Houston Bankruptcy and Judgment Collection: How to Protect Your Assets
Living in Houston, Texas, offers many benefits—from the southern hospitality and delicious food to the welcoming locals. But there’s one thing you may not know about Texas: it’s also incredibly protective of your assets when it comes to bankruptcy. While bankruptcy offers an opportunity for a fresh start for debtors, it’s essential for creditors to understand how to collect on judgments, especially when dealing with bankruptcy proceedings.
Houston Bankruptcy: How Creditors Can Collect on Judgments
As a creditor, obtaining a judgment is just one step in the process of recovering what you’re owed. The real challenge comes in how to actually collect the money. In Texas, creditors can use various legal tools to enforce a judgment, with one of the most effective being a writ of garnishment.
Collecting Through Writs of Garnishment
Once you have secured a judgment, your next step is to take action to collect the debt. A writ of garnishment is one of the most powerful tools available for creditors. This legal process allows creditors to seize funds directly from a debtor’s bank accounts. The process begins with filing the writ of garnishment with the court, and once the court approves it, the garnishment is served to the bank. The bank must then freeze the debtor’s accounts and transfer the funds to the court to be paid to the creditor.
In Texas, understanding the logistics of how the Justice Court operates is key to executing an effective writ of garnishment. You will need to ensure that all procedural requirements are met and that the debtor’s assets are properly identified for garnishment.
Why Bankruptcy Matters for Creditors
While creditors typically seek collections after obtaining a judgment, bankruptcy filings by debtors can complicate matters. A debtor may file for bankruptcy under Chapter 7 or Chapter 13, potentially discharging or restructuring their debts. In some cases, a debtor’s bankruptcy filing can prevent creditors from collecting on judgments, as certain debts may be discharged.
However, even in bankruptcy, creditors have certain rights, and a skilled bankruptcy attorney can help navigate this complex landscape. In cases where the debtor is involved in bankruptcy proceedings, understanding the exemptions and legal protections in place for creditors in Texas can help ensure that you continue to pursue collections effectively.
When You Need an Experienced Bankruptcy Attorney
If you’re a creditor seeking to collect on a judgment or dealing with a debtor who has filed for bankruptcy, having an experienced bankruptcy attorney is essential. With over 25 years of experience and more than 4,000 Chapter 7 and Chapter 13 bankruptcy cases filed in the Southern District of Texas, I specialize in creditor rights and collections. I can help guide you through the process of garnishing bank accounts, enforcing judgments, and ensuring you get the payment you deserve.
Take Action Today
If you’re a creditor looking to collect on a judgment or facing challenges from a debtor’s bankruptcy, don’t wait. With the right legal advice, you can navigate the collection process and protect your interests. Call us today at (713) 974-1151 to schedule a consultation or email us at [email protected].
