Enforcement of a judgment in Texas

[Texas Tom]

What is the name of your state? Texas



How are judgments enforced in Texas? I am in the process of being sued by Citibank, I got in to some financial trouble and could no longer afford to make the minimum payments. Things have not gotten much better. If they get a judgment, all I have is two vehicles and a house. If they seize my bank acct, How will I be able to get money for food etc.

My stomach has been in knots worrying about this ever since I received the summons. I'm just worried i will lose everything.

It wont go away. Contact them and try to make a payment plan b4 it goes to collections. Try CCCS NOT any private ccs but the real thing .

[Debt Guy]

Texas is a very generous state for debtors.

Judgment creditors cannot garnish your wages.

Judgment creditors cannot attach your homestead.

They can screw up your credit but that is about all.

[Ladynred]

They can go after your bank accounts and any non-exempt assets. TX exemptions are VERY generous, so its highly unlikely you'll lose anything at all. I believe the exemption for personal property is $30,000. You would use garage sale values on your stuff, so you're probably safe.

Question - How old is this debt ?? When did you last pay the ORIGINAL creditor a regular payment ???

Have you filed an Answer to the Complaint yet ? If not, you MUST do so within the specified time limit or you WILL lose automatically. You CAN still negotiate, even on the day of court the lawyer would be looking to see if you'll settle.

[Texas Tom]

Its been two yrs. i think. since we last had any dealings with the card co.
Yes I have answered. I had to find an attorney that would take $50.00 a week payments to handle it. We will see what happens. Thanks for the responses.

[JETX]

Originally Posted by Debt Guy

Judgment creditors cannot attach your homestead.

Not correct. Though a judgment creditor in Texas cannot force the sale of homestead, he/she can place a lien on the debtors real property.

They can screw up your credit but that is about all.

Not correct. There are a number of methods that the aggressive knowledgeable Judgment Creditor can pursue in Texas.

[Texas Tom]

Well, just received the Writ of execution letter for the local Constables office. I'm in Texas. Now what? Any one know the proceeder that is about to happen? I know there is exempt property rules and all, but what should I expect? I am supposed to call the constables office next week and talk to them about it. Anything I need to know going in to this?

Thanks

[JETX]

Originally Posted by Texas Tom

Well, just received the Writ of execution letter for the local Constables office. I'm in Texas. Now what?

You do what the letter says and contact the constables office.

Any one know the proceeder that is about to happen?

Yep. The constable will determine what, if any, non-exempt assets you might have and seize them for auction sale with the proceeds going to the judgment creditor.

I know there is exempt property rules and all, but what should I expect?

See above.

I am supposed to call the constables office next week and talk to them about it. Anything I need to know going in to this?

In general, a debtor may claim exemption of his homestead and certain personal property from attachment and execution of a judgment.

A debtor's homestead and one or more lots used for a place of burial of the dead are exempt from seizure for the claims of creditors. (Prop. C. 41.001.) If used for the purposes of an urban home or as a place to exercise a calling or business in the same urban area, the homestead of a family or a single, adult person, not otherwise entitled to a homestead, consists of not more than one acre of land which may be in one or more lots, together with any improvements thereon. (Prop. C. 41.002(a).) If used for the purposes of a rural home, the homestead consists of:


(1) for a family, not more than 200 acres, which may be in one or more parcels, with the improvements thereon; or

(2) for a single, adult person, not otherwise entitled to a homestead, not more than 100 acres, which may be in one or more parcels, with the improvements thereon. (Prop. C. 41.002(b).)

Personal property of a debtor which may be exempt from garnishment, attachment, execution or other seizure may include property having an aggregate fair market value of not more than $60,000, exclusive of liens, security interests, or other encumbrances if it is provided for a family, or an aggregate fair market value of not more than $30,000, exclusive of liens, security interests, or other encumbrances if it is owned by a single adult. (Prop. C. 42.001(a).) These property may include home furnishings, including family heirlooms; provisions for consumption; farming or ranching vehicles and implements; tools, equipment, books, and apparatus, including boats and motor vehicles used in a trade or profession; wearing apparel; jewelry not to exceed 25 percent of the aggregate limitations prescribed by Section 42.001(a); two firearms; athletic and sporting equipment, including bicycles; a two-wheeled, three-wheeled, or four-wheeled motor vehicle for each member of a family or single adult who holds a driver's license or who does not hold a driver's license but who relies on another person to operate the vehicle for the benefit of the nonlicensed person; certain animals and forage on hand for their consumption; household pets; and the present value of any life insurance policy to the extent that a member of the family of the insured or a dependent of a single insured adult claiming the exemption is a beneficiary of the policy. (Prop. C. 42.002.)

Other personal property, which may be exempt from seizure, may include current wages for personal services, professionally prescribed health aids of a debtor or a dependent, alimony, support, or separate maintenance received or to be received by the debtor or for the support of his dependent, qualified retirement plan, annuity or account. (Prop. C. 42.0021.)

[Debt Guy]

Jetx

You are correct in terms of the result regarding the impact of a judgment on a Texas homestead. I knew better and was thinking of something else when I replied. As usual, you catch me when I misspeak.

The explanation I have received from several Texas title companies is: "The judgment does not technically attach to the homestead. However, since Texas does not require a "homestead filing" the result is that homestead in Texas is a "state of mind". No title company can read someone's mind. As a result they just flat buck up and will not write a title policy on a residential property if there is a judgment outstanding to the owner. The relatively small fee is not worth the risk the title company takes. Obviously, no sane buyer will buy a property without a title policy and certainly no lender would finance such a purchase. The effect is that the title is clouded and the property cannot be sold until the judgment is released."

So, the practical result is the same as if the judgment attached to the property. I agree with you that the judgment creditor cannot foreclose. The interest meter just ticks along until the owner decides to sell the property when the judgment creditor will get 100% of what is due. As I recall, the judgment is good for five years in Texas and Texas allows the judgment to be renewed once (maybe more than once -- I've never had a reason to try to figure that out).

As you know, Texas is hyper debtor friendly. Exemptions are generous and wage garnishment is prohibited. Other than the cloud on real property and going after bank accounts and any personal property not exempt, what would an aggressive judgment creditor do?

[kimbc]

Sorry. I've moved my response to an entirely new post:

[url]http://forum.freeadvice.com/showthread.php?p=1845721#post1845721[/url]

Thanks, debtcollector, for the suggestion.

[debtcollector`]

Start with your own thread Kimbc.