Texas Senate Bill SB1167

Texas 2019 - 86th Regular

Caption

Relating to the exemption for certain savings plans from attachment, execution, or other seizure for a creditor's claim.

Impact

The revisions proposed by SB 1167 would significantly alter the landscape of creditor claims against retirement and other savings accounts in Texas. By ensuring that these qualified savings plans cannot be subject to seizure or attachment, the bill aims to protect individuals from losing critical financial resources during debt recovery processes. This protection is particularly relevant for individuals facing economic hardships or those potentially entering into bankruptcy proceedings, as it safeguards funds that are often designated for retirement or critical life expenses.

Summary

Senate Bill 1167 addresses the exemptions related to certain savings plans from being seized for creditor claims. The bill amends Section 42.0021 of the Property Code, broadening the definition of 'qualified savings plans' to include a variety of financial accounts such as retirement plans, health savings accounts, and education savings accounts. Under the proposed changes, an individual's interest in and rights to payments from these savings plans are exempt from attachment or seizure in the context of satisfying debts, thereby providing enhanced financial security to individuals who rely on these savings for their future needs.

Contention

There may be points of contention surrounding the bill regarding its implications for creditors’ rights. Advocates of the bill argue that protecting savings plans from creditor claims promotes financial stability for individuals and families, while opponents might raise concerns about the potential abuse of these protections by debtors. Furthermore, the bill’s interaction with existing laws, particularly those concerning child support liens, adds complexity that may provoke debate among legislators and stakeholders involved in financial and legal sectors.