Texas

The information given on this page is for educational and informational purposes only, and does not constitute any legal or tax advice or opinion. This page is meant to give a quick start to research by other professionals, but it should absolutely not be relied upon for any purposes whatsoever. Additionally, this page is kept current only as our time allows, and the information given here may not be current. We make NO GUARANTEES as to the accuracy of the information herein and you should not rely on it. Even professionals who use this information must independently verify whether it is correct and current.

Texas Asset Protection Overview

Texas debtors may chooose from either the state or federal bankruptcy exemptions.

Texas is a traditionally debtor-friendly state, having expansive and unlimited exemptions for homestead, life insurance policies and their cash value, and annuities. Additionally, Article 16, Section 28 of the Texas state constitution bans the garnishment of wages, except for child or spousal support. Literally decades of litigation regarding oil & gas partnerships gives Texas perhaps the best limited partnership laws of all states. However, the new Bankruptcy legislation caps the unlimited homestead exemption at $125,000 if the homestead property is acquired within 1215 days of filing the bankruptcy petition.

Texas Statutory Creditor Exemptions

For additional detailed information on the use of life insurance, annuities, pension plans, and employee benefit plans for wealth preservation and asset protection, see advanced life insurance

Texas Homestead

• The Texas homestead exemption is mandated by state Constitution. The homestead exemption value is unlimited. The exemption is limited to ten acres in a city or town.
  
  Section 51 of Article XVI was amended effective 1/1/2000 the new section reads:

  "The homestead, not in a town or city, shall consist of not more than two hundred acres of land, which may be in one or more parcels, with the improvements thereon; the homestead in a city, town or village, shall consist of lot or contiguous lots amounting to not more than 10 acres of land, together with any improvements on the land; provided, that the homestead in a city, town, or village shall be used for the purposes of a home, or as both an urban home and a place to exercise a calling or business, of the homestead claimant, whether a single adult person, or the head of a family; provided also, that any temporary renting of the homestead shall not change the character of the same, when no other homestead has been acquired; provided further that a release or refinance of an existing lien against a homestead as to a part of the homestead does not create an additional burden on the part of the homestead property that is unreleased or subject to the refinance, and a new lien is not invalid only for that reason."

Statute

Texas Homestead Exemption Cases

• In re Norris
  No. 04-51215 (5th Cir. 06/20/2005)

• Chase Manhattan Mortgage Corp. v. Cook,
  2004.TX.0004509 (Tex.App. Dist.11 06/17/2004)

• Wilcox v. Marriott,
  103 S.W.3d 469 (Tex.App. Dist.4 01/08/2003)

Texas Life Insurance

• Life insurance benefits, including proceeds and cash values are to be paid or rendered to the beneficiary or the insured.

Statute

• Texas employee uniform group insurance plans are exempt.

Statute

Texas Annuities

• Annuity contract proceeds are exempt.

Statute

Texas IRAs & Pension Plans

• ERISA qualified government benefits or church benefits, including Keoghs and IRA's, are exempt.

Statute

• County officers and district employee pension plans are exempt.

Statute

Texas Fraudulent Transfers

For additional detailed information relating to fraudulent transfers, including the text of the Uniform Fraudulent Transfers Act, see fraudulent transfers

Texas Fraudulent Transfer Act

• Texas Fraudulent Transfer Act

Texas Fraudulent Transfer Cases

Federal District Court

• Indiana Bell Telephone Co. v. Lovelady,
  2006 WL 485305 (W.D.Tex. 01/11/2006)

• Beijing Sansheng Development Corp. v. Advertisement Technology Corp.,
  No. SA-01-CA-0522 (W.D.Tex. 03/27/2003)

Federal Circuit Court

• Albert Strangi v. Commissioner of Internal Revenue,
  417 F.3d 468 (5th Cir. 07/15/2005)

• David A. Kimbell, Sr. v. United States of America,
  371 F.3d 257(5th Cir. 05/20/2004)

