Credit Card Judgment

Credit Card Judgment in Texas

Many consumers are surprised to learn that a defaulted credit card can turn into a lawsuit and then a judgment.  A judgment is where the creditor has won their lawsuit against you.  With a Judgment the creditor can now garnish bank accounts.

Garnishment of Bank Accounts

Preventing a judgment is extremely important in a credit card lawsuit because a creditor has to power to garnish your bank accounts with a judgment.  They cannot garnish wages in Texas but they can certainly garnish your account after you deposit money into it.  For more information on this see Garnishment of Bank Accounts.

Writ of Execution

With a Judgment the creditor can also send the sheriff or constable out to your home to sell any non-exempt property to pay off the judgment.  For more information on this please see Writ of Execution.

Post Judgment Discovery

Another problem with a judgment is that the creditor will likely send you questions for you to answer about your assets.  You may be required to produce your bank account information as well as other financial information.  If you refuse to answer, the Court could actually have you arrested if you fail to obey a Court order. For more see Post Judgment Discovery.

Cloud Title on Homestead

One of the most common issues that consumers are not aware of is that a credit card judgment will cloud title on your homestead.  The creditor will file an abstract of judgment and when they do this, you will likely have issues trying to sell your home or even re-finance your home.  A partial release of judgment lien could be filed to rectify this situation.

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