How to Collect After Winning a Judgment: Focus on Garnishments and Creditors’ Rights
Congratulations, you’ve successfully won a judgment in your favor! Whether it’s related to a debt, settlement, or a civil matter, the judgment represents a legal victory. But here’s the truth: winning the judgment is just one step in the process. The real challenge is collecting the money you’re owed.
Many debtors who owe judgments are difficult to collect from, especially when they try to hide assets or avoid paying. This is where effective collection strategies come into play, and understanding your rights as a creditor can help you navigate this process.
The Challenges of Collecting a Judgment
Winning a judgment in court doesn’t guarantee that the debtor will pay you. They may not have the funds available, or they may try to avoid payment altogether. This is where the legal process can help creditors enforce judgments and collect the amounts owed.
One of the most common and effective methods to collect is through a writ of garnishment, which allows you to seize the debtor’s bank funds or wages.
Garnishment: A Powerful Tool for Creditors
A writ of garnishment is a court order that directs a third party, such as a bank or employer, to seize a debtor’s funds to pay the judgment. This is one of the most powerful tools available to creditors in Texas for collecting judgments.
If you know the debtor’s bank or employment information, you can file for a garnishment order, which directs the financial institution or employer to withhold funds and remit them to you. Garnishments are a highly effective collection method, but the process must be executed properly to ensure you collect the debt owed.
Navigating the Justice Court Process
In Texas, when you have a judgment, you can initiate garnishment proceedings through the Justice Court system. The Justice Court handles smaller civil cases, but the process of filing a writ of garnishment requires legal precision.
Working with an experienced attorney who understands Texas law and the procedures in the Justice Court is critical. They can help ensure that you file all the necessary paperwork, follow the correct legal procedures, and act promptly to collect your judgment.
What Happens if the Debtor Files for Bankruptcy?
If the debtor files for bankruptcy after you’ve obtained a judgment, the situation becomes more complicated. In a Chapter 7 bankruptcy, many debts may be discharged, but some debts are non-dischargeable, such as those resulting from fraud or intentional injury.
However, in Chapter 13 bankruptcy, the debtor is likely to propose a repayment plan that could allow creditors to receive partial payments over time. While bankruptcy may delay or affect your collection efforts, it doesn’t necessarily mean the end of collecting your judgment.
Why a Bankruptcy Attorney with Creditor Focus Matters
Since you are a creditor seeking to collect a judgment, understanding how to handle a debtor’s potential bankruptcy filing is crucial. As an experienced creditor’s attorney, I can help you take the necessary legal steps to recover your judgment and manage the complexities of bankruptcy laws that could impact your collections.
With over 25 years of experience representing creditors and handling over 4,000 Chapter 7 and Chapter 13 cases, I’m well-versed in Texas exemptions and how to use writs of garnishment and other collection strategies. I can guide you through the process to maximize your chances of recovery, even when the debtor tries to evade payment.
What You Should Do Now
If you’ve secured a judgment but are struggling to collect, it’s time to act. Garnishments, liens, and other collection strategies may be available to you. As a creditor-focused bankruptcy attorney, I can help you understand your rights and provide the tools needed to enforce your judgment.
To get started, call today at (713) 974-1151 for a consultation or email me at [email protected]. Let’s explore your collection options and find the best way to recover the funds you’re owed.