• In re Gandy,
  299 F.3d 489 (5th Cir. 07/22/2002)

• Trinity Gas Corp. v. Taylor,
  276 F.3d 699 (5th Cir. 01/04/2002)

• Haralson v. E.F. Hutton Group Inc.,
  919 F.2d 1014 (5th Cir. 12/26/1990) Civil Conspiracy

• Mack v. Newton,
  737 F.2d 1343 (5th Cir. 08/06/1984) Civil Conspiracy

State Appellate Court

• William Chu v. Chong Hui Hong
  2005 Tex.App. LEXIS (Tex.App. 10/20/2005)

• Hoard Gainer Industry Co., Ltd. v. A. John Knapp,
  No. 14-04-01032-CV (Tex.App. 09/08/2005)

• Herbert and Amy Goebel v. William Brandley,
  No. 14-04-00510-CV (Tex.App. 08/30/2005)

• Michael Schaefer, et al. v. Bellfort Chateau L.P.,
  No. 14-04-00254-CV (Tex.App. 08/18/2005)

• Nancy J. Wolfram v. Lou Ann Wolfram, et al.,
  No. 04-03-00686-CV (Tex.App. 04/06/2005)

• Jose Lopez Flores and Maria Flores v.
  Robinson Roofing & Construction Company, Inc.,
  NO. 2-03-057-CV (Tex.App. 03/24/2005)

• Yokogawa Corporation of America v. Skye International Holdings, et al.,
  No. 05-04-00134-CV (Tex.App. 03/10/2005)

• Jose Lopez Flores and Maria Flores v.
  Robinson Roofing & Construction Co. Inc.,
  No. 2-03-057-CV (Tex.App. 01/13/2005)

• Metra United Escalante, L.P., et al. v. The Lynd Company,
  No. 04-04-00540-CV (Tex.App. 12/29/2004)

• Nancy J. Wolfram v. Lou Ann Wolfram, et al.,
  No. 04-03-00686-CV (Tex.App. 12/29/2004)

• Cadle Company v. Wilson,
  2004.TX.0003590 (Tex.App. Dist.3 05/13/2004)

• Stokes v. Ferris,
  2004.TX.0003587 (Tex.App. Dist.3 05/13/2004)

• CM Asfahl Agency v. Tensor, Inc .,
  No. 01-01-00692-CV (Tex.App. Dist.1 01/29/2004)

• SITQ E.U., Inc. v. Reata Restaurants, Inc.,
  111 S.W.3d 638 (Tex.App. Dist.2 05/22/2003)

• Martinek v. Farmers & Merchants State Bank of Krum,
  No. 2-02-334-CV (Tex.App. Dist.2 05/01/2003) Civil Conspiracy

• Walker v. Geer,
  99 S.W.3d 244 (Tex.App. Dist.1 01/16/2003) Civil Conspiracy

• D & KW Family, L.P. v. Rampart Capital Corp.,
  No. 01-01-00156-CV (Tex.App. Dist.1 07/18/2002)

• Parker v. Lancon,
  2002.TX.0003488 (Tex.App. Dist.14 05/23/2002)

• Patel v. Kuciemba,
  2002.TX.0003085 (Tex.App. Dist.13 05/23/2002)

• Johnston v. Crook,
  2002.TX.0002393 (Tex.App. Dist.14 04/11/2002)

• Telephone Equipment Network, Inc. v. TA/Westchase Place, Ltd.,
  2002.TX.0001709 (Tex.App. Dist.1 03/21/2002)

• FCLT Loans, L.P. v. Estate of Bracher,
  2002.TX.0001248 (Tex.App. Dist.14 02/28/2002)

• Duran v. Henderson,
  71 S.W.3d 833 (Tex.App. Dist.6 02/22/2002)

• Lentino v. Cullen Center Bank and Trust,
  2002.TX.0001250 (Tex.App. Dist.14 02/14/2002)

