Texas Writs of Garnishment to Collect Judgment Liens from Grayson County, Texas

Busby & Associates is a law firm that is dedicated to helping clients recover what they are owed. We are skilled in defending, collecting, and enforcing judgments, with a focus on garnishment of bank accounts and financial institutions. Additionally, we offer legal support for consumer bankruptcy, family law, and divorce matters, and we can assist both obligors and obligees with child support lien collections and defense, and domestication of foreign child support liens in Grayson County, Texas. If you need help collecting a judgment in Grayson County, Texas, our team is here to guide you through the process and help you get the results you need.

Texas Judgment liens in Grayson County

The judgment debtor’s nonexempt real property in Grayson County can be encumbered by a properly fixed judgment lien. To create a judgment lien, it is essential to record and index an abstract of judgment. The abstract of judgment must be filed in every county where the judgment lien is intended to be established. The lien lasts for ten years from the date of recordation and indexing, provided that the judgment does not become inactive. Only a final judgment, not an interlocutory judgment, can serve as the basis for the lien. If a judgment is appealed or a supersedeas bond has been filed, an abstract can be filed on a final judgment. If a creditor has taken the necessary steps to obtain a lien before the judgment is appealed, the effect of such steps will not be negated by the fact of appeal in the event of an affirmation. These regulations pertain solely to Texas state trial court judgments and do not apply to other states’ and foreign judgments’ enforcement. To establish a lien, you must first domestic in Texas for these judgments, then possibly abstract said judgment after completing domestication.

Texas Abstract of Judgment

When it comes to abstracting a judgment in Texas, it’s important to follow the state’s guidelines. The abstract of judgment can typically be prepared by the judge, justice of the peace, clerk of the court, judgment creditor, agent, attorney, or assignee for judgments rendered in most courts, except for small claims and justice courts where the judgment creditor is not allowed to prepare their own abstract. It’s also important to note that abstracts of federal court judgments require certification from the clerk of the court. To abstract your judgment lien in Grayson County, Texas, you can go to the County Clerk’s office located at 100 W Houston St # 17, Sherman, Texas 75090.

Contents

In Texas, an abstract of judgment must adhere to certain guidelines to be enforceable, which include specifying the names of the plaintiff and defendant, the defendant’s birthdate (if available), the defendant’s driver’s license and social security numbers (if available), the suit number, the defendant’s address or citation information, the date the judgment was issued, the amount of the judgment and outstanding balance, any child support arrearage, and the interest rate. The abstract must also list the mailing address for each plaintiff or judgment creditor and be certified by the creditor’s attorney. Failure to provide the mailing address may result in a penalty filing fee, and unsworn statements are not accepted.

Recordation of Judgment Liens Abstract

It is necessary to record the abstract of judgment in Grayson County when the debtor has real property there. The Grayson County clerk receives the abstract and records it in the county’s real property records, noting the date and time of recording. Moreover, the clerk must enter the abstract in the alphabetical index to the real property records, showing the names of both the plaintiff and defendant and the page number where the abstract is recorded.

Abstracts of Domesticated Judgment Liens.

The Uniform Enforcement of Foreign Judgments Act and the Uniform Foreign-Country Money Judgments Recognition Act establish that foreign judgments are enforceable to the same extent as judgments filed in the originating court. The foreign judgment holder must fulfill the lien requirements to domesticate the judgment in Texas.

Property To Which Lien Attaches Non-Exempt Real Property

All nonexempt real property owned by the defendant and recorded in Grayson County is subject to the judgment lien.

Keeping the Judgment and Judgment Lien Alive

1.      Non-governmental Judgments

Following the recording and indexing of an abstract, a judgment lien is in effect for a period of ten years, but it becomes dormant if a writ of execution is not issued within that time, resulting in the termination of the lien. Thus, to maintain the judgment lien, it is essential to keep the judgment active and obtain and record a new abstract of judgment. A dormant judgment can be revived through scire facias or a debt action filed within two years of dormancy.

2.      State or State Agency Judgments.

The enforceability of state or state agency judgments does not lapse, meaning they remain enforceable for the lien’s entire duration. A properly filed abstract of judgment can create a lien that lasts for 20 years from the date of filing, and the lien can be extended for another 20 years by filing a renewed abstract of judgment.

3.      Political Subdivisions.

While dormancy statutes may cause judgments of political subdivisions to become inactive, the revival statute, Civ. Prac. & Rem. Code § 31.006, allows the political subdivision to revive the judgment at any time. Therefore, the political subdivision is not barred by the statute of limitations and can revive the judgment even beyond the two-year dormancy period.

