Property You Can’t Take in Texas
In Texas, a judgment debtor’s property is subject to seizure (called “levy and execution”) unless it is exempted by the Texas Constitution, statute or other rule of law. The following is a brief, nonexclusive list of exemptions. In other words, these are not all the exemptions available in Texas. But, these are the ones you will most likely encounter in collecting a Texas judgment against an individual.
1. The homestead
2. Personal property of various categories up to the aggregate fair market value of $30,000 for an individual and $60,000 for a family
3. Current wages for personal services (except for the enforcement of court-ordered child support)
4. Doctor prescribed health aids of either the judgment debtor or his dependents
5. Certain retirement benefits and funds
6. Workers’ compensation payments
7. Cemetery lots
8. Property that the judgment debtor sold, mortgaged or conveyed in trust, if the purchaser, mortgager or trustee points out other property of the judgment debtor sufficient to satisfy the execution
9. Assets in the hands of a trustee of a spendthrift trust for the benefit of the judgment debtor
10. Insurance benefits
11. Alimony, support or separate maintenance payments received for the judgment debtor’s support or the support of the judgment debtor’s dependents
12. Judgments of Texas courts (A turnover order is an effective way to reach a Texas court judgment owned by the judgment debtor but it is the subject of a future article)
Remember, this is not an exhaustive list of exemptions. It is only a list of those you will most likely encounter when pursuing a Texas judgment against an individual.
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Here’s a real problem:
I do not relish relating the following because it is too stark a reminder of how tenuous my hold is on life.
I have had a levy placed on my bank accounts by the state AG’s office for a default judgment taken in 9/97 against a defaulted student loan sponsored by the state Higher Education Authority. I have no other funds or source of income by which to live. Further, I have no credit at all because this judgment has been sitting on my credit record for the past 12 years. As a contract attorney, I do not have a steady or reliable source of income from which I can enter into a repayment agreement in order to have my accounts released.
Moreover, even if I could make a repayment agreement, I seriously doubt that I would be around long enough to pay it off. I am an insulin-dependent diabetic and I need to eat or else I die – and I almost have once before, ending up in a diabetic coma for seven weeks back in 2004. My diabetes is progressing and I am lucky if I make it to age 70. I am also under care for chronic severe depression, for which I take two different kinds of anti-depressant medications every day. And, not being able to find any work and needing to recover from my diabetic coma, I spent part of 2004 and most of 2005 in facility for homeless veterans in downtown Houston (DeGeorge Hotel).
I am 63 years old and am lucky to get any kind of attorney work at all (most employers will not hire “old people”). Borrowing money to attend law school at age 42 was probably the worst decision of my life. However, at the time, I was just divorced and my spirit, my bank account and my sense of self worth were demolished and I dearly needed something to hold onto for dear life and take my mind off of all the misery.
My family are all dead and I have no friends or other relatives on whom I can depend for any sort of assistance. I have no one. I am alone. Period.
My life, since law school, has consisted of working whenever I can find work – usually for $25 to $35 per hour – and looking for work (while trying to live off of whatever money I might have been able to save from the last time I had work). The only way I have medical care is through the VA, based on the fact that I am a Vietnam veteran with a service connected disability (diabetes, from Agent Orange exposure).
This judgment is over 10 years old and, as I understand the law in Texas – Property Code sec. 52.006 – the judgment is rendered “abandoned” after 10 years if there has been no renewal of the recorded judgment and, as far as I can tell, there has not. However, I don’t know if this applies in the case of a judgment taken on a defaulted student loan. I also have to pay federal withholding and social security out of the money that the state has frozen, as well as rent, food, gas, utility bills and normal living expenses.
I cannot try to resolve this problem until tomorrow because today is a state holiday. I need help before tomorrow so I can figure out what to tell these people.
I’m truly sorry to hear of your plight.
It sounds like you likely have a defaulted student loan through the Texas Guaranteed Student Loan program. That program has the authority to seize your bank account and garnish your wages in Texas.
