CHAPTER 42. PERSONAL PROPERTY - Texas Statutes

PROPERTY CODE

TITLE 5. EXEMPT PROPERTY AND LIENS

SUBTITLE A. PROPERTY EXEMPT FROM CREDITORS' CLAIMS

CHAPTER 42. PERSONAL PROPERTY

Sec. 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;

(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; and

(4) a religious bible or other book containing sacred writings

of a religion that is seized by a creditor other than a lessor of

real property who is exercising the lessor's contractual or

statutory right to seize personal property after a tenant

breaches a lease agreement for or abandons the real property.

(c) Except as provided by Subsection (b)(4), 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.

(e) A religious bible or other book described by Subsection

(b)(4) that is seized by a lessor of real property in the

exercise of the lessor's contractual or statutory right to seize

personal property after a tenant breaches a lease agreement for

the real property or abandons the real property may not be

included in the aggregate limitations prescribed by Subsection

(a).

Acts 1983, 68th Leg., p. 3522, ch. 576, Sec. 1, eff. Jan. 1,

1984. Amended by Acts 1991, 72nd Leg., ch. 175, Sec. 1, eff. May

24, 1991; Acts 1997, 75th Leg., ch. 1046, Sec. 1, eff. Sept. 1,

1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

444, Sec. 1, eff. September 1, 2007.

Sec. 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, Sec. 1, eff. Jan. 1,

1984. Amended by Acts 1991, 72nd Leg., ch. 175, Sec. 1, eff. May

24, 1991; Acts 1993, 73rd Leg., ch. 216, Sec. 1, eff. May, 17,

1993; Acts 1997, 75th Leg., ch. 165, Sec. 30.245, eff. Sept. 1,

1997; Acts 1999, 76th Leg., ch. 414, Sec. 2.36, eff. July 1,

2001; Acts 1999, 76th Leg., ch. 846, Sec. 1, eff. Aug. 30, 1999.

Sec. 42.0021. ADDITIONAL EXEMPTION FOR CERTAIN 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,

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,

and under any health savings account described by Section 223 of

the Internal Revenue Code of 1986, 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 an 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). Amounts qualifying as nontaxable rollover

contributions under Section 223(f)(5) of the Internal Revenue

Code of 1986 on or after January 1, 2004, 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, Sec. 1, eff. Sept. 1,

1987. Amended by Acts 1989, 71st Leg., ch. 1122, Sec. 1, eff.

Sept. 1, 1989; Acts 1995, 74th Leg., ch. 963, Sec. 1, eff. Aug.

28, 1995; Acts 1999, 76th Leg., ch. 106, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2005, 79th Leg., Ch.

130, Sec. 1, eff. May 24, 2005.

Acts 2005, 79th Leg., Ch.

130, Sec. 2, eff. May 24, 2005.

Sec. 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, Sec. 1, eff. Sept. 1,

2003.

Sec. 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, Sec. 1, eff. Jan. 1,

1984. Amended by Acts 1991, 72nd Leg., ch. 175, Sec. 1, eff. May

24, 1991.

Sec. 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, Sec. 1, eff. Jan. 1,

1984. Amended by Acts 1991, 72nd Leg., ch. 175, Sec. 1, eff. May

24, 1991.

Sec. 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, Sec. 4.07, eff.

Sept. 1, 1991. Amended by Acts 1997, 75th Leg., ch. 165, Sec.

7.56, eff. Sept. 1, 1997.