4.      Child Support Judgments.

Subsection (c) of § 34.001 of the Civ. Prac. & Rem. Code creates a carve-out for judgments of child support from the dormancy statute, covering all such judgments regardless of their date of rendering.

Property Subject to and Exempt from Execution.

1.      Property Subject to Execution.

The execution has the authority to confiscate the judgment debtor’s property unless it is exempted by the constitution, statute, or any other legal rule. The following types of property are usually not exempted: a. Cash on hand or in checking or savings accounts; b. Pleasure boats and their motors and trailers; c. Collections of items like stamps, coins, etc.; d. Investments such as stocks, bonds, or notes; e. f. Airplanes. Corporations have no protected property.

2.      Property Exempt from Execution.

Various kinds of properties are exempted from execution regardless of whether it’s for a single adult or family, which include a) The homestead, b) Personal property of different categories as defined by statute that has a combined fair market value of $100,000 for a family or $50,000 for a single adult, c) Personal service wages and unpaid commissions limited to 25% of $50,000/$100,000 respectively (not applicable for child support payments), d) Prescribed health aids, e) Worker’s compensation payments, f) Cemetery lots meant for sepulcher, g) The property that the debtor has sold, mortgaged, or conveyed in trust if the buyer, mortgagee, or trustee indicates other property that’s enough to satisfy the execution, h) The spendthrift trust’s assets for the judgment debtor’s benefit in the hands of the trustee, i) Specific insurance benefits, and j) Various savings plans including college savings plans and retirement benefits.

WRITS OF GARNISHMENT.

The post-judgment garnishment is a legal process used by a judgment creditor to investigate the relationship between a third party and the judgment debtor for any outstanding debts or property owed to the debtor. If any debts are found, the creditor (garnishor) can obtain a garnishment judgment, directing the third party (garnishee) to pay funds to the garnishor instead of the debtor.

Requirements to Issue

To employ garnishment following a judgment, certain conditions must be met. Firstly, the creditor must possess a valid and subsisting judgment against the debtor, with the judgment being deemed final and subsisting from the date of rendition. Secondly, the debtor must not have filed an approved supersedeas bond to prevent execution on the judgment. Finally, the creditor must declare that, to their knowledge, the judgment debtor does not hold enough property subject to execution in Texas to satisfy the judgment.

Procedure for Securing Issuance Jurisdiction and parties

It’s important to note that a post-judgment garnishment action is a distinct legal action from the main case it aims to enforce. As an additional lawsuit, the third-party garnishee should be named as the defendant. It should be filed in the same court that issued the judgment to be collected, but with a different cause number.

Service of the writ of garnishment/notice to judgment debtor.

Serving the writ of garnishment on the garnishee initiates a garnishment action, and the judgment defendant’s participation is not mandatory. However, the defendant must receive a copy of the writ, application, affidavits, and court orders as soon as practical after the garnishee has been served. The copy of the writ served on the defendant must contain the contents of the writ in bold 12-point typeface and in a manner that is easily understandable for a reasonably attentive person. Failure to provide the judgment debtor with property notice renders any judgment, except one that dissolves the writ, invalid.

Banks as Garnishees for Writs of Garnishment

Garnishee banks must receive garnishment writs at the address designated as the registered agent’s location in the financial institution registration statement filed under Section 201.102 or 201.103 of the Finance Code. Out-of-state financial institutions must file a registration application with the Secretary of State and comply with the state’s foreign corporation laws, which includes appointing an agent for process under Section 201.102. Texas financial institutions may appoint an agent for process by filing a statement with the Secretary of State under Section 201.103.

Officer’s Return.

The officer in charge of executing a writ of garnishment must provide a return that meets the citation standards, as per Tex. R. Civ. P. 663. Before pursuing a garnishment judgment, the judgment creditor must examine the return, particularly in cases of default judgment. Returns in garnishment proceedings must comply with the same regulations as citations in general. Courts have deemed returns to be invalid if they do not indicate the method and place of service on a corporate garnishee.

Forms for the form and Practical Procedure

If a bank account or any other debt belonging to the judgment debtor is found to be subject to garnishment and it is feasible to pursue it, the next step would be to file an Application for Garnishment with a supporting affidavit signed by the judgment creditor’s attorney. The affidavit should include essential information, such as the original suit and judgment information, the garnishee’s name, officers for service, and service address, as well as any available account names and numbers.

Busby and Associates can help you collect your Texas judgment on a contingency basis, meaning you only pay if they recover the amount owed. For judgments from other states with the debtor in Texas, they evaluate each case individually and may require a retainer. In Grayson County, they can assist you in garnishing a bank account or financial institution to recover the amount owed.