• Parker v. Lancon,
  2002.TX.0003934 (Tex.App. Dist.14 02/07/2002)

• In re Steger Energy Corp.,
  2002.TX.0000121 (Tex.App. Dist.4 01/09/2002)

• Williams v. Performance Diesel, Inc.,
  2002.TX.0002366 (Tex.App. Dist.14 04/18/2002)

• Gluck v. Sky Island Partnership, Ltd.,
  2001.TX.0006183 (Tex.App. Dist.8 09/27/2001)

• Matteson v. El Paso County, Texas,
  2001.TX.0005062 (Tex.App. Dist.8 08/10/2001)

• Blackthorne v. Bellush,
  61 S.W.3d 439 (Tex.App. Dist.4 07/05/2001)

• Compania Financiara Libano, S.A. v. Simmons,
  53 S.W.3d 365 (Tex. 06/21/2001)

• First National Bank of Seminole, Texas v. Hooper,
  48 S.W.3d 802 (Tex.App. Dist.8 05/17/2001)

• 1994 Land Fund II v. Ramur, Inc.,
  2001.TX.0000831 (Tex.App. Dist.5 02/05/2001) Civil Conspiracy

• Skelley v. Hayden,
  2000.TX.0053440 (Tex.App. Dist.5 09/05/2000)

• Haught v. Agricultural Production Credit Association,
  39 S.W.3d 252 (Tex.App. Dist.1 12/29/2000)

• Harco Energy, Inc. v. The Re-Entry People, Inc.,
  23 S.W.3d 389 (Tex.App. 02/02/2000)

• Davis v. Berger,
  2000.TX.0042376 (Tex.App. Dist.5 01/20/2000)

• Cedar Bayou Baptist Church v. Gregory-Edwards Inc.,
  987 S.W.2d 156 (Tex.App. Dist.14 02/04/1999)

• Leibman v. Yana Grand,
  981 S.W.2d 426 (Tex.App. Dist.8 10/01/1998)

• Bahr v. Kohr,
  980 S.W.2d 723 (Tex.App. Dist.4 08/26/1998)

• Karryn Matlock, v. John McCormick, Individual
  1997.TX.1224 (Tex. 05/02/1997)

• Earl and Gail Newsome, I v. Charter Bank Colonial
  1996.TX.3823 (Tex. 12/31/1996) Civil Conspiracy

• Donald M. White and Kathleen White v. Melvin D. Babcock,
  1995.TX.947 (Tex.App. 08/28/1995) Civil Conspiracy

• Michael H. Vosko, v. The Chase Manhattan Bank
  1995.TX.923 (Tex.App. 08/28/1995)

• Mobile America Housing C v. Gayle Schroder; Statewide
  1995.TX.831 (Tex.App. 08/18/1995)

• Harry Englert v. Edith Englert
  881 S.W.2d 517 (Tex.App. Dist.7 07/18/1994)

• Manuel Zuniga v. Groce
  878 S.W.2d 313 (Tex.App. Dist.4 05/31/1994)

• International Paper Company v. Honorable Robert Garza
  872 S.W.2d 18 (Tex.App. Dist.13 01/28/1994)

• Airflow Houston v. John H. Theriot
  849 S.W.2d 928 (Tex.App. Dist.1 03/25/1993)

• Michael Hogan v. Credit Motors
  827 S.W.2d 392 (Tex.App. Dist.4 02/12/1992)

• Roland Edward Dyer v. Shelby Eckols
  808 S.W.2d 531 (Tex.App. Dist.14 04/04/1991)

• Grand Prairie Independent School District and
  City Grand Prairie v. Southern Parts Imports
  803 S.W.2d 762 (Tex.App. Dist.5 01/09/1991)

• NCNB Texas National Bank v. Sterling Projects
  789 S.W.2d 358 (Tex.App. Dist.5 04/24/1990)

