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

At Busby & Associates, we are dedicated to providing effective solutions for judgment matters in Sherman County, Texas. Our experienced team of attorneys is skilled in defending, collecting, and enforcing judgments, with a primary focus on garnishing bank accounts and financial institutions. As accomplished consumer bankruptcy, family law, and divorce lawyers, we also extend our services to assist both obligors and obligees involved in child support lien cases. Additionally, we possess the expertise to handle the domestication of foreign child support liens specific to Sherman County, Texas. If you’re a judgment creditor facing challenges in receiving payment, contact us today. We’ll work tirelessly to ensure the successful collection of your judgment, providing you with the support and guidance you need.

Texas Judgment liens in Sherman County

When properly established, a judgment lien acts as a lien on all nonexempt real property owned by the judgment debtor in Sherman County. The creation of a judgment lien involves accurately recording and indexing an abstract of judgment, which must be filed in each county where the judgment lien is sought. The lien remains valid for ten years from the date of recordation and indexing, unless the judgment becomes dormant. The judgment on which the lien is based must be final and not interlocutory. However, even if the judgment is being appealed or a supersedeas bond has been filed, an abstract of judgment can still be filed based on the final judgment. Furthermore, if the judgment creditor has taken the necessary steps to obtain a lien before the judgment is appealed, the fact of appeal will not diminish the effect of those steps if the judgment is ultimately affirmed. These rules specifically apply to judgments issued by Texas state trial courts and do not encompass the enforcement of judgments from other states and foreign jurisdictions. To enforce judgments from other states or foreign jurisdictions, it is necessary to first domesticate the judgment in Texas to create a lien, and subsequently, an abstract of judgment may be filed.

Texas Abstract of Judgment

The preparation of the abstract of judgment in Texas is entrusted to the judge, justice of the peace, clerk of the court, or the authorized representative of the judgment creditor, such as their agent, attorney, or assignee. However, in small claims and justice courts, the judgment creditor is not permitted to prepare their own abstract. Moreover, abstracts of federal court judgments necessitate the certificate issued by the clerk of the court. Should you need to abstract your judgment lien in Sherman County, Texas, you can visit the County Clerk’s office located at 701 N 3rd St, Stratford, Texas 79084.

Contents

When compiling a Texas abstract of judgment, it is imperative to provide specific details that adhere to legal guidelines. These details include the names of the plaintiff and defendant, the defendant’s birthdate (if known to the clerk of justice), the last three digits of the defendant’s driver’s license (if available), the last three digits of the defendant’s social security number (if obtainable), the suit number in which the judgment was rendered, the defendant’s address or, if not disclosed, the nature of citation and the date and place of citation service, the date of judgment, the amount for which the judgment was rendered and the remaining balance, any child support arrearage, the interest rate specified in the judgment, and the mailing address for each plaintiff or judgment creditor. It is crucial to include the mailing address to avoid the imposition of a penalty filing fee. Furthermore, the abstract of judgment must be verified by the creditor’s attorney, and unsworn declarations are not permitted.

Recordation of Judgment Liens Abstract

In cases where the debtor holds real property, it is necessary to record the abstract of judgment in Sherman County. The Sherman County clerk receives the abstract and diligently records it in the county’s real property records, ensuring accurate documentation of the recordation date and time. Simultaneously, the clerk is obliged to enter the abstract in the alphabetical index to the real property records, indicating the names of each plaintiff and defendant in the judgment and the corresponding 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 grant foreign judgments the same enforceability as judgments filed in the originating court, ensuring their recognition and enforceability in Texas. Complying with the lien requirements is mandatory for the foreign judgment holder when seeking to domesticate the judgment.

Property To Which Lien Attaches Non-Exempt Real Property

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

Keeping the Judgment and Judgment Lien Alive

1.      Non-governmental Judgments

To ensure the judgment lien’s continuity, it remains in effect for a period of 10 years from the recording and indexing of the abstract, unless it becomes dormant. Therefore, it is necessary to (1) actively maintain the judgment and (2) obtain and record a new abstract of judgment. If the judgment enters a dormant state, it can be revived through scire facias or by initiating an action of debt within two years of dormancy.

2.      State or State Agency Judgments.

The enforceability of state or state agency judgments remains intact and does not diminish. When an abstract of judgment is filed correctly, it creates a lien that lasts for 20 years from the filing date, and the lien’s duration can be extended for another 20 years by filing a renewed abstract of judgment.

3.      Political Subdivisions.

Judgments of political subdivisions may go dormant in accordance with dormancy statutes, yet the revival statute (Civ. Prac. & Rem. Code § 31.006) confirms that the political subdivision is not barred by the statute of limitations. Hence, political subdivisions can revive judgments at any time, not limited to the two-year dormancy period.

4.      Child Support Judgments.

The provision in § 34.001 Subsection (c) of the Civ. Prac. & Rem. Code creates an exception for child support judgments from the dormancy statute and applies to all such judgments, regardless of when they were granted or issued.

