A. EXEMPTIONS IN LAND DEFINED

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§ 41.001 • INTERESTS IN LAND EXEMPT FROM SEIZURE

§ 41.002 • DEFINITION OF HOMESTEAD

§ 41.003 • TEMPORARY RENTING OF A HOMESTEAD

§ 41.004 • ABANDONMENT OF A HOMESTEAD

§ 41.005 • VOLUNTARY DESIGNATION OF HOMESTEAD

§ 41.0051 • DISCLAIMER AND DISCLOSURE REQUIRED

§ 41.006 • CERTAIN SALES OF HOMESTEAD

§ 41.007 • HOME IMPROVEMENT CONTRACT

§ 41.008 • CONFLICT WITH FEDERAL LAW

SUBCHAPTER B. DESIGNATION OF A HOMESTEAD IN AID OF ENFORCEMENT OF A JUDGMENT DEBT

§ 41.021 • NOTICE TO DESIGNATE

§ 41.022 • DESIGNATION BY HOMESTEAD CLAIMANT

§ 41.023 • DESIGNATION BY COMMISSIONER

§ 41.024 • SALE OF EXCESS


CHAPTER 42. PERSONAL PROPERTY

§ 42.001 • PERSONAL PROPERTY EXEMPTION

§ 42.002 • PERSONAL PROPERTY

§ 42.0021 • ADDITIONAL EXEMPTION FOR RETIREMENT PLAN

§ 42.0022 • EXEMPTION FOR COLLEGE SAVINGS PLANS

§ 42.003 • DESIGNATION OF EXEMPT PROPERTY

§ 42.004 • TRANSFER OF NONEXEMPT PROPERTY

§ 42.005 • CHILD SUPPORT LIENS


SUBTITLE B. LIENS

CHAPTER 51. PROVISIONS GENERALLY APPLICABLE TO LIENS

§ 51.0001 • DEFINITIONS

§ 51.001 • EFFECT ON OTHER LIENS

§ 51.002 • SALE OF REAL PROPERTY UNDER CONTRACT LIEN

§ 51.0021 • NOTICE OF CHANGE OF ADDRESS REQUIRED

§ 51.0025 • ADMINISTRATION OF FORECLOSURE BY MORTGAGE SERVICER

§ 51.003 • DEFICIENCY JUDGMENT

§ 51.004 • JUDICIAL FORECLOSURE--DEFICIENCY

§ 51.005 • JUDICIAL OR NONJUDICIAL FORECLOSURE AFTER JUDGMENT AGAINST GUARANTOR--DEFICIENCY

§ 51.006 • DEED-OF-TRUST FORECLOSURE AFTER DEED IN LIEU OF FORECLOSURE

§ 51.007 • TRUSTEE UNDER DEED OF TRUST, CONTRACT LIEN OR SECURITY INSTRUMENT

§ 51.0075 • AUTHORITY OF TRUSTEE OR SUBSTITUTE TRUSTEE

§ 51.008 • CERTAIN LIENS ON REAL PROPERTY

§ 51.009 • FORECLOSED PROPERTY SOLD "AS IS"


CHAPTER 52. JUDGMENT LIEN

SUBCHAPTER A. GENERAL PROVISIONS

§ 52.001 - § 52.007.  OMITTED

SUBCHAPTER B. -- CANCELLATION OF JUDGMENTS AND JUDGMENT LIENS AGAINST BANKRUPTS -- ABSTRACT RECORDED BEFORE SEPTEMBER 1, 1993

§ 52.021 • DISCHARGE AND CANCELLATION

§ 52.022 • APPLICATION FOR COURT ORDER

§ 52.023 • NOTICE OF APPLICATION

§ 52.024 • COURT ORDER

§ 52.025 • EFFECT ON LIEN OF DISCHARGE OF DEBT IN BANKRUPTCY

SUBCHAPTER C. -- CANCELLATION OF JUDGMENTS AND JUDGMENT LIENS AGAINST DEBTORS -- ABSTRACT RECORDED ON OR AFTER SEPTEMBER 1, 1993

§ 52.041 • APPLICATION OF SUBCHAPTER

§ 52.042 • DISCHARGE AND CANCELLATION

§ 52.043 • EXCEPTIONS TO DISCHARGE AND CANCELLATION


SUBTITLE A. PROPERTY EXEMPT FROM CREDITORS' CLAIMS

CHAPTER 41. INTERESTS IN LAND

SUBCHAPTER A. EXEMPTIONS IN LAND DEFINED

§ 41.001. INTERESTS IN LAND EXEMPT FROM SEIZURE

(a) A homestead and one or more lots used for a place of burial of the dead are exempt from seizure for the claims of creditors except for encumbrances properly fixed on homestead property. 

(b) Encumbrances may be properly fixed on homestead property for:

(1) purchase money; 

(2) taxes on the property;

(3) work and material used in constructing improvements on the property if contracted for in writing as provided by Sections 53.254(a), (b), and (c); 

(4) an owelty of partition imposed against the entirety of the property by a court order or by a written agreement of the parties to the partition, including a debt of one spouse in favor of the other spouse resulting from a division or an award of a family homestead in a divorce proceeding; 

(5) the refinance of a lien against a homestead, including a federal tax lien resulting from the tax debt of both spouses, if the homestead is a family homestead, or from the tax debt of the owner;

(6) an extension of credit that meets the requirements of Section 50(a)(6), Article XVI, Texas Constitution; or 

(7) a reverse mortgage that meets the requirements of Sections 50(k)-(p), Article XVI, Texas Constitution.

(c) The homestead claimant's proceeds of a sale of a homestead are not subject to seizure for a creditor's claim for six months after the date of sale. 

Amended by Acts 1985, 69th Leg., ch. 840, § 1, eff. June 15, 1985; Acts 1993, 73rd Leg., ch. 48, § 2, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 121, § 1.01, eff. May 17, 1995; Acts 1995, 74th Leg., ch. 121, § 2.01; Acts 1997, 75th Leg., ch. 526, § 1, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 516, § 1, eff. Sept. 1, 2001.


§ 41.002. DEFINITION OF HOMESTEAD

(a) If used for the purposes of an urban home or as both an urban home and a place to exercise a calling or business, the homestead of a family or a single, adult person, not otherwise entitled to a homestead, shall consist of not more than 10 acres of land which may be in one or more contiguous lots, together with any improvements thereon. 