• June Williams v. Honorable Menton Murray
  783 S.W.2d 233 (Tex.App. Dist.13 11/30/1989)

• Irene Zisblatt v. Jack Zisblatt
  693 S.W.2d 944 (Tex.App. Dist.2 07/17/1985)

• BancTexas Dallas v. Michael Cornwell
  683 S.W.2d 104 (Tex.App. Dist.5 12/10/1984)

• Fidel Leal v. Narciso Cortez
  603 S.W.2d 262 (Tex.App. Dist.13 06/30/1980)

• Dorothy Hollins Et Vir. v. Rapid Transit Lines
  440 S.W.2d 57 (Tex. 04/23/1969)

• Dorothy Hollins v. Rapid Transit Lines
  430 S.W.2d 57 (Tex.App. Dist.14 05/29/1968)

Texas Trusts

For additional detailed information relating to the use of trusts for asset protection, including foreign and domestic asset protection trusts, see trusts.

Texas Trust Act (Non Self-Settled)

• Texas Trust Act

Texas Trust Act (Spendthrift Trust)

• Texas Spendthrift Trust Act

Texas Spendthrift Trust Cases

• Izen v. Catalina
  No. 02-21182 (5th Cir. 01/25/2005)

• Cheryl Faulkner v. Sharon Tanner Evans Bost,
  No. 12-03-00228-CV (Tex.App. 04/14/2004)
  

Texas Business Entities

Texas Acts

• Texas Corporation Act
• Texas Limited Partnership Act
• Texas Limited Liability Company Act pdf

Texas Charging Order Cases

• Angelo Dispensa v. University State Bank,
  1997.TX.2375 (Tex.App. Dist.6 08/13/1997)

Texas Alter Ego & Corporate Veil Cases

• R.A. Ramming, et al. v. Natural Gas Pipeline Company of America, et al.,
  No. 03-11160 (5th Cir. 11/05/2004)

• Rimade Ltd. v. Hubbard Enterprises, Inc.,
  No. 03-11294 (5th Cir. 10/07/2004)

• Compaq Computer Corporation v. Ergonome Incorporated,
  2004.C05.0002602 (5th Cir. 10/05/2004)

• Frank L. Connolly v. Neal Smith et al.,
  No. 03-03-00575-CV (Tex.App. 07/15/2004)

• Signal Peak Enterprises of Texas, Inc. v. Bettina Investments, Inc.,
  No. 05-03-00381-CV (Tex.App. Dist.5 07/06/2004)

• Rio Grande Valley Gas Co. v. City of Edinburg,
  59 S.W.3d 199 (Tex.App. Dist.1 12/21/2000) pdf

• Coleman Cattle Company, Inc. v. Carpentier,
  2000.TX.0042773 (Tex.App. Dist.9 02/03/2000)

• Pharaon v. Fesco Inc.,
  No. 04-98-00540-CV (Tex.App. Dist.4 07/07/1999) pdf

• Menetti v. Chavers,
  974 S.W.2d 168 (Tex.App. Dist.4 04/22/1998) pdf

• Ruby Sears Tigrett v. Gerald M. Pointer
  580 S.W.2d 375 (Tex.App. 12/29/1978)

• Stephen L. Rosenthal v. Leaseway Texas
  544 S.W.2d 180 (Tex.App. 11/18/1976)

Useful Texas Links

For additional detailed information relating to financial frauds and tax scams, see http://www.quatloos.com

• Texas Secretary of State
• Texas Attorney General
• Texas Securities Board
• Texas Bar Association

