The Hindering Secured Creditors crime in the state of Texas gives police the right to arrest you if they believe you are a debtor who destroys secured property or sells the property with the intent to evade paying the interest holder.

Hindering Secured Creditors is classified in the Texas Penal Code under Title 7 “Offenses Against Property,” Chapter 32 “Fraud.”

Learn more detailed information about the Hindering Secured Creditors offense below.

What is the current Texas law about Hindering Secured Creditors?

The current Texas law defines the offense of Hindering Secured Creditors in Penal Code Section §32.33 as follows:^[1]

(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.

Subsection (e) describes the offense as it applies to certain other debtors:

(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.

How can I be charged with Hindering Secured Creditors?

You can be charged with Hindering Secured Creditors if the state’s attorneys believe that each of the elements of 32.33 as described in the section above have been met.

What is the punishment for Hindering Secured Creditors?

The punishment for a conviction for Hindering Secured Creditors ranges from a Class C misdemeanor to a first degree felony, depending on the value of the property involved.^[2]

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Legal References:

^1. Texas Penal Code §32.33^2. Texas Penal Code §32.33(d)

(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.