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Current as of January 01, 2024 | Updated by Findlaw Staff
(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.
Cite this article: FindLaw.com - Texas Property Code - PROP § 42.004. Transfer of Nonexempt Property - last updated January 01, 2024 | https://codes.findlaw.com/tx/property-code/prop-sect-42-004/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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