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

If you need assistance collecting a judgment in Hays County, Texas, Busby & Associates is here to help. Our experienced attorneys are skilled in defending, collecting, and enforcing judgments, with a focus on garnishment of bank accounts and financial institutions. We also provide 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 Hays County, Texas. Contact us today to schedule a consultation and learn how we can help you collect what you are owed.

Texas Judgment liens in Hays County

Properly fixing a judgment lien can result in a lien on all nonexempt real property of a judgment debtor in Hays County. The creation of a judgment lien requires the accurate recording and indexing of an abstract of judgment, which must be filed in each county where the lien is to be fixed. The lien remains in effect for up to ten years from the date of recordation and indexing, unless the judgment becomes dormant. It’s important to note that the underlying judgment must be final, and not interlocutory, and an abstract of judgment can be filed on a final judgment even if it’s being appealed or a supersedeas bond has been filed. If a judgment creditor has taken the necessary steps to obtain a lien before an appeal, the fact of appeal won’t destroy the effect of such steps in the event of affirmance. These rules apply exclusively to Texas state trial court judgments, and not to other states or foreign judgments, which must be domesticated in Texas before a lien can be established.

Texas Abstract of Judgment

Adhering to the state’s guidelines is crucial when abstracting a judgment in Texas. Typically, the abstract of judgment can 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, but not in small claims and justice courts where the judgment creditor is not allowed to prepare their own abstract. Note that abstracts of federal court judgments require certification from the clerk of the court. To abstract your judgment lien in Hays County, Texas, visit the County Clerk’s office located at 712 S Stagecoach Trail # 2008, San Marcos, Texas 78666.

Contents

For a Texas abstract of judgment to be considered valid, it must contain certain information, such as the names of the plaintiff and defendant, the defendant’s birthdate (if available to the clerk of justice), the last three digits of their driver’s license and social security numbers (if available), the suit number, and the defendant’s address or the nature of citation and the date and place of service of citation. Additionally, it should show the date the judgment was rendered, the amount for which it was rendered, and any balance due, including child support arrearages. The abstract must also include the mailing address of each plaintiff or judgment creditor, and it must be verified by the creditor’s attorney to be considered valid.

Recordation of Judgment Liens Abstract

When the debtor’s real property is situated in Hays County, it is necessary to record the abstract of judgment there. The Hays County clerk receives the abstract and documents it in the county’s real property records, indicating the date and time of documentation. Additionally, the clerk must include the abstract in the alphabetical index to the real property records, displaying the names of both the plaintiff and defendant and the page number where the abstract is recorded.

Abstracts of Domesticated Judgment Liens.

Under the Uniform Enforcement of Foreign Judgments Act and the Uniform Foreign-Country Money Judgments Recognition Act, foreign judgments can be enforced in the same manner as judgments filed in the originating court. To domesticate a foreign judgment in Texas, the foreign judgment holder must adhere to the lien requirements.

Property To Which Lien Attaches Non-Exempt Real Property

The judgment lien covers all nonexempt real property owned by the defendant and located in Hays County, where it is recorded.

Keeping the Judgment and Judgment Lien Alive

1.      Non-governmental Judgments

The judgment lien continues for ten years after the recording and indexing of an abstract, but it becomes dormant if no writ of execution is issued within that time, leading to the termination of the lien. Therefore, it is necessary to keep the judgment alive and obtain and record a new abstract of judgment to maintain the lien. A dormant judgment can be revived through scire facias or an action of debt within two years of dormancy.

2.      State or State Agency Judgments.

State or state agency judgments retain their enforceability and do not become dormant. An abstract of judgment that has been properly filed can establish a lien for 20 years from the date of filing, and the lien can be renewed for an additional 20 years by filing a renewed abstract of judgment.

3.      Political Subdivisions.

While dormancy statutes may render judgments of political subdivisions inactive, the political subdivision can revive the judgment at any time using the revival statute, Civ. Prac. & Rem. Code § 31.006. 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.

