How to Collect on a Judgment: Bankruptcy Services for Creditors
As a creditor, winning a judgment is an important step in the collection process, but it doesn’t guarantee you’ll receive the money owed to you. Many creditors find that after obtaining a judgment, they face the complex challenge of collecting the debt. That’s where I come in.
With over 25 years of experience as a debtor’s attorney, having filed over 4,000 Chapter 7 and Chapter 13 bankruptcy cases in the Southern District of Texas, including the Houston and Galveston divisions, I understand the intricacies of both bankruptcy law and debt collection. If you’re a creditor and have obtained a judgment, it’s time to explore your options for collecting that debt, including using powerful tools like writs of garnishment.
Step 1: Obtain Your Judgment – Now What?
After successfully obtaining a judgment against a debtor, many creditors assume they will simply be able to collect the money owed. Unfortunately, that’s not always the case. You may encounter obstacles when trying to collect on the debt, as many debtors have hidden assets or are not forthcoming about their finances.
This is where a writ of garnishment comes into play. A writ of garnishment is a legal tool that allows creditors to collect on a judgment by seizing funds directly from a debtor’s bank account or garnishing their wages. It is a powerful method for enforcing a judgment.
Step 2: The Power of Writs of Garnishment
A writ of garnishment is a legal order that allows creditors to collect directly from a debtor’s bank account or wages. Once you have your judgment, you can request the court to issue a garnishment order. Here’s how it works:
- Filing the Garnishment: After you have a judgment, you must file a motion with the court to request the garnishment of the debtor’s bank account or wages. This involves submitting relevant documentation and proving that the debtor owes the debt.
- Serving the Garnishment: Once the writ is issued, it is served to the debtor’s bank or employer. The bank or employer must freeze the debtor’s account or wages up to the amount of the judgment, preventing them from accessing the funds until the legal process is completed.
- Collecting the Funds: After the garnishment is served, the funds in the debtor’s account or their wages are redirected to you, the creditor, until the full judgment amount is satisfied.
Step 3: Navigating Justice Court and Garnishment
Understanding how the Justice Court system works is crucial to successfully collecting on a judgment through garnishment. In Texas, the Justice Court system provides a straightforward path to file for a writ of garnishment, but the process must be followed precisely.
- Filing the Motion: After obtaining a judgment, creditors must file the proper motion with the court requesting a writ of garnishment. Ensure that you follow the correct procedures and include all required documentation.
- Enforcement of the Judgment: The court will review your motion and, if everything is in order, issue the writ of garnishment. The writ is then served to the debtor’s bank or employer, putting a legal hold on the debtor’s funds.
- Responding to Objections: In some cases, the debtor may challenge the garnishment by claiming exemptions under Texas law. Texas exemptions protect certain property from being seized, but a skilled attorney can help you navigate these challenges and ensure that the garnishment remains effective.
Step 4: Bankruptcy Considerations for Creditors
In some cases, debtors may file for bankruptcy, which can complicate the collection process. However, as a creditor, you still have options.
- Secured vs. Unsecured Debts: Depending on whether the judgment is based on secured or unsecured debt, your ability to collect may differ. Bankruptcy law prioritizes certain types of debt, but secured creditors often have more leverage to collect.
- Automatic Stay: When a debtor files for bankruptcy, an automatic stay goes into effect, which temporarily halts all collection efforts. However, in some cases, creditors can request permission from the bankruptcy court to proceed with garnishment or other collection actions.
- Bankruptcy Proceedings: As a creditor, you may need to file a claim in bankruptcy court to recover part or all of the judgment owed to you. Understanding bankruptcy law is crucial for maximizing your recovery.
Step 5: Why You Need an Experienced Attorney
Navigating the collection process, especially in the context of writs of garnishment and bankruptcy, can be complex. With over 25 years of experience in both debtor and creditor law, I understand how to help creditors like you enforce judgments and collect the funds you’re owed.
If you are a creditor struggling to collect on a judgment or dealing with bankruptcy-related issues, I can assist in using legal tools like garnishments to collect. My experience in bankruptcy law and creditor rights will ensure that you’re taking the right steps to collect your debt.
Contact Me Today
If you’re a creditor seeking to collect on a judgment or dealing with complex bankruptcy-related issues, don’t hesitate to reach out. With decades of experience, I can guide you through the process and help you recover the money you’re owed.
Call today at (713) 974-1151 for a no-obligation consultation or email me at [email protected].
