How to Collect on a Judgment: A Guide for Creditors in Texas
Navigating the process of collecting on a judgment can be a frustrating experience for creditors. While winning a judgment is a critical step, the real challenge comes afterward: how do you actually collect the money owed to you? This process can involve multiple legal steps and, in some cases, you may find yourself having to take additional actions to ensure that your judgment is paid. Here’s a guide to help you understand how to collect on a judgment, especially through the powerful tool of writs of garnishment.
Step 1: You Got Your Judgment—Now What?
After obtaining a judgment in Texas, you may feel relief, but the next step is to enforce that judgment. The judgment simply states that the debtor owes you a certain amount, but without action, that judgment won’t help you recover any of your losses. This is where the collection process begins.
One of the most effective methods of collecting on a judgment is through a writ of garnishment. This legal order allows creditors to seize money directly from the debtor’s bank accounts or garnish wages to satisfy the judgment. While this is a powerful tool, it’s important to understand how garnishments work within the Texas legal system.
Step 2: Writs of Garnishment—The Most Effective Tool
A writ of garnishment is an essential tool in a creditor’s toolbox for enforcing a judgment. With this writ, you can go directly to the debtor’s bank and have their accounts frozen, ensuring that the funds needed to satisfy the judgment are available for collection. The process also includes garnishing the debtor’s wages if the funds in the bank aren’t sufficient.
However, it’s crucial to be aware of Texas exemptions, which can protect certain assets from being garnished, such as your home and certain retirement accounts. As a creditor’s attorney with over 25 years of experience, I have handled thousands of cases involving garnishments and can help ensure that the collection process is carried out efficiently and in compliance with Texas law.
Step 3: Legal Steps to Enforce Your Judgment
To garnish a debtor’s bank account, you must follow the proper legal steps. This includes filing a motion with the court to request the writ of garnishment, and then notifying the debtor. In Texas, there are procedural rules that must be followed to ensure that the garnishment is effective and legal. It’s important to have a skilled attorney by your side who understands these rules and can help you navigate the complexities of collection enforcement.
Step 4: Bankruptcy Considerations
While garnishment is a powerful tool, it’s important to note that if the debtor files for bankruptcy, your ability to collect on the judgment may be significantly impacted. Bankruptcy filings can put an automatic stay on most collections efforts, including garnishments.
In such cases, it may be worth evaluating the debtor’s financial situation and determining if bankruptcy relief is in their future. However, as a creditor’s attorney, my focus is on maximizing your chances of recovering your debt before any bankruptcy filings are made.
Step 5: How the Justice Court System Works
The Justice Court system in Texas plays a key role in the collection process. Understanding the logistics of how these courts handle garnishments and judgment enforcement can give you a strategic advantage. With my extensive experience handling collection cases in Texas, I know how to leverage the Justice Court system to ensure that your judgment is paid as quickly and effectively as possible.
Get Help with Collecting Your Judgment
As a creditor, it’s essential to have a knowledgeable attorney on your side to guide you through the collection process. I have over 25 years of experience helping creditors collect on judgments and file writs of garnishment. With over 4,000 Chapter 7 and 13 bankruptcy cases handled in the Southern District of Texas, I understand both the debtor’s and creditor’s perspectives and how to ensure you get the best result.
If you have a judgment that needs to be enforced, call me today at (713) 974-1151 or email me at [email protected] to schedule a no-obligation consultation.
