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.
Notes of Decisions
Soza v. Hill (In Re Soza), 542 F.3d 1060 (5th Cir. 2008).
· cites it 6× “Tex. Prop. Code Ann. § 42.004 (a) (emphasis added).”
In Re Swift, 124 B.R. 475 (Bankr. W.D. Tex. 1991).
· cites it 3× “0021, however, the debtor’s conduct with respect to that plan, viewed in the overall context of this case, would deprive him of the benefits of that IRA by virtue of Tex.Prop.Code § 42.004, because the debtor has used property not exempt to acquire eligible personal property…”
Endeavour GP, LLC v. Endeavour Highrise, L.P. (In Re Endeavour Highrise, L.P.), 432 B.R. 583 (Bankr. S.D. Tex. 2010).
· cites it 3× “The IRA Account Holders assert in their answer that “[t]o the extent that the Trustee claims or may claim that the IRA accounts are not exempt property, Third Party Defendants assert the statute of limitations, Tex. Prop.Code § 42.004.” [Finding of Fact No.”
In Re Zavala, 366 B.R. 643 (Bankr. W.D. Tex. 2007).
“See Tex. Prop.Code § 42.004 ("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…”
In Re Coates, 242 B.R. 901 (Bankr. N.D. Tex. 2000).
· cites it 4× “Tex.PROP.Code Ann. § 42.004(a) (Vernon Supp.”
Soza v. Hill (5th Cir. 2008).
· cites it 3× “Tex. Prop. Code Ann. § 42.004 (a) (emphasis added).”
— Tex. Prop. Code § 42.004(a) — 4 cases
In Re Swift, 124 B.R. 475 (Bankr. W.D. Tex. 1991).
“0021, however, the debtor’s conduct with respect to that plan, viewed in the overall context of this case, would deprive him of the benefits of that IRA by virtue of Tex.Prop.Code § 42.004, because the debtor has used property not exempt to acquire eligible personal property…”
In Re Coates, 242 B.R. 901 (Bankr. N.D. Tex. 2000).
“Tex.PROP.Code Ann. § 42.004(a) (Vernon Supp.”
Soza v. Hill (5th Cir. 2008).
“Tex. Prop. Code Ann. § 42.004 (a) (emphasis added).”
— Tex. Prop. Code § 42.004(b) — 1 case
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