(b) If used for the purposes of a rural home, the homestead shall consist of:

(1) for a family, not more than 200 acres, which may be in one or more parcels, with the improvements thereon; or 

(2) for a single, adult person, not otherwise entitled to a homestead, not more than 100 acres, which may be in one or more parcels, with the improvements thereon.

(c) A homestead is considered to be urban if, at the time the designation is made, the property is: 

(1) located within the limits of a municipality or its extraterritorial jurisdiction or a platted subdivision; and

(2) served by police protection, paid or volunteer fire protection, and at least three of the following services provided by a municipality or under contract to a municipality: 

(A) electric;

(B) natural gas; 

(C) sewer;

(D) storm sewer; and 

(E) water.

(d) The definition of a homestead as provided in this section applies to all homesteads in this state whenever created. 

Amended by Acts 1985, 69th Leg., ch. 840, § 1, eff. June 15, 1985; Acts 1989, 71st Leg., ch. 391, § 2, eff. Aug. 28, 1989; Acts 1999, 76th Leg., ch. 1510, § 1, eff. Jan. 1, 2000; Acts 1999, 76th Leg., ch. 1510, § 2, eff. Sept. 1, 1999.


§ 41.003. TEMPORARY RENTING OF A HOMESTEAD

Temporary renting of a homestead does not change its homestead character if the homestead claimant has not acquired another homestead. 

Amended by Acts 1985, 69th Leg., ch. 840, § 1, eff. June 15, 1985.


§ 41.004. ABANDONMENT OF A HOMESTEAD

If a homestead claimant is married, a homestead cannot be abandoned without the consent of the claimant's spouse. 

Added by Acts 1985, 69th Leg., ch. 840, § 1, eff. June 15, 1985.


§ 41.005. VOLUNTARY DESIGNATION OF HOMESTEAD

(a) If a rural homestead of a family is part of one or more parcels containing a total of more than 200 acres, the head of the family and, if married, that person's spouse may voluntarily designate not more than 200 acres of the property as the homestead. If a rural homestead of a single adult person, not otherwise entitled to a homestead, is part of one or more parcels containing a total of more than 100 acres, the person may voluntarily designate not more than 100 acres of the property as the homestead. 

(b) If an urban homestead of a family, or an urban homestead of a single adult person not otherwise entitled to a homestead, is part of one or more contiguous lots containing a total of more than 10 acres, the head of the family and, if married, that person's spouse or the single adult person, as applicable, may voluntarily designate not more than 10 acres of the property as the homestead. 

(c) Except as provided by Subsection (e) or Subchapter B, to designate property as a homestead, a person or persons, as applicable, must make the designation in an instrument that is signed and acknowledged or proved in the manner required for the recording of other instruments. The person or persons must file the designation with the county clerk of the county in which all or part of the property is located. The clerk shall record the designation in the county deed records. The designation must contain: 

(1) a description sufficient to identify the property designated;

(2) a statement by the person or persons who executed the instrument that the property is designated as the homestead of the person's family or as the homestead of a single adult person not otherwise entitled to a homestead; 

(3) the name of the current record title holder of the property; and

(4) for a rural homestead, the number of acres designated and, if there is more than one survey, the number of acres in each. 

(d) A person or persons, as applicable, may change the boundaries of a homestead designated under Subsection (c) by executing and recording an instrument in the manner required for a voluntary designation under that subsection. A change under this subsection does not impair rights acquired by a party before the change. 

(e) Except as otherwise provided by this subsection, property on which a person receives an exemption from taxation under Section 11.43, Tax Code, is considered to have been designated as the person's homestead for purposes of this subchapter if the property is listed as the person's residence homestead on the most recent appraisal roll for the appraisal district established for the county in which the property is located. If a person designates property as a homestead under Subsection (c) or Subchapter B and a different property is considered to have been designated as the person's homestead under this subsection, the designation under Subsection (c) or Subchapter B, as applicable, prevails for purposes of this chapter. 

(f) If a person or persons, as applicable, have not made a voluntary designation of a homestead under this section as of the time a writ of execution is issued against the person, any designation of the person's or persons' homestead must be made in accordance with Subchapter B

(g) An instrument that made a voluntary designation of a homestead in accordance with prior law and that is on file with the county clerk on September 1, 1987, is considered a voluntary designation of a homestead under this section. 

Added by Acts 1987, 70th Leg., ch. 727, § 1, eff. Aug. 31, 1987. Amended by Acts 1993, 73rd Leg., ch. 48, § 3, eff. Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 297, § 1, eff. Aug. 1, 1993; Acts 1997, 75th Leg., ch. 846, § 1, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1510, § 3, eff. Jan. 1, 2000.


§ 41.0051. DISCLAIMER AND DISCLOSURE REQUIRED

(a) A person may not deliver a written advertisement offering, for a fee, to designate property as a homestead as provided by Section 41.005 unless there is a disclaimer on the advertisement that is conspicuous and printed in 14-point boldface type or 14-point uppercase typewritten letters that makes the following statement or a substantially similar statement: 

THIS DOCUMENT IS AN ADVERTISEMENT OF SERVICES. IT IS NOT AN OFFICIAL DOCUMENT OF THE STATE OF TEXAS.

(b) A person who solicits solely by mail or by telephone a homeowner to pay a fee for the service of applying for a property tax refund from a tax appraisal district or other governmental body on behalf of the homeowner shall, before accepting money from the homeowner or signing a contract with the homeowner for the person's services, disclose to the homeowner the name of the tax appraisal district or other governmental body that owes the homeowner a refund. 

(c) A person's failure to provide a disclaimer on an advertisement as required by Subsection (a) or to provide the disclosure required by Subsection (b) is considered a false, misleading, or deceptive act or practice for purposes of Section 17.46(a), Business & Commerce Code, and is subject to action by the consumer protection division of the attorney general's office as provided by Section 17.46(a), Business & Commerce Code. 

Added by Acts 2001, 77th Leg., ch. 341, § 1, eff. Sept. 1, 2001. Amended by Acts 2003, 78th Leg., ch. 1191, § 1, 2, eff. Sept. 1, 2003.


§ 41.006. CERTAIN SALES OF HOMESTEAD

(a) Except as provided by Subsection (c), any sale or purported sale in whole or in part of a homestead at a fixed purchase price that is less than the appraised fair market value of the property at the time of the sale or purported sale, and in connection with which the buyer of the property executes a lease of the property to the seller at lease payments that exceed the fair rental value of the property, is considered to be a loan with all payments made from the seller to the buyer in excess of the sales price considered to be interest subject to Title 4, Finance Code. 