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The CD contains the full text of the Texas Collections Manual as a single Adobe Acrobat PDF file that is internally hyperlinked and fully word-searchable to allow for easy, rapid navigation to topics of interest. All tables of contents, practice notes, cross-references, and indexes are linked to substantive text within the file. Also included are electronic versions of all attorney-drafted forms in Word and WordPerfect formats (as well as both forms UCC 1 and UCC 11 in fillable and printable PDF format), linked from the file for quick retrieval. Texas Collections Manual, 3d ed.; Daniel J. Goldberg, chair of manual committee; 1,280 pp. in 2 loose-leaf volumes, 11” x 11-1/2”; $285 for manual and CD, $255 for CD only, plus sales tax, postage, and handling; © 2000; includes supplementation © 2003, 2005. ISBN 1-892542-04-8. Click Here to Purchase ___________________________ From Texas Attorney General's Website http://www.oag.state.tx.us/ AG_Publications/txts/debt.shtml Debt Collection If You Owe a Debt A consumer having difficulty paying a debt can contact the creditor before the bill goes to a collector. Sometimes the creditor will refinance or otherwise modify the agreement rather than pay a debt collector. If not, the debtor has certain rights. Don't Pay Extra It is unlawful for a debt collector to attempt to collect more than the amount originally agreed upon – whether the agreement was in writing or not. However, the debt may be increased by the addition of attorney's fees, investigation fees, service fees, collection fees, or other charges if a written contract authorizes the additional charges. If You Disagree If you dispute an item in the file a debt collector has on you, you should give the debt collector written notice. The debt collector must provide you with the necessary forms for the written notice, and must help you fill out the forms if you request it. The debt collector has 30 days after receiving your written request to determine whether or not the disputed item is correct. If it is incorrect, it must be corrected. The debt collector must notify anyone who has already received a report containing the incorrect item. If, at the end of 30 days, the debt collector has not been able to determine whether the item is correct or not, he or she must make the change you requested and notify anyone who received a report containing the incorrect item. If it is later determined that the item was correct after all, you must be notified and collection efforts may be continued. Harassment is Prohibited State law prohibits the use of harassment and abusive collection tactics. It is illegal for any debt collector to: threaten violence or other criminal acts; use profane or obscene language; falsely accuse the consumer of fraud or other crimes; threaten arrest of the consumer, or repossession or other seizure of property without proper court proceedings; use the telephone to harass debtors by calling anonymously or making repeated or continuous calls; make collect telephone calls without disclosing the true name of the caller before the charges are accepted. Fraud and Deception are Illegal The use of fraudulent or deceptive practices is also prohibited, including: using a false name or identification; misrepresenting the amount of the debt or its judicial status; sending documents to a debtor that falsely appear to be from a court or other official agency; failing to identify who holds the debt; misrepresenting the nature of the services rendered by the collection agency or the collector; falsely representing that the collector has information or something of value in order to discover information about the consumer. Your Home and Wages are Protected Some collectors will threaten to foreclose on homesteads or to garnish wages. In Texas, a homestead cannot be taken to pay a debt except for debts taken for the purchase of the home, for home improvements, for home equity loans or to pay certain taxes. Wages may be garnished to pay court-ordered child support, back taxes, and defaulted student loans. Violators Can be Penalized Violators of the Texas Debt Collection Act are subject to criminal and civil penalties. Consumers who think they have been harassed or deceived may seek injunctions and damages against debt collectors. These actions are also violations of the Texas Deceptive Trade Practices/ Consumer Protection Act which gives the Attorney General the authority to take action in the public interest. Federal Law Regulates Collection Agencies Texas statutes cover actions by anyone trying to collect a consumer debt. The federal law—the Fair Debt Collection Practices Act—applies only to collectors working for professional debt collection agencies and attorneys hired to collect a debt. It is similar to Texas law, but also prohibits: calls at work if the collector has reason to know the employer does not permit such calls; calls before 8 a.m. or after 9 p.m. unless the collector knows such times are more convenient for the debtor; " unfair or unconscionable means to collect or attempt to collect a debt;" any conduct to harass, oppress, or abuse. If you are being subjected to harassing, abusive, or fraudulent debt collection tactics by professional debt collectors, and you want to stop further contact with you, notify the collector in writing. Keep a copy of your letter and send the original to the debt collector by certified mail.

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