You’ve Won Your Judgment in Justice Court—Now What?
Justice of the Peace Fayette County Precinct 4, presided over by Honorable Judge Paul Zapalac, is where many creditors have secured their judgments. Located at 312 Paulus St., Schulenburg, TX 78956, this court, like others across Texas, helps resolve disputes involving amounts up to $10,000. But winning a judgment is only the first step—how do you actually collect?
As a former debtor’s attorney with over 25 years of experience filing more than 4,000 bankruptcy cases in the Southern District of Texas, I understand the mechanics of collection—and the defenses available to debtors. Let’s explore the tools available for creditors and the protections for debtors while introducing bankruptcy as an option for those overwhelmed by judgments.
From Judgment to Collection: The Tools of Enforcement
Winning a judgment gives you legal acknowledgment that money is owed to you. But enforcement is another matter entirely. Creditors often resort to the following methods:
1. Writs of Garnishment
This is one of the most effective tools to collect. A writ of garnishment allows a creditor to seize funds directly from the debtor’s bank account. However, wages are generally exempt from garnishment in Texas.
- Challenge for the Creditor: Identifying the debtor’s bank account and ensuring there are funds available.
- Relief for the Debtor: Bankruptcy stops garnishment cold. Filing for Chapter 7 or 13 triggers the automatic stay, halting all collection efforts.
2. Writs of Execution
This method enables a creditor to seize non-exempt personal property, which can then be sold at auction to satisfy the judgment.
- Debtor’s Protections: Texas exemptions protect homesteads, certain personal property, and tools of the trade. Creditors may find it difficult to locate non-exempt assets to seize.
3. Turnover Orders
A creditor can request the court to order the debtor to turn over non-exempt property, such as stock certificates or other valuable items.
- Strategic Bankruptcy Filing: Filing bankruptcy during these proceedings can protect assets and give the debtor a chance to reorganize or eliminate debt.
Justice Court Basics: A Primer
Justice courts in Texas handle small claims cases with amounts in controversy under $10,000. These courts are governed by the Texas Rules of Civil Procedure (Rule 523) and Texas Rules of Evidence (Rule 101).
Key Processes in Fayette County Justice Court:
- Filing Your Case: Whether filing for money damages, possession of property, or lien enforcement, ensure you meet the jurisdictional limits.
- Service of Citation: Defendants must be properly served with notice of the lawsuit.
- Trial and Judgment: If the defendant fails to respond, you may secure a default judgment.
When Debtors Face Judgments
Judgments are stressful for debtors. After 10 days without payment, creditors can escalate collection efforts. Here’s where bankruptcy provides relief:
- Automatic Stay: Bankruptcy immediately halts collection efforts, including garnishments and execution sales.
- Discharge of Debt: Chapter 7 can eliminate many debts, while Chapter 13 offers a structured repayment plan.
Why Bankruptcy Can Be the Best Solution
For debtors with multiple judgments or overwhelming debt, bankruptcy often makes sense. Instead of battling each creditor individually, bankruptcy provides a comprehensive resolution:
- Protects Exempt Assets: Texas exemptions safeguard your home, car, and retirement savings.
- Stops Harassment: No more calls, letters, or legal actions from creditors.
- Affordable Resolution: Filing bankruptcy can cost less than settling a single lawsuit.
Take Action Today
If you’ve been sued or have a judgment against you, don’t wait until collection efforts escalate. Whether you’re a creditor seeking advice on enforcing a judgment or a debtor exploring bankruptcy options, professional guidance is crucial.
Contact our office today to discuss your options and protect your financial future.