(b) The taking of any deed in connection with a transaction described by this section is a deceptive trade practice under Subchapter E, Chapter 17, Business & Commerce Code, and the deed is void and no lien attaches to the homestead property as a result of the purported sale. 

(c) This section does not apply to the sale of a family homestead to a parent, stepparent, grandparent, child, stepchild, brother, half brother, sister, half sister, or grandchild of an adult member of the family. 

Added by Acts 1987, 70th Leg., ch. 1130, § 1, eff. Sept. 1, 1987. Amended by Acts 1999, 76th Leg., ch. 62, § 7.84, eff. Sept. 1, 1999.


§ 41.007. HOME IMPROVEMENT CONTRACT

(a) A contract described by Section 41.001(b)(3) must contain the following warning conspicuously printed, stamped, or typed in a size equal to at least 10-point bold type or computer equivalent, next to the owner's signature line on the contract: 

"IMPORTANT NOTICE: You and your contractor are responsible for meeting the terms and conditions of this contract. If you sign this contract and you fail to meet the terms and conditions of this contract, you may lose your legal ownership rights in your home. KNOW YOUR RIGHTS AND DUTIES UNDER THE LAW."

(b) A violation of Subsection (a) of this section is a false, misleading, or deceptive act or practice within the meaning of Section 17.46, Business & Commerce Code, and is actionable in a public or private suit brought under the provisions of the Deceptive Trade Practices-Consumer Protection Act (Subchapter E, Chapter 17, Business & Commerce Code). 

Added by Acts 1987, 70th Leg., ch. 116, § 1, eff. Sept. 1, 1987. Renumbered from § 41.005 by Acts 1989, 71st Leg., ch. 2, § 16.01(30), eff. Aug. 28, 1989. Amended by Acts 1993, 73rd Leg., ch. 48, § 4, eff. Sept. 1, 1993.


§ 41.008. CONFLICT WITH FEDERAL LAW

To the extent of any conflict between this subchapter and any federal law that imposes an upper limit on the amount, including the monetary amount or acreage amount, of homestead property a person may exempt from seizure, this subchapter prevails to the extent allowed under federal law. 

Added by Acts 1999, 76th Leg., ch. 1510, § 4.


SUBCHAPTER B. DESIGNATION OF A HOMESTEAD IN AID OF ENFORCEMENT OF A JUDGMENT DEBT

§ 41.021. NOTICE TO DESIGNATE

If an execution is issued against a holder of an interest in land of which a homestead may be a part and the judgment debtor has not made a voluntary designation of a homestead under Section 41.005, the judgment creditor may give the judgment debtor notice to designate the homestead as defined in Section 41.002. The notice shall state that if the judgment debtor fails to designate the homestead within the time allowed by Section 41.022, the court will appoint a commissioner to make the designation at the expense of the judgment debtor. 

Amended by Acts 1985, 69th Leg., ch. 840, § 1, eff. June 15, 1985; Acts 1987, 70th Leg., ch. 727, § 2, eff. Aug. 31, 1987.


§ 41.022. DESIGNATION BY HOMESTEAD CLAIMANT

At any time before 10 a.m. on the Monday next after the expiration of 20 days after the date of service of the notice to designate, the judgment debtor may designate the homestead as defined in Section 41.002 by filing a written designation, signed by the judgment debtor, with the justice or clerk of the court from which the writ of execution was issued, together with a plat of the area designated. 

Amended by Acts 1985, 69th Leg., ch. 840, § 1, eff. June 15, 1985.


§ 41.023. DESIGNATION BY COMMISSIONER

(a) If a judgment debtor who has not made a voluntary designation of a homestead under Section 41.005 does not designate a homestead as provided in Section 41.022, on motion of the judgment creditor, filed within 90 days after the issuance of the writ of execution, the court from which the writ of execution issued shall appoint a commissioner to designate the judgment debtor's homestead. The court may appoint a surveyor and others as may be necessary to assist the commissioner. The commissioner shall file his designation of the judgment debtor's homestead in a written report, together with a plat of the area designated, with the justice or clerk of the court not more than 60 days after the order of appointment is signed or within such time as the court may allow. 

(b) Within 10 days after the commissioner's report is filed, the judgment debtor or the judgment creditor may request a hearing on the issue of whether the report should be confirmed, rejected, or modified as may be deemed appropriate in the particular circumstances of the case. The commissioner's report may be contradicted by evidence from either party, when exceptions to it or any item thereof have been filed before the hearing, but not otherwise. After the hearing, or if there is no hearing requested, the court shall designate the homestead as deemed appropriate and order sale of the excess. 

(c) The commissioner, a surveyor, and others appointed to assist the commissioner are entitled to such fees and expenses as are deemed reasonable by the court. The court shall tax these fees and expenses against the judgment debtor as part of the costs of execution. 

Amended by Acts 1985, 69th Leg., ch. 840, § 1, eff. June 15, 1985; Acts 1987, 70th Leg., ch. 727, § 3, eff. Aug. 31, 1987.


§ 41.024. SALE OF EXCESS

An officer holding an execution sale of property of a judgment debtor whose homestead has been designated under this chapter may sell the excess of the judgment debtor's interest in land not included in the homestead. 

Amended by Acts 1985, 69th Leg., ch. 840, § 1, eff. June 15, 1985; Acts 1987, 70th Leg., ch. 727, § 4, eff. Aug. 31, 1987.


CHAPTER 42. PERSONAL PROPERTY

§ 42.001. PERSONAL PROPERTY EXEMPTION

(a) Personal property, as described in Section 42.002, is exempt from garnishment, attachment, execution, or other seizure if: 

(1) the property is provided for a family and has an aggregate fair market value of not more than $60,000, exclusive of the amount of any liens, security interests, or other charges encumbering the property; or

(2) the property is owned by a single adult, who is not a member of a family, and has an aggregate fair market value of not more than $30,000, exclusive of the amount of any liens, security interests, or other charges encumbering the property. 

(b) The following personal property is exempt from seizure and is not included in the aggregate limitations prescribed by Subsection (a):

(1) current wages for personal services, except for the enforcement of court-ordered child support payments; 

(2) professionally prescribed health aids of a debtor or a dependent of a debtor; and

(3) alimony, support, or separate maintenance received or to be received by the debtor for the support of the debtor or a dependent of the debtor. 

