Justice of the Peace Galveston County Precinct 8-1
Justice courts in Texas, such as Justice of the Peace Galveston County Precinct 8-1, play a critical role in civil matters involving disputes up to $10,000. Winning a judgment in these courts is a milestone, but the real challenge often lies in collecting that judgment. Many judgment holders, whether individuals or businesses, find themselves stuck with a piece of paper when they expect payment.
Having worked as a debtor’s attorney for 25 years and handled over 4,000 bankruptcy cases, I’ve seen firsthand the tug-of-war between creditors seeking payment and debtors protecting their assets. This blog focuses on collections through writs of garnishments on bank accounts—a powerful tool for creditors—and offers insights for debtors who may benefit from bankruptcy protections.
Justice Courts: The Framework for Collections
Justice courts, like those in Galveston County, are governed by specific rules under the Texas Rules of Civil Procedure. They handle cases involving:
- Civil claims up to $10,000.
- Enforcement of deed restrictions.
- Eviction cases.
A judgment from a justice court grants the creditor a legal right to collect, but it’s up to the judgment holder to take the necessary steps to enforce it. Without action, the judgment may remain unpaid.
Collections: Writs of Garnishment
If the debtor is unwilling to pay voluntarily, creditors can enforce the judgment using writs of garnishment, particularly targeting bank accounts. Here’s how:
Step 1: File for a Writ of Garnishment
A writ of garnishment is a legal order requiring a third party—such as a bank—to turn over funds held in the debtor’s account to satisfy the judgment. This process begins by filing the necessary paperwork in the court where the judgment was awarded.
Step 2: Identify the Bank
To garnish funds, the creditor must know where the debtor banks. This information is often obtained through post-judgment discovery tools, such as interrogatories or depositions.
Step 3: Serve the Bank
Once the writ is issued, it must be served on the bank. The bank is legally obligated to freeze the debtor’s account until the court determines how much money to release to the creditor.
Step 4: Collect the Funds
If the court approves the garnishment, the funds are released to the creditor. However, Texas law protects certain types of accounts, such as wages deposited directly into a bank account, which may be considered exempt.
For Debtors: Know Your Rights
Debtors facing garnishment often feel trapped, but Texas exemptions offer protections:
- Homestead Exemption: Your primary residence cannot be seized.
- Personal Property Exemption: Vehicles, household items, and retirement accounts may be protected.
- Wage Protection: Wages are generally exempt from garnishment unless deposited into a bank account.
When facing aggressive collection tactics, such as writs of garnishment, bankruptcy may provide a lifeline. Filing for Chapter 7 or Chapter 13 bankruptcy not only halts garnishments through the automatic stay but also provides a structured way to address debt.
How Bankruptcy Can Help
If you’re a debtor struggling with collections, bankruptcy may allow you to:
- Eliminate unsecured debts entirely through Chapter 7.
- Create a manageable repayment plan through Chapter 13.
- Protect exempt assets, such as your home and retirement accounts.
- Halt collection actions immediately through the automatic stay.
Legal Expertise in Both Sides of Collections
As a seasoned bankruptcy attorney with deep knowledge of Texas exemptions and post-judgment collections, I understand the strategies creditors use and the defenses debtors can deploy. Whether you’re holding a judgment and struggling to collect or facing aggressive collection tactics, the right legal strategy can make all the difference.
Contact Us for Help
If you’re dealing with collections or considering bankruptcy, reach out to us today. We’ve helped thousands of clients navigate the complexities of debt and collections, and we’re here to guide you.
Call us at (713) 974-1151 or email [email protected].
Visit us online at www.busby-lee.com.