Property Subject to and Exempt from Execution.

1.      Property Subject to Execution.

Unless exempted by constitutional provisions, statutes, or other relevant rules of law, the execution retains the authority to seize the judgment debtor’s property. Typically, the following types of property are not exempted: a. Cash on hand or in checking or savings accounts; b. Pleasure boats along with their motors and trailers; c. Collections of items like stamps, coins, etc.; d. Stocks, bonds, notes, and other investments; e. f. Airplanes. Corporations do not enjoy any protection for their property.

2.      Property Exempt from Execution.

Property falling within the following categories is exempt from execution, regardless of whether it pertains to a family or a single adult: a) The homestead b) Personal property falling under diverse specified categories, with an aggregate fair market value not exceeding $100,000.00 for families or $50,000.00 for single adults without family affiliation c) Current wages for personal service (except child support) and unpaid commissions for personal services, not exceeding twenty-five percent (25%) of the $50/$100,000 aggregate limitations d) Professionally prescribed health aids e) Worker’s compensation payments f) Cemetery lots held for sepulcher purposes g) Property that the judgment debtor sold, mortgaged, or conveyed in trust, if the purchaser, mortgagee, or trustee identifies other property adequate to satisfy the execution h) Assets in the hands of the trustee of a spendthrift trust for the benefit of the judgment debtor i) Certain insurance benefits j) Designated savings plans, including retirement benefits and health savings plans k) College Savings Plans l) Certain consigned artwork.

WRITS OF GARNISHMENT.

The post-judgment garnishment procedure allows a judgment creditor to investigate the relationship between a third party and the judgment debtor, aiming to determine if there are any outstanding debts or property owed to the debtor. If any such debts exist, the creditor (garnishor) can obtain a garnishment judgment, directing the third party (garnishee) to make payments to the garnishor instead of the judgment debtor.

Requirements to Issue

After securing a judgment, garnishment can be sought, provided specific conditions are met. Firstly, the creditor must have a valid and subsisting judgment against the debtor, with the judgment being considered 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. Lastly, the creditor must affirm, to the best of their knowledge, that the judgment debtor does not possess sufficient property in Texas subject to execution that can satisfy the judgment.

Procedure for Securing Issuance Jurisdiction and parties

A post-judgment garnishment action should be treated as an individual lawsuit, separate from the main case for which it seeks to enforce the judgment. The third-party garnishee should be named as the defendant in this supplementary legal action. File the application for post-judgment garnishment in the same court that rendered the judgment, but with a different cause number.

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

The garnishee must be served with the writ of garnishment to initiate the garnishment proceedings, and the judgment defendant, although not a necessary party to the garnishment action, must receive a copy of the writ of garnishment, the application, accompanying affidavits, and court orders promptly after the garnishee has been served. Additionally, it is crucial that the copy of the writ served to the defendant includes its contents in 12-point type and is presented in a manner designed to inform a reasonably attentive individual. Failure to provide proper notice to the judgment debtor regarding the garnishment renders any judgment, except for one dissolving the writ, null and void.

Banks as Garnishees for Writs of Garnishment

To deliver garnishment writs to garnishee banks, they must be directed to the address specified as the registered agent of the financial institution in its registration statement filed with the Secretary of State, as outlined by Section 201.102 or 201.103 of the Finance Code. Out-of-state financial institutions seeking registration with the Secretary of State must adhere to the state’s laws governing foreign corporations conducting business in the state, including the designation of an agent for process under Section 201.102. Conversely, Texas financial institutions have the option to file a statement with the Secretary of State appointing an agent for process under Section 201.103.

Officer’s Return.

Tex. R. Civ. P. 663 specifies that the officer executing a writ of garnishment must file a return that adheres to the citation regulations. It is recommended for the judgment creditor to thoroughly review the return before obtaining a garnishment judgment, particularly if it is a default judgment. Returns in garnishment proceedings must conform to the same rules as other citations. Courts have held returns fatally defective if they fail to indicate the method and place of service on a corporate garnishee.

Forms for the form and Practical Procedure

If you come across a bank account or other debt owed by the judgment debtor that meets the requirements for garnishment and is considered cost-effective, proceed by filing an Application for Garnishment along with a supporting affidavit, signed by the judgment creditor’s attorney. Ensure that the affidavit includes all the necessary information for the application, such as details of the original lawsuit and judgment, any credits applied to the judgment, the accurate garnishee name, designated officers for service, service address, and any available account names and numbers.

Let Busby and Associates handle the collection of your judgment in Texas. With their contingency-based services, you can proceed without any upfront costs. Judgments from other states with a Texas-based judgment debtor are reviewed on a case-by-case basis, sometimes requiring a retainer. Moreover, in Sherman County, they possess the expertise to help you garnish a bank account or financial institution, maximizing the chances of recovering the owed amount.