(c) This section does not prevent seizure by a secured creditor with a contractual landlord's lien or other security in the property to be seized.

(d) Unpaid commissions for personal services not to exceed 25 percent of the aggregate limitations prescribed by Subsection (a) are exempt from seizure and are included in the aggregate. 

Acts 1983, 68th Leg., p. 3522, ch. 576, § 1, eff. Jan. 1, 1984. Amended by Acts 1991, 72nd Leg., ch. 175, § 1, eff. May 24, 1991; Acts 1997, 75th Leg., ch. 1046, § 1, eff. Sept. 1, 1997.


§ 42.002. PERSONAL PROPERTY

(a) The following personal property is exempt under Section 42.001(a)

(1) home furnishings, including family heirlooms;

(2) provisions for consumption;

(3) farming or ranching vehicles and implements; 

(4) tools, equipment, books, and apparatus, including boats and motor vehicles used in a trade or profession;

(5) wearing apparel;

(6) jewelry not to exceed 25 percent of the aggregate limitations prescribed by Section 42.001(a)

(7) two firearms;

(8) athletic and sporting equipment, including bicycles;

(9) a two-wheeled, three-wheeled, or four-wheeled motor vehicle for each member of a family or single adult who holds a driver's license or who does not hold a driver's license but who relies on another person to operate the vehicle for the benefit of the nonlicensed person; 

(10) the following animals and forage on hand for their consumption:

(A) two horses, mules, or donkeys and a saddle, blanket, and bridle for each;

(B) 12 head of cattle; 

(C) 60 head of other types of livestock; and

(D) 120 fowl; and

(11) household pets. 

(b) Personal property, unless precluded from being encumbered by other law, may be encumbered by a security interest under Subchapter B, Chapter 9, Business & Commerce Code, or Subchapter F, Chapter 501, Transportation Code, or by a lien fixed by other law, and the security interest or lien may not be avoided on the ground that the property is exempt under this chapter. 

Acts 1983, 68th Leg., p. 3522, ch. 576, § 1, eff. Jan. 1, 1984. Amended by Acts 1991, 72nd Leg., ch. 175, § 1, eff. May 24, 1991; Acts 1993, 73rd Leg., ch. 216, § 1, eff. May, 17, 1993; Acts 1997, 75th Leg., ch. 165, § 30.245, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 414, § 2.36, eff. July 1, 2001; Acts 1999, 76th Leg., ch. 846, § 1, eff. Aug. 30, 1999.


§ 42.0021. ADDITIONAL EXEMPTION FOR RETIREMENT PLAN

(a) In addition to the exemption prescribed by Section 42.001, a person's right to the assets held in or to receive payments, whether vested or not, under any stock bonus, pension, profit-sharing, or similar plan, including a retirement plan for self-employed individuals, and under any annuity or similar contract purchased with assets distributed from that type of plan, and under any retirement annuity or account described by Section 403(b) or 408A of the Internal Revenue Code of 1986, and under any individual retirement account or any individual retirement annuity, including a simplified employee pension plan, is exempt from attachment, execution, and seizure for the satisfaction of debts unless the plan, contract, or account does not qualify under the applicable provisions of the Internal Revenue Code of 1986. A person's right to the assets held in or to receive payments, whether vested or not, under a government or church plan or contract is also exempt unless the plan or contract does not qualify under the definition of a government or church plan under the applicable provisions of the federal Employee Retirement Income Security Act of 1974. If this subsection is held invalid or preempted by federal law in whole or in part or in certain circumstances, the subsection remains in effect in all other respects to the maximum extent permitted by law. 

(b) Contributions to an individual retirement account, other than contributions to a Roth IRA described in Section 408A, Internal Revenue Code of 1986, or annuity that exceed the amounts deductible under the applicable provisions of the Internal Revenue Code of 1986 and any accrued earnings on such contributions are not exempt under this section unless otherwise exempt by law. Amounts qualifying as nontaxable rollover contributions under Section 402(a)(5), 403(a)(4), 403(b)(8), or 408(d)(3) of the Internal Revenue Code of 1986 before January 1, 1993, are treated as exempt amounts under Subsection (a). Amounts treated as qualified rollover contributions under Section 408A, Internal Revenue Code of 1986, are treated as exempt amounts under Subsection (a). In addition, amounts qualifying as nontaxable rollover contributions under Section 402(c), 402(e)(6), 402(f), 403(a)(4), 403(a)(5), 403(b)(8), 403(b)(10), 408(d)(3), or 408A of the Internal Revenue Code of 1986 on or after January 1, 1993, are treated as exempt amounts under Subsection (a)

(c) Amounts distributed from a plan or contract entitled to the exemption under Subsection (a) are not subject to seizure for a creditor's claim for 60 days after the date of distribution if the amounts qualify as a nontaxable rollover contribution under Subsection (b)

(d) A participant or beneficiary of a stock bonus, pension, profit-sharing, retirement plan, or government plan is not prohibited from granting a valid and enforceable security interest in the participant's or beneficiary's right to the assets held in or to receive payments under the plan to secure a loan to the participant or beneficiary from the plan, and the right to the assets held in or to receive payments from the plan is subject to attachment, execution, and seizure for the satisfaction of the security interest or lien granted by the participant or beneficiary to secure the loan. 

(e) If Subsection (a) is declared invalid or preempted by federal law, in whole or in part or in certain circumstances, as applied to a person who has not brought a proceeding under Title 11, United States Code, the subsection remains in effect, to the maximum extent permitted by law, as to any person who has filed that type of proceeding. 

(f) A reference in this section to a specific provision of the Internal Revenue Code of 1986 includes a subsequent amendment of the substance of that provision. 

Added by Acts 1987, 70th Leg., ch. 376, § 1, eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 1122, § 1, eff. Sept. 1, 1989; Acts 1995, 74th Leg., ch. 963, § 1, eff. Aug. 28, 1995; Acts 1999, 76th Leg., ch. 106, § 1, eff. Sept. 1, 1999.


§ 42.0022. EXEMPTION FOR COLLEGE SAVINGS PLANS

(a) In addition to the exemption prescribed by Section 42.001, a person's right to the assets held in or to receive payments or benefits under any of the following is exempt from attachment, execution, and seizure for the satisfaction of debts: 

(1) any fund or plan established under Subchapter F, Chapter 54, Education Code, including the person's interest in a prepaid tuition contract;

(2) any fund or plan established under Subchapter G, Chapter 54, Education Code, including the person's interest in a savings trust account; or 

(3) any qualified tuition program of any state that meets the requirements of Section 529, Internal Revenue Code of 1986, as amended.