As you know, wage garnishment to collect civil judgments is not available generally in Texas. But, the Texas Guaranteed Student Loan Program is a creature of federal law. While the Texas Constitution doesn’t allow wage garnishments except for child support, the federal law student loan program “trumps” that prohibition.
Also, there really is no limitation on collecting a Texas judgment. Yes, the judgment can go dormant after 10 years. But, it can also easily be renewed for another 10 years … and then renewed again. Basically, it can follow you for the remainder of your life.
So…my question is, how is a judgement collected from an inheritance?
Does the involved county do a search for judgements before the bequeaths are finalized?
I need to get a judgement in place to collect on arrearage due to me as a result of non-custodial parent support payment.
The OAG has already told me I’m on my own with regard to filing this, but I’m afraid the judgement might actually be no more than an “urban legend” with regard to my collection issue.
Also, can a judgement be ammended to reflect current amounts due or once it is filed is that it?
To answer your last question first … most judgments should be written to allow for collection of costs, fees and interest. If your back support has been reduced to a money judgment as of a particular date, that’s all you’ll get for that judgment. Additional arrears will need to be reduced to judgment as well.
The short answer for collecting against an inheritance is that you’ll need to file your judgment for collection with the probate court handling the estate. You should retain an attorney to do that for you because the process may get a little more complex than you can handle by yourself. But, the bottom line is that it’s up to you to assert your claim in the probate of the estate. The county will not do a search for you and the executor will only deal with claims that are asserted.
I am attempting to file a foreign judgment/order in Texas, the rendering state is Oklahoma. The judgment stems from a support agreement entered into between divorcing parties in which the Husband (who is a medical doctor) agreed to pay ex-Wife 50% of his total annual income for the remainder of his lifetime. I read above where it says that “current wages for personal service” are exempted from collection. Given this judgment stems from a voluntary agreement of support alimony, is it possible to argue for garnishment, in much the same was as child support is exempted?
I don’t think the argument would support garnishment. Texas specifically disallows garnishment of wages except child support. Support alimony, agreed or not, doesn’t fall under the category of child support and Texas courts interpret the exemption very literally. Child support orders will allow for garnishment of wages but nothing else will.
I had a vehicle repoed two years ago and now they want to sue me. I know they cannot touch my Texas wages, but can they go after my Texas bank account if they get a judgement against me?
If they get a judgment they will be able to garnish your bank accounts. Of course, you may still be able to claim exemptions. But, your wages, once deposited to a bank account, lose their distinctive character as wages and are seizable through a garnishment.
I’m expecting a judgement in NY. Yhe individual has property in Dallas County. Can I use a NY Order of Execution to attach a lien on property in Texas? thanking you in advance.
You’ll need to apply for sister-state enforcement of your NY judgment in Texas. Look for the appropriate forms in the files section of the forum. Instructions for joining the forum were included in the email you received after purchasing the book.
My wife bought a cheap rural property in 1993 located in Montgomery Co. TX. At the time the property was paid for by her father in Virginia and titled only in her name. Although, later, she added her husband’s name to the title. He died in 1997 leaving no will; however, besides his wife he had a son and daughter. Both of whom have recently signed an “Affidavit of Heirship” in favor of my wife.
Since his death, starting in 2000 there were two separate judgements placed against his daughter. One for a reposession of an auto for 18,000.00 and another awhile after that for an auto accident in the amount of 3,400.00 totaling 21,400.00.
My wife is currently trying to sell the property for 21,5000.00. Basically, the total of the judgement. The title person is telling her that the judgement must be settled first and foremost from the sale of the property. Only the proceeds, if any remains, will be given to her.
I’m wondering, is this true or is my wife entitled to a pre-judgement settlement amount? I think 1997 Texas law entitles ones spouse to 50% plus 33% (since there are three heirs) of the deceased property. Isn’t the judgement applicable only to the property of the person which has the judgement lodged against them?
The judgment lien attaches only to the portion of the property owned by the daughter who has the judgments against her. If the title company persists in it’s position to apply all proceeds of the sale to the judgment, you’ll need to retain an attorney to represent your wife’s interest.
Can my ex-wife have the court order wage garnishment for a Contractual Alimony agreement in which I have fallen behind due to unemployment? The Contractual Alimony was rendered in Texas.
