After a default judgment in Texas, the creditor who sued you now holds a binding court order and can start collecting almost immediately. They can place liens on real estate you own, ask a sheriff to seize non-exempt property, freeze bank accounts through garnishment, and force you to answer sworn questions about everything you own. The balance also grows: post-judgment interest currently accrues at 6.75% per year.1State of Texas. Texas Finance Code Section 304.003 – Judgment Interest Rate2Texas Office of Consumer Credit Commissioner. Interest Rates The judgment is enforceable for ten years and can be renewed, so waiting it out is rarely realistic.3State of Texas. Texas Civil Practice and Remedies Code Section 34.001 – No Execution on Dormant Judgment You do, however, have a short window to ask the court to set the judgment aside, and Texas law shields more of your property than most states.
What the Creditor Can Do to Collect
A judgment is only paper until the creditor uses it. In Texas, four tools do most of the collection work.
Judgment Liens on Real Estate
The creditor can file an abstract of judgment with the county clerk in any county where you own real property. That filing creates a judgment lien that attaches to your non-exempt real estate and clouds your title.4Texas State Law Library. Judgment Lien – Small Claims Cases You generally cannot sell or refinance until the debt is resolved, and any sale proceeds can be claimed by the creditor up to the judgment amount.
Writ of Execution
A writ of execution directs a sheriff or constable to seize non-exempt property and sell it at public auction, with the proceeds applied to the judgment.5Orange County, Texas. Texas Rules of Civil Procedure 621-656 – Writ of Execution Typical targets include business cash, boats, valuable collections, or a second vehicle that falls outside the exemption.
Writ of Garnishment
Garnishment reaches money a third party holds for you, most often a bank. Once served, the bank must freeze your account and turn over non-exempt funds up to the judgment amount. Texas does not allow garnishment of unpaid wages for ordinary consumer debts, but once wages are deposited they can become harder to defend if they are mixed with other money in the same account.
Turnover Order
This one surprises many people. On the creditor’s motion, a court can order you to hand over non-exempt property in your possession or control and can appoint a receiver with authority to take, sell, and distribute those assets.6State of Texas. Texas Civil Practice and Remedies Code Section 31.002 – Collection of Judgment Through Court Proceeding Refusing a turnover order can land you in contempt. The creditor can also recover reasonable costs and attorney’s fees through this process, which gets added to your balance.
They Can Legally Demand Your Financial Information
Before targeting specific assets, creditors usually send post-judgment discovery: written interrogatories you must answer under oath, and requests for production of documents like bank statements, titles, deeds, and pay stubs. You generally have 30 days to respond.
Ignoring these requests escalates quickly. The creditor can file a motion to compel, and if you still refuse after a court order, you face contempt, which can mean fines or jail time until you comply. Discovery obstruction is one of the fastest ways to turn a manageable judgment into a serious legal problem.
Property Texas Protects From Collection
Texas exemptions are among the broadest in the country, and they apply even when a valid judgment exists.
Your primary residence is protected from forced sale for most debts, with no cap on dollar value. The homestead exemption covers up to 10 acres in an urban setting, and up to 200 acres for a family or 100 acres for a single adult in a rural setting.7State of Texas. Texas Property Code Section 41.002 – Definition of Homestead It does not stop a mortgage lender, taxing authority, or a contractor you hired in writing.
Personal property is protected up to $100,000 for a family or $50,000 for a single adult, measured by aggregate fair market value.8State of Texas. Texas Property Code Section 42.001 – Personal Property Exemption Qualifying items include home furnishings, clothing, tools of your trade, two firearms, athletic equipment, household pets, and jewelry up to 25% of the applicable cap. Each licensed adult in the household gets one motor vehicle, and the exemption extends to a vehicle driven for a family member who cannot drive themselves.9State of Texas. Texas Property Code PROP 42.002 – Personal Property
Current wages that have not yet been paid to you are fully exempt from garnishment for consumer debts. The main exceptions are child support, spousal support, and certain federal debts such as taxes and federally backed student loans. Retirement accounts, Social Security, workers’ compensation, and veterans’ benefits are also protected. Once that money reaches your bank account, creditors may argue it is no longer “current wages,” so keeping exempt funds in a separate account makes them easier to defend.
The Balance Keeps Growing
The judgment amount does not sit still. Texas post-judgment interest is tied to the federal prime rate with a 5% floor and a 15% ceiling, and the current rate is 6.75%.1State of Texas. Texas Finance Code Section 304.003 – Judgment Interest Rate2Texas Office of Consumer Credit Commissioner. Interest Rates On a $20,000 judgment, that adds roughly $1,350 every year you leave it unpaid.
How Long the Judgment Stays Enforceable
A Texas judgment becomes dormant if no writ of execution is issued within ten years of entry. Once dormant, the creditor cannot enforce it without first reviving it through a court proceeding.3State of Texas. Texas Civil Practice and Remedies Code Section 34.001 – No Execution on Dormant Judgment If a writ is issued inside that ten-year window, the clock resets for another ten years from the date of the writ. A creditor who lets the judgment go dormant has only two years to revive it before it is permanently unenforceable.10State of Texas. Texas Civil Practice and Remedies Code Section 31.006 – Revival of Judgment Most organized creditors track these deadlines, so planning around dormancy is risky.
How to Fight the Judgment
Motion to Set Aside
A motion to set aside asks the court to erase the default and reopen the case. In district and county courts, you have 30 days from the date the judge signed the judgment. In justice court, the deadline is 14 days. If you did not actually learn about the judgment until more than 20 days after it was signed, the 30-day clock starts when you found out, with an absolute outer limit of 120 days.
To win, you have to meet all three parts of the Craddock standard:
- Your failure to answer was the result of a mistake or accident, not conscious indifference.
- You have a meritorious defense that could change the outcome on the merits.
- Granting a new trial would not unfairly delay or prejudice the other side.
Most of these motions fail on the first element. “I didn’t think they would really sue me” is not a mistake or accident in the eyes of a Texas court.
Restricted Appeal
If the deadline to set aside has passed, a restricted appeal may still be possible for up to six months after the judgment was signed.11Texas Courts. Texas Rules of Appellate Procedure – Rule 26.1 The appellate court can only consider errors that appear on the face of the existing record, not new evidence. The most common winning scenario is defective service: if the court file shows the creditor never properly served you with the original lawsuit, a restricted appeal can wipe out the judgment entirely.
When Bankruptcy Is on the Table
Filing for bankruptcy triggers an automatic stay that stops collection activity cold, including garnishments, seizures, and ongoing court proceedings tied to the judgment.12Office of the Law Revision Counsel. 11 U.S. Code 362 – Automatic Stay For someone facing active garnishment or a pending turnover order, that pause is the main draw.
Whether the debt itself can be discharged depends on what it is. Most ordinary consumer debts, contract claims, and negligence judgments can be wiped out. Federal law carves out exceptions that survive bankruptcy, including debts from fraud, willful and malicious injury, child or spousal support, certain taxes, and student loans absent undue hardship.13Office of the Law Revision Counsel. 11 U.S. Code 523 – Exceptions to Discharge If the original lawsuit alleged fraud or intentional harm, the creditor can ask the bankruptcy court to rule the judgment nondischargeable. Because of the long-term credit consequences, bankruptcy is usually a last-resort move rather than a first response, but when the judgment is large and your non-exempt assets are limited, it can be the most effective way to stop collection.