(b) If any portion of this section is held to be invalid or preempted by federal law in whole or in part or in certain circumstances, this section remains in effect in all other respects to the maximum extent permitted by law. 

Added by Acts 2003, 78th Leg., ch. 113, § 1, eff. Sept. 1, 2003.


§ 42.003. DESIGNATION OF EXEMPT PROPERTY

(a) If the number or amount of a type of personal property owned by a debtor exceeds the exemption allowed by Section 42.002 and the debtor can be found in the county where the property is located, the officer making a levy on the property shall ask the debtor to designate the personal property to be levied on. If the debtor cannot be found in the county or the debtor fails to make a designation within a reasonable time after the officer's request, the officer shall make the designation. 

(b) If the aggregate value of a debtor's personal property exceeds the amount exempt from seizure under Section 42.001(a), the debtor may designate the portion of the property to be levied on. If, after a court's request, the debtor fails to make a designation within a reasonable time or if for any reason a creditor contests that the property is exempt, the court shall make the designation. 

Acts 1983, 68th Leg., p. 3524, ch. 576, § 1, eff. Jan. 1, 1984. Amended by Acts 1991, 72nd Leg., ch. 175, § 1, eff. May 24, 1991.


§ 42.004. TRANSFER OF NONEXEMPT PROPERTY

(a) If a person uses the property not exempt under this chapter to acquire, obtain an interest in, make improvement to, or pay an indebtedness on personal property which would be exempt under this chapter with the intent to defraud, delay, or hinder an interested person from obtaining that to which the interested person is or may be entitled, the property, interest, or improvement acquired is not exempt from seizure for the satisfaction of liabilities. If the property, interest, or improvement is acquired by discharging an encumbrance held by a third person, a person defrauded, delayed, or hindered is subrogated to the rights of the third person. 

(b) A creditor may not assert a claim under this section more than two years after the transaction from which the claim arises. A person with a claim that is unliquidated or contingent at the time of the transaction may not assert a claim under this section more than one year after the claim is reduced to judgment. 

(c) It is a defense to a claim under this section that the transfer was made in the ordinary course of business by the person making the transfer. 

Acts 1983, 68th Leg., p. 3524, ch. 576, § 1, eff. Jan. 1, 1984. Amended by Acts 1991, 72nd Leg., ch. 175, § 1, eff. May 24, 1991.


§ 42.005. CHILD SUPPORT LIENS

Sections 42.001, 42.002, and 42.0021 of this code do not apply to a child support lien established under Subchapter G, Chapter 157, Family Code. 

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 15, § 4.07, eff. Sept. 1, 1991. Amended by Acts 1997, 75th Leg., ch. 165, § 7.56, eff. Sept. 1, 1997.


SUBTITLE B. LIENS

CHAPTER 51. PROVISIONS GENERALLY APPLICABLE TO LIENS

§ 51.0001. DEFINITIONS

In this chapter: 

(1) "Book entry system" means a national book entry system for registering a beneficial interest in a security instrument that acts as a nominee for the grantee, beneficiary, owner, or holder of the security instrument and its successors and assigns. 

(2) "Debtor's last known address" means:

(A) for a debt secured by the debtor's residence, the debtor's residence address unless the debtor provided the mortgage servicer a written change of address before the date the mortgage servicer mailed a notice required by Section 51.002; or 

(B) for a debt other than a debt described by Paragraph (A), the debtor's last known address as shown by the records of the mortgage servicer of the security instrument unless the debtor provided the current mortgage servicer a written change of address before the date the mortgage servicer mailed a notice required by Section 51.002

(3) "Mortgage servicer" means the last person to whom a mortgagor has been instructed by the current mortgagee to send payments for the debt secured by a security instrument. A mortgagee may be the mortgage servicer.

(4) "Mortgagee" means: 

(A) the grantee, beneficiary, owner, or holder of a security instrument;

(B) a book entry system; or 

(C) if the security interest has been assigned of record, the last person to whom the security interest has been assigned of record.

(5) "Mortgagor" means the grantor of a security instrument. 

(6) "Security instrument" means a deed of trust, mortgage, or other contract lien on an interest in real property.

(7) "Substitute trustee" means a person appointed by the current mortgagee or mortgage servicer under the terms of the security instrument to exercise the power of sale.

(8) "Trustee" means a person authorized to exercise the power of sale under the terms of a security instrument.

Added by Acts 2003, 78th Leg., ch. 554, § 1, eff. Jan. 1, 2004.


§ 51.001. EFFECT ON OTHER LIENS

Except as provided by Chapter 59, this subtitle does not affect: 

(1) the right to create a lien by special contract or agreement; or

(2) a lien that is not treated in this subtitle, including a lien arising under common law, in equity, or under another statute of this state. 

Acts 1983, 68th Leg., p. 3525, ch. 576, § 1, eff. Jan. 1, 1984.


§ 51.002. SALE OF REAL PROPERTY UNDER CONTRACT LIEN

(a) A sale of real property under a power of sale conferred by a deed of trust or other contract lien must be a public sale at auction held between 10 a.m. and 4 p.m. of the first Tuesday of a month. The sale must take place at the county courthouse in the county in which the land is located, or if the property is located in more than one county, the sale may be made at the courthouse in any county in which the property is located. The commissioners court shall designate the area at the courthouse where the sales are to take place and shall record the designation in the real property records of the county. The sale must occur in the designated area. If no area is designated by the commissioners court, the notice of sale must designate the area at the courthouse where the sale covered by that notice is to take place, and the sale must occur in that area. 

(b) Notice of the sale, which must include a statement of the earliest time at which the sale will begin, must be given at least 21 days before the date of the sale:

(1) by posting at the courthouse door of each county in which the property is located a written notice designating the county in which the property will be sold; 

(2) by filing in the office of the county clerk of each county in which the property is located a copy of the notice posted under Subdivision (1); and

(3) by the mortgage servicer of the debt to which the power of sale is related serving written notice of the sale by certified mail on each debtor who, according to the records of the mortgage servicer of the debt, is obligated to pay the debt. 

(c) The sale must begin at the time stated in the notice of sale or not later than three hours after that time.