A Texas court can only order wage garnishment in child support cases. The nature of your question raises the issue whether you are actually in Texas. If you reside in a state other than Texas, your ex-wife can seek sister-state enforcement of the Texas order in that other state. Then, the issue of wage garnishment will be control by your state’s law. But, if you’re in Texas and your divorce/alimony order is in Texas, the Texas court is restricted to child support garnishment only.
If I decide to break the contractual alimony (not paying) can my ex-wife have my wages garnished? The agreement was in Texas and I do reside in Texas.
You should consult an attorney before deciding to break a contract. But, to reiterate … wage garnishment in Texas is only available for child support.
Continuing on the Topic of Garnishment of Contractual Alimony I found the following. Could you please comment.
Texas Family Code Chapter 8 – Section 8.101(b)(2) — normally it cannot be withheld, UNLESS the alimony payments are not timely made under the terms of the contract.
This is why I previously stated that you should consult an attorney before deciding to break a contract. The general rule in Texas is that wage garnishment is only allow in child support cases. But, apparently, this section of the Family Code allows a possible exception if you decide to break an alimony contract. That exception is specific to the Family Law arena. But, in situations where non-Family Law money judgments are concerned wages can’t be garnished.
To be clear then … when we’re talking about general money judgments in Texas wages can’t be garnished. But, in the Family Law arena the general rule has always been that wages can be garnished for child support. Apparently, there is now a provision for garnishment in cases of either court ordered alimony or failure to pay contractual alimony cases. Those exceptions only apply in the field of Family Law cases.
The general rule for all non-Family money judgments is still no wage garnishment in Texas.
Again, I urge you to consult an attorney, specially a Family Law attorney, before deciding to break an alimony contract … or any contract for that matter.
If I got a civil judgment in my favor against the party who has no ‘exempt’ property, but does receive a regular paycheck, is it possible to have access to those funds, after he receives them? I suspect he will attempt to cash the checks at different banks, or perhaps not cash them at all? Would a Turnover Statute and/or Judge be able to force him to hand over the funds AFTER he receives them? And if so, how is it determined how much he could keep for his living expenses – and could I get all the rest, in order to pay the judgment? Thank you.
A turnover order won’t allow you to do an “end run” around the prohibition on garnishing wages for a civil judgment. There is no way to reach those funds unless your JD deposits them into a bank and you proceed with a garnishment.
Dear Sir, I am considering a judgment recovery business in Texas, but have been warned of the difficulty in collecting in Texas. Will your book apply to people who are not the original judgment creditor?
Thank you,
Jeff
So Bank of America wants to file judgement because I was laid off and still out of money today, can they take my money out of my bank account. Also since I do not own any land or cars out right what is the most they can do to me please advise.
If my husband is the judgment debtor and is a sub-contractor and a general contractor, will the funds he receives be considered “wages” under the current Texas law and not available to be garnished until he deposits them in a financial institution?
Also, can property that is not paid for (ie. loan outstanding) be seized to be sold or will most judgment creditors stay away from those?
Texas can be a difficult state in which to collect. But, it’s not impossible. My book is directed toward judgment creditors. It applies equally whether you are the original judgment creditor or an assignee judgment creditor. I don’t have forms in the book for obtaining an assignment (which you will need to do to avoid a charge of “unauthorized practice of law.” But, those forms are easily found elsewhere on the web. In fact, if there’s enough interest I’ll provide a copy in the private forum for those who purchase the book.
I’m not sure I understand the “file a judgment” part. I presume you mean they intend to sue you and obtain a judgment. If you have a judgment against you in Texas there are a number of things that can be done to collect it. Garnishing your bank account is one of those things. If you’d like more detail on garnishment and other collection methods, along with correct information on what a judgment creditor cannot do in Texas, I suggest getting a copy of my book, “What You Absolutely Must Know If You Owe a Judgment in Texas.”