The exception to the dormancy statute for child support judgments is outlined in § 34.001 Subsection (c) of the Civ. Prac. & Rem. Code and applies to all such judgments, irrespective of their date of issuance or rendering.

Property Subject to and Exempt from Execution.

1.      Property Subject to Execution.

The execution can seize the judgment debtor’s property, except when it is protected by the constitution, statute, or any other legal rule. Generally, the following categories of property are not protected: 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 exempt property.

2.      Property Exempt from Execution.

Regardless of whether the property belongs to a family or a single adult, properties in the following categories are exempt from execution: a) Homestead, b) Personal property in various categories specified by statute, up to a maximum fair market value of $100,000.00 for a family or $50,000.00 for an individual who is not a member of a family, c) Current wages for personal services (excluding child support payments) and unpaid commissions for personal services, not exceeding 25% of the $50/$100,000 aggregate limitations, d) Professionally prescribed health aids, e) Worker’s compensation payments, f) Cemetery lots for sepulcher, g) Property sold, mortgaged, or conveyed in trust by the debtor, provided that the purchaser, mortgagee, or trustee identifies other property belonging to the debtor that is sufficient to satisfy the execution, h) Assets in the hands of a trustee of a spendthrift trust benefiting the debtor, i) Certain insurance benefits, j) Certain savings plans, including retirement benefits and health savings plans, k) College savings plans, and l) Certain consigned artwork.

WRITS OF GARNISHMENT.

If a judgment creditor suspects that a third party owes any outstanding debts or property to the judgment debtor, they can use the post-judgment garnishment procedure to investigate. If any debts are discovered, 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

Utilizing garnishment after a judgment is contingent upon meeting certain requirements. 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 suspend execution on the judgment. Finally, the creditor must declare that, based on their knowledge, the judgment debtor does not hold enough property in Texas subject to execution to satisfy the judgment.

Procedure for Securing Issuance Jurisdiction and parties

It’s important to recognize that a post-judgment garnishment action is a separate legal action from the main case it intends to enforce. The third-party garnishee should be named as the defendant, as it is an additional lawsuit. It should be filed in the same court that rendered the judgment to be collected, but under a different cause number.

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

To start a garnishment action, the writ of garnishment must be served on the garnishee, and the judgment defendant is not required to be involved. 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 comprehensible for a reasonably attentive person. Any judgment, except for one that dissolves the writ, is rendered void if the judgment debtor does not receive property notice.

Banks as Garnishees for Writs of Garnishment

To effectuate the delivery of garnishment writs to garnishee banks, the registered agent address provided in the financial institution’s registration statement under Section 201.102 or 201.103 of the Finance Code must be used. Out-of-state financial institutions must file an application for registration with the Secretary of State, complying with the state’s foreign corporation laws, which mandate the designation of an agent for process under Section 201.102. However, Texas financial institutions may appoint an agent for process by submitting a statement to the Secretary of State under Section 201.103.

Officer’s Return.

Tex. R. Civ. P. 663 mandates that the officer executing a writ of garnishment must submit a return that complies with the citation rules. The judgment creditor should inspect the return before seeking a garnishment judgment, particularly in cases of default judgment. Returns in garnishment proceedings are governed by the same regulations as citations in general. Courts have invalidated returns that do not provide information on the method and place of service on a corporate garnishee.

Forms for the form and Practical Procedure

If a bank account or another debt belonging to the judgment debtor is found and it is cost-effective to pursue it, file an Application for Garnishment along with a supporting affidavit signed by the judgment creditor’s attorney. The affidavit should contain necessary information, including the original suit and judgment details, the garnishee’s name, officers for service, service address, and any available account names and numbers.

Need help collecting a judgment in Texas? Busby and Associates can help you with their no upfront cost contingency-based services. For judgments from other states with the debtor in Texas, they evaluate each case individually and may require a retainer. In Hays County, they can assist you in garnishing a bank account or financial institution to recover the amount owed.