(d) Notwithstanding any agreement to the contrary, the mortgage servicer of the debt shall serve a debtor in default under a deed of trust or other contract lien on real property used as the debtor's residence with written notice by certified mail stating that the debtor is in default under the deed of trust or other contract lien and giving the debtor at least 20 days to cure the default before notice of sale can be given under Subsection (b). The entire calendar day on which the notice required by this subsection is given, regardless of the time of day at which the notice is given, is included in computing the 20-day notice period required by this subsection, and the entire calendar day on which notice of sale is given under Subsection (b) is excluded in computing the 20-day notice period. 

(e) Service of a notice under this section by certified mail is complete when the notice is deposited in the United States mail, postage prepaid and addressed to the debtor at the debtor's last known address. The affidavit of a person knowledgeable of the facts to the effect that service was completed is prima facie evidence of service. 

(f) Each county clerk shall keep all notices filed under Subdivision (2) of Subsection (b) in a convenient file that is available to the public for examination during normal business hours. The clerk may dispose of the notices after the date of sale specified in the notice has passed. The clerk shall receive a fee of $2 for each notice filed. 

(g) The entire calendar day on which the notice of sale is given, regardless of the time of day at which the notice is given, is included in computing the 21-day notice period required by Subsection (b), and the entire calendar day of the foreclosure sale is excluded. 

Acts 1983, 68th Leg., p. 3525, ch. 576, § 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, § 3(b), eff. Oct. 2, 1984; Acts 1987, 70th Leg., ch. 540, § 1, eff. Jan. 1, 1988; Acts 1993, 73rd Leg., ch. 48, § 5, eff. Sept. 1, 1993; Acts 2003, 78th Leg., ch. 554, § 2, eff. Jan. 1, 2004.


§ 51.0021. NOTICE OF CHANGE OF ADDRESS REQUIRED

A debtor shall inform the mortgage servicer of the debt in a reasonable manner of any change of address of the debtor for purposes of providing notice to the debtor under Section 51.002. 

Added by Acts 2003, 78th Leg., ch. 554, § 1, eff. Jan. 1, 2004.


§ 51.0025. ADMINISTRATION OF FORECLOSURE BY MORTGAGE SERVICER

A mortgage servicer may administer the foreclosure of property under Section 51.002 on behalf of a mortgagee if: 

(1) the mortgage servicer and the mortgagee have entered into an agreement granting the current mortgage servicer authority to service the mortgage; and 

(2) the mortgage servicer discloses in the notice required under Section 51.002

(A) that the mortgage servicer is representing the mortgagee under a servicing agreement with the mortgagee; and 

(B) the name and address of the mortgagee. 

Added by Acts 2003, 78th Leg., ch. 554, § 1, eff. Jan. 1, 2004.


§ 51.003. DEFICIENCY JUDGMENT

(a) If the price at which real property is sold at a foreclosure sale under Section 51.002 is less than the unpaid balance of the indebtedness secured by the real property, resulting in a deficiency, any action brought to recover the deficiency must be brought within two years of the foreclosure sale and is governed by this section. 

(b) Any person against whom such a recovery is sought by motion may request that the court in which the action is pending determine the fair market value of the real property as of the date of the foreclosure sale. The fair market value shall be determined by the finder of fact after the introduction by the parties of competent evidence of the value. Competent evidence of value may include, but is not limited to, the following: 

(1) expert opinion testimony;

(2) comparable sales; 

(3) anticipated marketing time and holding costs;

(4) cost of sale; and 

(5) the necessity and amount of any discount to be applied to the future sales price or the cashflow generated by the property to arrive at a current fair market value. 

(c) If the court determines that the fair market value is greater than the sale price of the real property at the foreclosure sale, the persons against whom recovery of the deficiency is sought are entitled to an offset against the deficiency in the amount by which the fair market value, less the amount of any claim, indebtedness, or obligation of any kind that is secured by a lien or encumbrance on the real property that was not extinguished by the foreclosure, exceeds the sale price. If no party requests the determination of fair market value or if such a request is made and no competent evidence of fair market value is introduced, the sale price at the foreclosure sale shall be used to compute the deficiency. 

(d) Any money received by a lender from a private mortgage guaranty insurer shall be credited to the account of the borrower prior to the lender bringing an action at law for any deficiency owed by the borrower. Notwithstanding the foregoing, the credit required by this subsection shall not apply to the exercise by a private mortgage guaranty insurer of its subrogation rights against a borrower or other person liable for any deficiency. 

Added by Acts 1991, 72nd Leg., ch. 12, § 1, eff. April 1, 1991.


§ 51.004. JUDICIAL FORECLOSURE--DEFICIENCY

(a) This section applies if: 

(1) real property subject to a deed of trust or other contract lien is sold at a foreclosure sale under a court judgment foreclosing the lien and ordering the sale; and

(2) the price at which the real property is sold is less than the unpaid balance of the indebtedness secured by the real property, resulting in a deficiency. 

(b) Any person obligated on the indebtedness, including a guarantor, may bring an action in the district court in the county in which the real property is located for a determination of the fair market value of the real property as of the date of the foreclosure sale. The suit must be brought not later than the 90th day after the date of the foreclosure sale unless the suit is brought by a guarantor who did not receive actual notice of the sale before the date of sale, in which case the suit must be brought by the guarantor not later than the 90th day after the date the guarantor received actual notice of the sale. The fair market value shall be determined by the finder of fact after the introduction by the parties of competent evidence of the value. Competent evidence of value may include: 

(1) expert opinion testimony;

(2) comparable sales; 

(3) anticipated marketing time and holding costs;

(4) cost of sale; and 

(5) the necessity and amount of any discount to be applied to the future sales price or the cash flow generated by the property to arrive at a fair market value as of the date of the foreclosure sale. 

(c) If the finder of fact determines that the fair market value is greater than the sale price of the real property at the foreclosure sale, the persons obligated on the indebtedness, including guarantors, are entitled to an offset against the deficiency in the amount by which the fair market value, less the amount of any claim, indebtedness, or obligation of any kind that is secured by a lien or encumbrance on the real property that was not extinguished by the foreclosure, exceeds the sale price. If no competent evidence of fair market value is introduced, the sale price at the foreclosure sale shall be used to compute the deficiency. 

(d) Any money received by a lender from a private mortgage guaranty insurer shall be credited to the account of the borrower before the lender brings an action at law for any deficiency owed by the borrower. However, the credit required by this subsection does not apply to the exercise by a private mortgage guaranty insurer of its subrogation rights against a borrower or other person liable for any deficiency. 