Payments to contractors, whether general or sub, are not wages in Texas. Property that has a lien, i.e., outstanding loan, can be seized and sold but the first lien holder gets paid first and the judgment creditor gets what’s left, if any. Unless there is sufficient equity in the property being seized (to ensure the judgment creditor will get something after the first lien is paid), my practice is to not go after such property. I suspect most judgment creditor attorneys take the same approach but I can’t guarantee it.
My husband was issued a judgement for child support in arrears. The levy our bank account. Put 180 leins out for my husband bank account that does not exist. They garnish his check for 1/2 of it and we hardly make it from payday to payday. Now the attorney is threating to go to court and wants all accounts in my name which I have nothing to do with his judgement. Can they levy my small account . It is just enough to pay bills each month then maybe 25.oo to keep account open. Thank you.
A Texas bank account garnishment can reach any account to which a judgment debtor has an interest. So, if your husband is on the account and his social security number is associated with that account, a garnishment can reach it.
Ref: Texas Judgement: Thank you Mr Cox for your answer. However I believe I may have caused you to misunderstand what I meant to say. My Husband is not on my checking account at all. My husband social security # is not on my account. He has no excess to my account at all. Can the attorney still ask for my account records. Thank you. PjP
I recently won a judgment against a “we tot the note” car dealer. I gave this guy 6500.00 as a down payment for a SUV and less than a week later the transmission was starting to fail. He told me to bring it in to fix and gave me my tradein car to drive in the meantime. Instead of fixing the SUV, he sold it at auction for 6K.
We I told him I had filed suit, he told me that he was going to transfer his business to his nephew and file bankruptcy. I don’t know if he did either, but if so, can I still collect?
Also, I contacted a collection firm who will help me collect if I assign the judgment to them…sounds fishy to me. They say that they would collect and I would get 50% of the collection amount. This doesn’t sound right to me. How can I know how much they collected? They could collect all of it and tell me they only got a fraction…
Thoughts?
If he did transfer the business and assets, you may have a claim for a fraudulent transfer. I suggest you contact a local attorney for that if you do discover such a transfer. With regards to a collection firm, the split you mention is, in my experience with such firms, the industry standard. I have seen some at 40% but 50% is what I see most often. It’s really not a bad percentage if you consider they are taking the risk of not collecting and having to invest some significant sums into the process (filing fees & service fees) if they’re doing it right.
As far as knowing how much they collect to make sure you don’t get ripped off twice … you just have to make sure you’re dealing with a reputable firm. Depending on where you are in the state, I may be able to help you with a referral. Use the “Contact Me” page to send me a private message if you’d like a referral. I work with a lot of collectors throughout Texas and can vouch for the integrity of all those to whom I refer cases.
I am currently evicting a tennant from a rental house I own (he has not paid rent for 2 months due to a crack habit, and has turned my property into a crack house). He receives $950/month from Social Security. I’ve heard that I can garnish his social security income if I get a judgement against him, but I have not been able to find this written anywhere. Is this accurate (hopefully so), and how do I go about it?
Sorry. You’ve been given misinformation. Social security benefits are exempt under federal law 42 U.S.C. § 407(a).
Bummer. Thank you for the information. What other options (if any) do I have? He spends his Social Security check on drugs as fast as it is deposited into his account. Should I just chalk it up as a very expensive lesson learned?
If my husband has a child support judgement againest him and is is paying his payments according to the judgement .If my husband takes out his 401K legal Can a Lawyer come back and say it is his. Their was no levy on it at the time. Is it a case of my husband just beat the Lawyer to it. Or can the Lawyer do anything about it . The money is already spent.
As long as he is paying according to the judgment, there should be no reason for the opposing attorney to even consider other forms of enforcement.
There’s not much else you can do unless he has other assets … which it clearly sounds like he doesn’t.
Mr. Cox you sound like a Lawyer I need to see. Thanks
Based on your earlier answer to someone, it sounds like a self-employed person who receives payments from clients (not strictly ‘wages’ is NOT protected from wage garnishments?
