Texas House Bill HB4190

Texas 2019 - 86th Regular

Caption

Relating to remedies for the recovery of debts by certain creditors.

Impact

The bill has a significant impact on state laws related to debt recovery and the rights of creditors and debtors. By modifying the existing exemptions for personal property based on the number and age of unpaid judgments, it effectively alters the balance of power between creditors pursuing debts and individuals facing financial challenges. This could lead to increased financial strain on individuals with multiple debts, particularly low-income citizens who may find it harder to retain essential property.

Summary

House Bill 4190 seeks to amend certain provisions of the Texas Property Code regarding the remedies available to creditors for the recovery of debts. The bill introduces new measures that affect the exemption of personal property from garnishment, attachment, and execution. Under the proposed changes, personal property is more vulnerable to seizure if the individual has multiple unpaid judgments over several years. Specifically, the bill increases the conditions under which exemptions apply, potentially leading to tougher conditions for debtors who have accumulated multiple debts.

Contention

Notably, there are points of contention surrounding HB 4190. Advocates of the bill argue that it strengthens the ability of creditors to recover debts, thereby ensuring that those who lend money can seek and secure repayment of what is owed. However, critics contend that the bill unfairly targets vulnerable individuals, exacerbating financial hardship for those already in precarious situations. This has raised concerns among consumer advocacy groups and lawmakers who prioritize protecting the rights of debtors against aggressive creditor practices.