Added by Acts 1991, 72nd Leg., ch. 361, § 1, eff. June 5, 1991.


§ 51.005. JUDICIAL OR NONJUDICIAL FORECLOSURE AFTER JUDGMENT AGAINST GUARANTOR--DEFICIENCY

(a) This section applies if: 

(1) the holder of a debt obtains a court judgment against a guarantor of the debt;

(2) real property subject to a deed of trust or other contract lien securing the guaranteed debt is sold at a foreclosure sale under Section 51.002 or under a court judgment foreclosing the lien and ordering the sale; 

(3) the price at which the real property is sold is less than the unpaid balance of the indebtedness secured by the real property, resulting in a deficiency; and

(4) a motion or suit to determine the fair market value of the real property as of the date of the foreclosure sale has not been filed under Section 51.003 or 51.004

(b) The guarantor may bring an action in the district court in the county in which the real property is located for a determination of the fair market value of the real property as of the date of the foreclosure sale. The suit must be brought not later than the 90th day after the date of the foreclosure sale or the date the guarantor receives actual notice of the foreclosure sale, whichever is later. The fair market value shall be determined by the finder of fact after the introduction by the parties of competent evidence of the value. Competent evidence of value may include: 

(1) expert opinion testimony;

(2) comparable sales; 

(3) anticipated marketing time and holding costs;

(4) cost of sale; and 

(5) the necessity and amount of any discount to be applied to the future sales price or the cash flow generated by the property to arrive at a fair market value as of the date of the foreclosure sale. 

(c) If the finder of fact determines that the fair market value is greater than the sale price of the real property at the foreclosure sale, the persons obligated on the indebtedness, including guarantors, are entitled to an offset against the deficiency in the amount by which the fair market value, less the amount of any claim, indebtedness, or obligation of any kind that is secured by a lien or encumbrance on the real property that was not extinguished by the foreclosure, exceeds the sale price. If no competent evidence of fair market value is introduced, the sale price at the foreclosure sale shall be used to compute the deficiency. 

(d) Any money received by a lender from a private mortgage guaranty insurer shall be credited to the account of the borrower before the lender brings an action at law for any deficiency owed by the borrower. However, the credit required by this subsection does not apply to the exercise by a private mortgage guaranty insurer of its subrogation rights against a borrower or other person liable for any deficiency. 

Added by Acts 1991, 72nd Leg., ch. 361, § 1, eff. June 5, 1991.


§ 51.006. DEED-OF-TRUST FORECLOSURE AFTER DEED IN LIEU OF FORECLOSURE

(a) This section applies to a holder of a debt under a deed of trust who accepts from the debtor a deed conveying real property subject to the deed of trust in satisfaction of the debt. 

(b) The holder of a debt may void a deed conveying real property in satisfaction of the debt before the fourth anniversary of the date the deed is executed and foreclosed under the original deed of trust if:

(1) the debtor fails to disclose to the holder of the debt a lien or other encumbrance on the property before executing the deed conveying the property to the holder of the debt in satisfaction of the debt; and 

(2) the holder of the debt has no personal knowledge of the undisclosed lien or encumbrance on the property.

(c) A third party may conclusively rely upon the affidavit of the holder of a debt stating that the holder has voided the deed as provided in this section. 

(d) If the holder elects to void a deed in lieu of foreclosure as provided in this section, the priority of its deed of trust shall not be affected or impaired by the execution of the deed in lieu of foreclosure.

(e) If a holder accepts a deed in lieu of foreclosure, the holder may foreclose its deed of trust as provided in said deed of trust without electing to void the deed. The priority of such deed of trust shall not be affected or impaired by the deed in lieu of foreclosure. 

Added by Acts 1995, 74th Leg., ch. 1020, § 1, eff. Aug. 28, 1995.


§ 51.007.  TRUSTEE UNDER DEED OF TRUST, CONTRACT LIEN OR SECURITY INSTRUMENT.

(a) The trustee named in a suit or proceeding may plead in the answer that the trustee is not a necessary party by a verified denial stating the basis for the trustee's reasonable belief that the trustee was named as a party solely in the capacity as a trustee under a deed of trust, contract lien, or security instrument. 

(b) Within 30 days after the filing of the trustee's verified denial, a verified response is due from all parties to the suit or proceeding setting forth all matters, whether in law or fact, that rebut the trustee's verified denial. 

(c) If a party has no objection or fails to file a timely verified response to the trustee's verified denial, the trustee shall be dismissed from the suit or proceeding without prejudice. 

(d) If a respondent files a timely verified response to the trustee's verified denial, the matter shall be set for hearing.  The court shall dismiss the trustee from the suit or proceeding without prejudice if the court determines that the trustee is not a necessary party. 

(e) A dismissal of the trustee pursuant to Subsections (c) and (d) shall not prejudice a party's right to seek injunctive relief to prevent the trustee from proceeding with a foreclosure sale. 

(f) A trustee shall not be liable for any good faith error resulting from reliance on any information in law or fact provided by the mortgagor or mortgagee or their respective attorney, agent, or representative or other third party. 

Added by Acts 1999, 76th Leg., ch. 1304, § 1, eff. Sept. 1, 1999.


§ 51.0075.  AUTHORITY OF TRUSTEE OR SUBSTITUTE TRUSTEE.

(a) A trustee or substitute trustee may set reasonable conditions for conducting the public sale if the conditions are announced before bidding is opened for the first sale of the day held by the trustee or substitute trustee. 

(b) A trustee or substitute trustee is not a debt collector. 

(c) A mortgagee may appoint or may authorize a mortgage servicer to appoint a perpetual substitute trustee by power of attorney or other written instrument.  The power of attorney or written instrument must be signed by the mortgagee's representative, acknowledged, and sworn to with a jurat. 

Added by Acts 2003, 78th Leg., ch. 554, § 1, eff. Jan. 1, 2004.


§ 51.008.  CERTAIN LIENS ON REAL PROPERTY.

(a)  A lien on real property created under this code or another law of this state in favor of a governmental entity must be recorded as provided by Chapters 11 and 12 in the real property records of the county in which the property or a portion of the property is located unless: 

(1)  the lien is imposed as a result of failure to pay:

(A)  ad valorem taxes;  or 

(B)  a penalty or interest owed in connection with those taxes;  or

(2)  the law establishing the lien expressly states that recording the lien is not required. 