But, it would seem to me he/she would have to lien or garnish their own income to meet the letter of the law if they were sued and a creditor got a judgement? True?
my husband is paying his child support judgement according to the judgement but the lawyer wants to seize our cars if we lose both cars . We lose our jobs and the lawyer and his client lose the payments . can they take both cars. And why would a lawyer hurt his client. He has taken all of our assets . The cars are our only way to go to work . Thank you
I’m not sure I understand your question. Except for child support, a judgment creditor can’t garnish current wages from an employer. In other words, they can’t serve the employer an order to pay the judgment creditor from those wages before paying the employee. You can only do that for child support in Texas. If you’re self-employed, you don’t have an employer from whom a garnishment could be done in any case. However, whether you’re an employee or self-employed, once you deposit your money into a bank account, a garnishment of that account can occur. And, if you’re self-employed with a judgment against you, your judgment creditor could seek to garnish payments third parties owe you. But, that is not a wage garnishment because you’re not earning wages when you’re self-employed. Hope that makes sense.
The scenario you give makes no sense to me. But, I obviously don’t have all the facts the lawyer has so I can’t speak to his motivation. I can tell you though that Texas law does provide exemptions from judgment collection. One of those exemptions involves cars. Specifically, a judgment debtor is generally allowed to exempt from seizure for judgment collection one car per licensed driver in the household. So, if you and your husband are both licensed drivers and you have 2 cars, you can claim the exemption. That’s the general rule. But, since I don’t know all the facts, I can’t speak to more than the general rule. I go into all the exemptions allowed in the book What You Absolutely Must Know if You Owe a Judgment in Texas. I’d suggest reviewing the information in that book and/or contacting a lawyer to review the case for you to make sure your rights are fully protected.
I have a pending judgement. I am a single mom of 3. I live and own a home with my boyfriend. I was out of work for some time and did not pay my debts. What can they take/lien? We are barely holding on to the house that we can not sell because we owe more than it is worth. Is he ok? We are not married and have never represented ourselves as such.
The list of protections you have as a judgment debtor is much too long to go into in a brief post. I actually get this question quite frequently. That is part of the reason I wrote “What You Absolutely Must Know If You Owe a Judgment in Texas.” For a complete explanation of your rights as a judgment debtor, I recommend you get a copy of that book.
If an individual files bankruptcy in Texas and has a judgement lien on his homestead, does the bankruptcy eliminate the judgement lien on the homestead. I understand that if the judgement debtor requests the person he owes money to that this has to be removed it has to be – true? The judgement lien occured from a man making a personal loan to another man and he signed a promissory note, but has not repaid the loan to the individual. The lender of the money filed a judgement on the homestead in JP court.
In Texas, the judgment lien does not attached to the homestead … period. It can create a cloud on the title but, as you correctly observe, the judgment creditor has to release the lien as to the homestead upon request or find himself the defendant in a trespass to try title suit to remove the cloud. But, the bottom line is that the judgment lien does not attach to the homestead, with or without bankruptcy being in the picture.
I won a judgment against an individual who resides in Missouri. That state requires an authenticated copy of the judgment to register it there. As soon as an agreement is reached as to the wording of the judgment the just should sign it. My question is, do I have to wait 30 days to get a authenticated copy and what exactly is the authentication process for the copy of the judgment?
If your judgment is from a Texas District Court, it won’t be a final judgment until 30 days after the judge signs it. Since you’re wanting a sister-state enforcement in Missouri, the procedure will be governed by Missouri law. Their law should tell you whether the judgment has to be final, i.e., not subject to appeal before they’ll do a sister-state enforcement. My guess is that it needs to be final. But, that’s only a guess because I don’t know Missouri law.
The same applies to authenticating your judgment. Missouri rules of evidence will govern what you must do to authenticate the judgment. Typically, most states recognize certain documents as self-authenticating for evidentiary purposes. Likewise, most states recognize certified copies of documents as self-authenticating. So, if Missouri operates like Texas when it comes to sister-state enforcement, you should be able to get the clerk of the court to issue a certified copy of your judgment and that certified copy should satisfy their requirements for authenticated copy of your Texas judgment.
Bank of America filed a civil judgement on me and won. Can they take money such as a tax return from my bank account once it is deposited into my account?
Yes. If you have a bank account into which you make deposits, they can garnish that account.