Texas Codes

Tex. Penal Code § 32.33 (2026)

Hindering Secured Creditors

✓ current as of May 2026

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Sec. 32.33. HINDERING SECURED CREDITORS. (a) For purposes of this section:

(1) "Remove" means transport, without the effective consent of the secured party, from the state in which the property was located when the security interest or lien attached.

(2) "Security interest" means an interest in personal property or fixtures that secures payment or performance of an obligation.

(b) A person who has signed a security agreement creating a security interest in property or a mortgage or deed of trust creating a lien on property commits an offense if, with intent to hinder enforcement of that interest or lien, he destroys, removes, conceals, encumbers, or otherwise harms or reduces the value of the property.

(c) For purposes of this section, a person is presumed to have intended to hinder enforcement of the security interest or lien if, when any part of the debt secured by the security interest or lien was due, he failed:

(1) to pay the part then due; and

(2) if the secured party had made demand, to deliver possession of the secured property to the secured party.

(d) An offense under Subsection (b) is a:

(1) Class C misdemeanor if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is less than $100;

(2) Class B misdemeanor if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is $100 or more but less than $750;

(3) Class A misdemeanor if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is $750 or more but less than $2,500;

(4) state jail felony if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is $2,500 or more but less than $30,000;

(5) felony of the third degree if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is $30,000 or more but less than $150,000;

(6) felony of the second degree if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is $150,000 or more but less than $300,000; or

(7) felony of the first degree if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is $300,000 or more.

(e) A person who is a debtor under a security agreement, and who does not have a right to sell or dispose of the secured property or is required to account to the secured party for the proceeds of a permitted sale or disposition, commits an offense if the person sells or otherwise disposes of the secured property, or does not account to the secured party for the proceeds of a sale or other disposition as required, with intent to appropriate (as defined in Chapter 31) the proceeds or value of the secured property. A person is presumed to have intended to appropriate proceeds if the person does not deliver the proceeds to the secured party or account to the secured party for the proceeds before the 11th day after the day that the secured party makes a lawful demand for the proceeds or account. An offense under this subsection is:

(1) a Class C misdemeanor if the proceeds obtained from the sale or other disposition are money or goods having a value of less than $100;

(2) a Class B misdemeanor if the proceeds obtained from the sale or other disposition are money or goods having a value of $100 or more but less than $750;

(3) a Class A misdemeanor if the proceeds obtained from the sale or other disposition are money or goods having a value of $750 or more but less than $2,500;

(4) a state jail felony if the proceeds obtained from the sale or other disposition are money or goods having a value of $2,500 or more but less than $30,000;

(5) a felony of the third degree if the proceeds obtained from the sale or other disposition are money or goods having a value of $30,000 or more but less than $150,000;

(6) a felony of the second degree if the proceeds obtained from the sale or other disposition are money or goods having a value of $150,000 or more but less than $300,000; or

(7) a felony of the first degree if the proceeds obtained from the sale or other disposition are money or goods having a value of $300,000 or more.

Acts 1973, 63rd Leg., p. 883, ch. 399, Sec. 1, eff. Jan. 1, 1974. Amended by Acts 1979, 66th Leg., p. 501, ch. 232, Sec. 1, eff. Sept. 1, 1979; Acts 1985, 69th Leg., ch. 914, Sec. 5, eff. Sept. 1, 1985; Acts 1993, 73rd Leg., ch. 900, Sec. 1.01, eff. Sept. 1, 1994.

Amended by:

Acts 2015, 84th Leg., R.S., Ch. 1251 (H.B. 1396), Sec. 17, eff. September 1, 2015.

Notes of Decisions

Cited in 32 cases (5 in the last 5 years), 1985–2025 · leading case: Schmutz v. State, 440 S.W.3d 29 (Tex. Crim. App. 2014).

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Schmutz v. State, 440 S.W.3d 29 (Tex. Crim. App. 2014). · cites it 5× “09’s three potential venues because the terms of a specific-venue statute should be read “in light of the terms of the penal statute to which it applies,” which in this case is the statute for hindering a secured creditor, Texas Penal Code Section 32.33. See Tex. Penal Code Ann.”

First Valley Bank of Los Fresnos v. Martin, 144 S.W.3d 466 (Tex. 2004). · cites it 6× “NOTES [1] Tex. Pen.Code § 32.33. [2] 55 S.W.3d 172, 194 .”

Rotenberry v. State, 245 S.W.3d 583 (Tex. App. 2007). · cites it 6× “See TEX. PENAL CODE ANN. §§ 32.33 (Vernon 2003), 37.”