(b)  Any notice of the lien required by law must contain a legal description of the property.

(c)  This section does not apply to: 

(1)  a lien created under Section 89.083, Natural Resources Code;

(2)  a state tax lien under Chapter 113, Tax Code;  or 

(3)  a lien established under Chapter 61 or 213, Labor Code.

Added by Acts 2001, 77th Leg., ch. 827, § 1, eff. Sept. 1, 2001.


§ 51.009.  FORECLOSED PROPERTY SOLD "AS IS".

A purchaser at a sale of real property under Section 51.002

(1)  acquires the foreclosed property "as is" without any expressed or implied warranties, except as to warranties of title, and at the purchaser's own risk;  and

(2)  is not a consumer. 

Added by Acts 2003, 78th Leg., ch. 554, § 1, eff. Jan. 1, 2004.


CHAPTER 52. JUDGMENT LIEN

SUBCHAPTER A. GENERAL PROVISIONS

§ 52.001 - § 52.007.  OMITTED


SUBCHAPTER B. -- CANCELLATION OF JUDGMENTS AND JUDGMENT LIENS AGAINST BANKRUPTS -- ABSTRACT RECORDED BEFORE SEPTEMBER 1, 1993

§ 52.021. DISCHARGE AND CANCELLATION

(a) In accordance with this subchapter, a judgment and judgment lien may be discharged and canceled if the person against whom the judgment was rendered is discharged from his debts under federal bankruptcy law. 

(b) This subchapter applies to judgments against persons whose debts are discharged in bankruptcy and for which the abstracts of judgment are recorded before September 1, 1993, as provided by Subchapter A, regardless of the fact that the discharge in bankruptcy occurred before this law took effect. 

Acts 1983, 68th Leg., p. 3529, ch. 576, § 1, eff. Jan. 1, 1984. Amended by Acts 1993, 73rd Leg., ch. 313, § 2, eff. Sept. 1, 1993.


§ 52.022. APPLICATION FOR COURT ORDER

(a) The person who has been discharged from his debts, that person's receiver or trustee, or any other interested person may apply, on proof of the discharge, to the court in which the judgment was rendered for an order discharging and canceling the judgment and judgment lien. 

(b) A person may not apply for the order before a year has elapsed since the bankruptcy discharge. 

Acts 1983, 68th Leg., p. 3529, ch. 576, § 1, eff. Jan. 1, 1984.


§ 52.023. NOTICE OF APPLICATION

(a) Notice of the application for the order and copies of the papers on which application is made must be served on the judgment creditor or his attorney of record in the action in which the judgment was rendered. 

(b) If the residence or place of business of the judgment creditor or his attorney is known, notice must be served in the manner prescribed for service of notice in an action. 

(c) As an alternative to service under Subsection (b), the court may order that notice of the application be published in a newspaper designated in the order once a week for not more than three consecutive weeks if the applicant proves by affidavit that: 

(1) the address of neither the judgment creditor nor his attorney is known and the address of neither can be ascertained by due diligence; or

(2) the judgment creditor is not a resident of this state and his attorney is dead, removed from the state, or unknown. 

Acts 1983, 68th Leg., p. 3529, ch. 576, § 1, eff. Jan. 1, 1984.


§ 52.024. COURT ORDER

(a) The court shall conduct a hearing on the application and shall enter an order of discharge and cancellation of the judgment and any abstracts of the judgment if the debtor or bankrupt has been discharged in bankruptcy from the payment of the obligation or debt represented by the judgment. 

(b) In each county in which the court's order is recorded in the judgment lien records, the order constitutes a release, discharge, and cancellation of the judgment and of any unsatisfied judgment lien represented by an abstract that is of record in the county on the date of the order or is recorded in the county on or after the date of the order. 

Acts 1983, 68th Leg., p. 3530, ch. 576, § 1, eff. Jan. 1, 1984.


§ 52.025. EFFECT ON LIEN OF DISCHARGE OF DEBT IN BANKRUPTCY

(a) A judgment lien is not affected by the order of discharge and cancellation and may be enforced, if the lien is against real property owned by the bankrupt or debtor before the debtor was adjudged bankrupt or a petition for debtor relief was filed under federal bankruptcy law, and: 

(1) the debt or obligation evidenced by the judgment is not discharged in bankruptcy; or

(2) the property is nonexempt and is abandoned during the course of the proceeding. 

(b) Except as provided by Subsection (a), the judgment is of no force or validity and may not be a lien on real property acquired by the bankrupt or debtor after the discharge in bankruptcy.

Acts 1983, 68th Leg., p. 3530, ch. 576, § 1, eff. Jan. 1, 1984.


SUBCHAPTER C. -- CANCELLATION OF JUDGMENTS AND JUDGMENT LIENS AGAINST DEBTORS -- ABSTRACT RECORDED ON OR AFTER SEPTEMBER 1, 1993

§ 52.041. APPLICATION OF SUBCHAPTER

This subchapter applies to a judgment and judgment lien for which an abstract of judgment or judgment lien is recorded on or after September 1, 1993. 

Added by Acts 1993, 73rd Leg., ch. 313, § 3, eff. Sept. 1, 1993.


§ 52.042. DISCHARGE AND CANCELLATION

(a) A judgment is discharged and any abstract of judgment or judgment lien is canceled and released without further action in any court and may not be enforced if: 

(1) the lien is against real property owned by the debtor before a petition for debtor relief was filed under federal bankruptcy law; and 

(2) the debt or obligation evidenced by the judgment is discharged in the bankruptcy. 

(b) A judgment evidencing a debt or obligation discharged in bankruptcy does not have force or validity and may not be a lien on real property acquired by the debtor after the petition for debtor relief was filed. 

Added by Acts 1993, 73rd Leg., ch. 313, § 3, eff. Sept. 1, 1993.


§ 52.043. EXCEPTIONS TO DISCHARGE AND CANCELLATION

A judgment lien is not affected by this subchapter and may be enforced if the lien is against real property owned by the debtor before a petition for debtor relief was filed under federal bankruptcy law and: 

(1) the debt or obligation evidenced by the judgment is not discharged in bankruptcy; or

(2) the property is not exempted in the bankruptcy and is abandoned during the bankruptcy. 

Added by Acts 1993, 73rd Leg., ch. 313, § 3, eff. Sept. 1, 1993.


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