How to Collect on Your Judgment: Expert Advice for Creditors in Houston
If you’ve obtained a judgment, congratulations! However, the real challenge often lies in collecting the money owed to you. As an experienced attorney who has filed over 4,000 Chapter 7 and 13 cases in the Southern District of Texas, including Houston and Galveston divisions, I understand the complexities of bankruptcy law and the processes involved in collecting from debtors. While many debtors may attempt to evade their obligations, creditors can take strategic steps to enforce a judgment and recover funds through legal means.
This post will guide you through the logistics of how to collect on your judgment, specifically through writs of garnishment, and explain the steps involved in executing these collections in the Texas justice courts.
What Happens After You Get a Judgment?
Once you’ve won your case and received a judgment, you may feel a sense of relief, but this doesn’t automatically mean that the money will be paid to you. In many cases, debtors either cannot or will not pay voluntarily. That’s where you, as the creditor, need to take action to collect on the judgment.
What Are Writs of Garnishment?
One of the most effective tools for collecting on a judgment is the writ of garnishment. This legal action allows you to target a debtor’s bank accounts, wages, or other assets that may be in the possession of a third party, such as a bank or employer. Here’s a basic breakdown of the process:
- Writ of Garnishment on Bank Accounts: If the debtor holds funds in a bank account, you can use a writ of garnishment to freeze those accounts and collect the funds directly. This process typically involves filing a motion with the court and notifying the bank of the garnishment.
- Garnishment of Wages: If the debtor is employed, you may garnish their wages. This requires a court order to direct their employer to withhold a portion of the debtor’s paycheck and send it to you until the debt is paid off.
- Other Assets: Garnishments can also target other financial assets, such as rental income or any other payment streams. Your judgment allows you to explore these avenues to ensure the debtor fulfills their obligation.
How Does the Justice Court Process Work in Texas?
The process of garnishment in Texas is carried out through the justice courts, which handle civil matters, including small claims and judgments. Here’s an overview of the typical procedure:
- Filing a Garnishment: After obtaining a judgment, you can file for a writ of garnishment at the justice court in the county where the debtor resides or where their assets are located. The court will review your application and determine whether the garnishment should proceed.
- Serving the Debtor: Before the garnishment can proceed, the debtor must be notified. This usually involves serving them with legal notice. If the debtor does not respond, the garnishment can proceed without their consent.
- Receiving the Funds: Once the garnishment is granted and executed, the funds will be held by the garnishee (e.g., the bank or employer) and sent to the court or directly to you. This is an effective method to collect on your judgment without waiting for the debtor to voluntarily pay.
Texas Exemptions and How They Affect Collections
It’s important to remember that Texas has a set of exemptions that protect certain types of property from being seized in collections. These exemptions can sometimes limit what you can collect on, but many assets, such as bank accounts, can still be garnished. Having a deep understanding of Texas exemptions is crucial in knowing how best to proceed with collections and avoid unnecessary setbacks.
As someone who has spent over 25 years working with creditors, I am highly familiar with Texas exemptions and how to navigate the intricacies of collecting from debtors.
How Can I Help You Collect on Your Judgment?
If you’ve successfully obtained a judgment but are struggling with the collection process, I am here to assist. My firm specializes in creditor-side work, including collection of judgments through writs of garnishment and other enforcement methods. With my extensive experience in bankruptcy law, I am equipped to help you effectively collect and ensure your rights are protected.
Don’t let your judgment go unpaid—contact me today to discuss how we can take action and recover the funds you are owed.
Call me today at (713) 974-1151 for a consultation or email me at [email protected].