A judgment against you in Texas means the lawsuit is over and the collection phase has begun. The creditor can now place liens on real estate you own, freeze bank accounts, send a constable after non-exempt property, and ask a court to appoint a receiver to hunt down assets. Texas also gives debtors some of the strongest protections in the country, so a lot of what you own is probably off-limits. The practical question is which of your assets sit on which side of that line, and what you can still do to push back.
What a Creditor Can Actually Take
A judgment by itself does not move any money. The creditor has to use specific legal tools, and each one reaches different property.
Abstract of Judgment
An abstract of judgment is filed in the real property records of any Texas county where you might own land. Once recorded, it creates a lien on any non-homestead real estate you own there, including property you buy later.1State of Texas. Texas Property Code 52.001 – Abstract of Judgment Lien You cannot sell or refinance that property without paying the judgment first. Creditors often file abstracts in several counties at once.
Writ of Execution
A writ of execution orders a sheriff or constable to seize your non-exempt property, sell it at public auction, and hand the money to the creditor. The creditor can request it 30 days after the judgment is signed, as long as no appeal or supersedeas bond is in place.2Orange County, Texas. Texas Rules of Civil Procedure 621-656 – Writ of Execution In practice this reaches non-exempt vehicles, equipment, and other valuable personal property.
Bank Garnishment
A writ of garnishment freezes and takes money that a third party holds for you. Bank accounts are the usual target. Texas blocks wage garnishment for most consumer debts, but the moment your paycheck lands in your account a creditor can argue those dollars are no longer current wages and go after them. Direct deposits make this especially easy to execute.
Current wages still in your employer’s hands remain protected for most debts.3State of Texas. Texas Property Code 42.001 – Personal Property Exemption The exceptions are child support, spousal support, certain federal tax debts, and defaulted federally guaranteed student loans.
Turnover Orders and Receivers
When valuable assets exist but a constable cannot easily grab them, the creditor can ask the court for a turnover order forcing you to hand over non-exempt property.4State of Texas. Texas Civil Practice and Remedies Code 31.002 – Turnover Orders The court can also appoint a receiver with broad authority to find your non-exempt assets, take them, and sell them. Receivers go after financial accounts, stock certificates, rental income, and real estate.
A receiver cannot sell your property until at least 14 days after you have been served with notice of your protected property rights, which gives you a window to claim exemptions. The receivership can run up to 180 days, with extensions for good cause. Receiver fees, the creditor’s attorney fees, and other collection costs all get added to your balance, so turnover proceedings can grow the debt quickly.
What Texas Protects From Seizure
Knowing what a creditor cannot touch is just as important as knowing what they can.
Your Homestead
The Texas Constitution shields your home from forced sale for most debts.5Justia. Texas Constitution Article XVI Section 50 There is no dollar cap. The limit is acreage: up to 10 acres for an urban homestead, up to 200 acres for a rural family homestead, and up to 100 acres for a single adult’s rural homestead.6State of Texas. Texas Property Code 41.002 – Definition of Homestead
The homestead protection has exceptions. A creditor can force a sale for the mortgage used to buy the home, property taxes, qualifying home improvement loans, and a handful of other debts listed in the constitution.5Justia. Texas Constitution Article XVI Section 50 A creditor holding a general money judgment, such as credit card debt or a breach of contract award, cannot reach your homestead at all.
Personal Property
A family can protect up to $100,000 of qualifying personal property, and a single adult can protect up to $50,000.3State of Texas. Texas Property Code 42.001 – Personal Property Exemption The categories that fall under that cap include home furnishings and heirlooms, food and clothing, tools and equipment used in your trade (including boats and vehicles used for work), one motor vehicle for each licensed family member, two firearms, jewelry up to 25 percent of the applicable cap, specified livestock, and household pets.7State of Texas. Texas Property Code 42.002 – Personal Property
The cap measures fair market value minus any liens. If your car is worth $30,000 and you still owe $25,000 on it, only $5,000 counts against your exemption.
Wages, Retirement, and Benefits
Current wages owed to you by your employer are exempt from seizure for most consumer debts, with child support and certain federal debts as the main exceptions.3State of Texas. Texas Property Code 42.001 – Personal Property Exemption Retirement accounts like 401(k)s and IRAs are protected, as are Social Security, workers’ compensation, and unemployment benefits.
Can You Still Fight the Judgment?
If you first learned about the case when a creditor started collecting, there was probably a default judgment entered because you never responded to the lawsuit. Texas lets you ask for a new trial, but the window is short and the standard is specific.
