5 Steps to Take When You’ve Won a Judgment but Haven’t Been Paid
Winning a judgment in court is only half the battle—getting paid is the real challenge. If you have successfully obtained a judgment against a debtor, you may wonder what your next steps should be to collect what you’re owed. This is where understanding collections and enforcement methods can make all the difference. With over 25 years of experience as a debtor’s attorney in bankruptcy, having filed more than 4,000 Chapter 7 and Chapter 13 cases in the Southern District of Texas, I’m here to share practical strategies to collect your judgment effectively.
Here are five steps you can take to enforce your judgment:
1. Evaluate the Debtor’s Financial Position
Before jumping into enforcement, you need to assess whether the debtor has assets or income you can collect from. Consider the following:
- Bank Accounts: Identify where the debtor banks. This is key for garnishments.
- Employment Status: If the debtor is employed, you may be able to garnish wages (with certain exceptions in Texas).
- Property Ownership: Check if the debtor owns real estate or valuable personal property.
Conducting this evaluation can save you time and money, as it helps you determine the most viable path for collection.
2. Consider a Writ of Garnishment
One of the most effective tools for collecting on a judgment in Texas is a writ of garnishment. Here’s how it works:
- A writ of garnishment allows you to seize funds from a debtor’s bank account. Once served, the bank freezes the account, and the funds may be turned over to satisfy the judgment.
- To obtain a writ, you must file an application in the same court where you won your judgment, supported by an affidavit that establishes the debtor’s lack of other assets.
Texas law provides strong protections for certain accounts, so consulting an attorney familiar with garnishments is crucial.
3. Leverage Justice Court Processes
Justice courts (formerly known as small claims courts) handle many collections cases in Texas. If your judgment was issued there, you’ll need to understand its processes to enforce your claim:
- Justice courts are more informal than higher courts, but they follow specific rules for enforcement actions like garnishments or abstracting a judgment to create a lien.
- These courts also handle hearings related to the debtor’s exemptions, so be prepared to navigate these proceedings.
4. Understand Texas Exemptions
Texas law provides some of the most generous debtor exemptions in the country, protecting assets like:
- Homesteads (primary residences)
- Certain personal property, including vehicles (up to a specific value)
- Retirement accounts (such as 401(k)s and IRAs)
It’s important to know these exemptions to avoid wasting time pursuing assets that are legally protected. An experienced attorney can help you identify collectible assets while respecting these exemptions.
5. Consult a Bankruptcy Attorney
If the debtor files for bankruptcy in response to your collection efforts, this changes the landscape entirely. Bankruptcy can discharge many types of debts or restructure repayment under a court-supervised plan.
- As a creditor, you may need to file a proof of claim to recover a portion of what’s owed.
- In some cases, judgments based on fraud, willful misconduct, or certain other exceptions may not be dischargeable.
Having handled thousands of bankruptcy cases, I can provide insight into whether pursuing collections or negotiating a settlement is in your best interest.
Why Choose Us?
At Busby & Associates, we understand both sides of the collections and bankruptcy equation. With extensive experience in both enforcing judgments and representing debtors, we’re uniquely positioned to help you recover what you’re owed.
Call us today at (713) 974-1151 or email us at [email protected] to schedule a no-obligation consultation. For more information, visit our website.