Ellis Cnty. State Bank v. Keever, 888 S.W.2d 790 (Tex. 1994). · cites it 4× “NOTES [1] TEX.PENAL CODE § 32.33 (1989). [2] An initial grand jury indictment on November 15, 1988 was dismissed because of a typographical error.”

Jay Brummett v. Jimmy Camble, Jim Boles, Doug Sanders, Dan Boulware, John R. MacLean First State Bank of Cleburne, Texas, & Johnson Cnty., Texas, 946 F.2d 1178 (1st Cir. 1991). “The same day, Brummett received a letter from then County Attorney Dan Boulware, advising Brummett that he was subject to indictment for “removing” the collateral that secured his debt to FSB — a felony violation of Tex.Penal Code § 32.33. Brummett appeared before a Johnson…”

Campbell Et Al. v. Brummett, 504 U.S. 965 (1992). “Tex. Penal Code Ann. § 32.33 (1983). After three years of court appearances, the charge was dismissed for insufficient evidence.”

Montgomery v. State, 83 S.W.3d 909 (Tex. App. 2002). “The jury convicted appellant of two offenses of hindering a secured creditor under TEX. PENAL CODE ANN. § 32.33 (Vernon 1994).”

State v. Manning, 833 S.W.2d 322 (Tex. App. 1992). “See Tex.Penal Code Ann. § 32.33 (Vernon 1989).”

Wooten v. State, 331 S.W.3d 22 (Tex. App. 2010). · cites it 2× “Tex. Penal Code Ann. § 32.33 (b), (d)(4) (Vernon 2003).”

Law v. State, 811 S.W.2d 265 (Tex. App. 1991). · cites it 2× “33 in effect in 1984, when the property was transferred, in pertinent part provided: (f) A person commits an offense if he transfers or otherwise disposes of secured property without the effective consent of the secured party and with the intent to appropriate (as defined in…”

Montgomery v. State, 91 S.W.3d 426 (Tex. App. 2002). “The jury convicted appellant of two offenses of hindering a secured creditor under TEX. PENAL CODE ANN. § 32.33 (Vernon 1994).”

Fussell v. Price, 928 F.2d 712 (5th Cir. 1991). “On July 23, 1988, Fussell was indicted in Shelby County under Tex. Penal Code Ann. §§ 32.33 (b), (c) (Vernon 1989), which punish one who intentionally “hinder[s] enforcement of [a] security interest or lien.”

Show all 32 citing cases →

— Tex. Penal Code § 32.33(a)(1) — 1 case

Randy Schmutz v. State (Tex. App. 2013).

— Tex. Penal Code § 32.33(b) — 6 cases

Rotenberry v. State, 245 S.W.3d 583 (Tex. App. 2007). “See TEX. PENAL CODE ANN. §§ 32.33 (Vernon 2003), 37.”

Jackson v. State, 697 S.W.2d 513 (Tex. App. 1985).

Kerns v. First State Bank, 130 F.4th 455 (5th Cir. 2025).

Kerns v. First State Bank of Ben Wheeler (Bankr. E.D. Tex. 2023).

David Lee Thomison v. State of Texas (Tex. App. 2012).

— Tex. Penal Code § 32.33(c) — 1 case

Ellis Cnty. State Bank v. Keever, 888 S.W.2d 790 (Tex. 1994). “NOTES [1] TEX.PENAL CODE § 32.33 (1989). [2] An initial grand jury indictment on November 15, 1988 was dismissed because of a typographical error.”

— Tex. Penal Code § 32.33(d)(4) — 1 case

Daryl Glen Ferguson v. State (Tex. App. 2016).

— Tex. Penal Code § 32.33(d)(5) — 1 case

Kerns v. Dickson (E.D. Tex. 2025).

— Tex. Penal Code § 32.33(e) — 3 cases

First Valley Bank of Los Fresnos v. Martin, 144 S.W.3d 466 (Tex. 2004). “NOTES [1] Tex. Pen.Code § 32.33. [2] 55 S.W.3d 172, 194 .”

Schmutz v. State, 440 S.W.3d 29 (Tex. Crim. App. 2014). “09’s three potential venues because the terms of a specific-venue statute should be read “in light of the terms of the penal statute to which it applies,” which in this case is the statute for hindering a secured creditor, Texas Penal Code Section 32.33. See Tex. Penal Code Ann.”

Schmutz, Randy (Tex. Crim. App. 2014).

— Tex. Penal Code § 32.33(f) — 1 case

Law v. State, 811 S.W.2d 265 (Tex. App. 1991). “33 in effect in 1984, when the property was transferred, in pertinent part provided: (f) A person commits an offense if he transfers or otherwise disposes of secured property without the effective consent of the secured party and with the intent to appropriate (as defined in…”

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