Under Craddock v. Sunshine Bus Lines, you have to show three things:
- Your failure to answer was an accident or mistake, not a conscious decision to ignore the suit.
- You have a real defense to the claim.
- Granting the new trial will not unfairly prejudice or delay the creditor.
A motion for new trial generally must be filed within 30 days of the judgment being signed.8Supreme Court of Texas. In the Matter of the Marriage of Williams After that deadline, or if you were never properly served, other procedural routes exist but get progressively harder. Most people need an attorney at this point, and waiting makes everything worse.
Bankruptcy and Judgment Debt
Bankruptcy can wipe out many judgments but not all of them. Judgments on ordinary consumer debts like credit cards, medical bills, and personal loans are generally dischargeable in Chapter 7. A discharge voids the judgment to the extent it represents your personal liability, so the creditor can no longer come after you for the money.9Office of the Law Revision Counsel. 11 USC 524 – Effect of Discharge
Some judgment debts survive bankruptcy. Federal law lists the main categories:10Office of the Law Revision Counsel. 11 USC 523 – Exceptions to Discharge
- Child support and spousal support
- Most tax debts
- Student loans, unless you prove undue hardship in a separate proceeding
- Debts obtained through fraud or material misrepresentation
- Judgments for willful and malicious injury to a person or their property
- Death or injury caused by drunk driving
Even when the underlying debt is dischargeable, a judgment lien that already attached to your property does not vanish on its own. You usually have to file a separate motion in bankruptcy court to avoid the lien, especially if it impairs an exemption you would otherwise claim. Skipping that step is a common and expensive mistake.
Interest Keeps Running
A Texas judgment accrues interest from the day it is signed. The rate tracks the prime rate published by the Federal Reserve, with a floor of 5 percent and a ceiling of 15 percent.11State of Texas. Texas Finance Code 304.003 – Judgment Interest Rate As of early 2026, the rate is 6.75 percent.12Texas Office of Consumer Credit Commissioner. Interest Rates On a $50,000 judgment, that adds roughly $3,375 a year. Over the full life of an active judgment, that compounds into a far larger debt than the court originally awarded, which is why an early settlement almost always costs less than waiting.
How Long the Judgment Lasts
A Texas judgment is enforceable for 10 years from the date it is signed. If the creditor does not issue a writ of execution within that window, the judgment goes dormant.13State of Texas. Texas Civil Practice and Remedies Code 34.001 – No Execution on Dormant Judgment A dormant judgment still exists and keeps accruing interest, but the creditor loses access to enforcement tools until the judgment is revived.
The creditor has two years after dormancy to revive the judgment.14State of Texas. Texas Civil Practice and Remedies Code 31.006 – Revival of Judgment Miss that window and the judgment becomes permanently unenforceable. Experienced creditors rarely let this happen. A single writ of execution during the first 10 years resets the clock for another 10 years from the date the writ issued.13State of Texas. Texas Civil Practice and Remedies Code 34.001 – No Execution on Dormant Judgment Child support judgments are outside the dormancy rules entirely.
What a Judgment Does to Your Credit and Borrowing
Since 2017, the three major credit bureaus have stopped including most civil judgments on consumer credit reports because court records usually lack the Social Security numbers needed for reliable matching. So a judgment probably will not sink your score directly. Lenders, though, look past the credit report. Mortgage underwriters for FHA and conventional loans run public records searches during approval, and FHA guidelines require outstanding judgments to be paid off (or on a documented payment plan with a track record) before the loan can be insured.15U.S. Department of Housing and Urban Development. Mortgagee Letter 2013-24 An abstract of judgment recorded in your county’s property records will also surface in any title search, effectively blocking a home sale or refinance until the judgment is resolved.
The Tax Trap When a Judgment Is Forgiven
If a creditor accepts less than full payment to settle, the forgiven portion can count as taxable income. When a financial entity cancels $600 or more of debt, it must report the cancellation to the IRS on Form 1099-C.16Internal Revenue Service. About Form 1099-C, Cancellation of Debt You then owe income tax on that amount as if you had earned it.
There is an escape valve. If you were insolvent when the debt was canceled (your total debts exceeded the fair market value of everything you owned) you can exclude some or all of the canceled debt from your taxable income, up to the amount of your insolvency.17Office of the Law Revision Counsel. 26 USC 108 – Income From Discharge of Indebtedness If you owed $80,000 and had $60,000 in assets when the debt was forgiven, up to $20,000 of the canceled amount can be excluded. You claim it on IRS Form 982 with the return for the year the debt was canceled.