What Creditors Can Do After Suing You in Texas
- Author: Mike Weston
- Last Modified: May 10, 2025
If you’ve been sued in Texas by a credit card company or debt buyer and lost — especially through a default judgment — it’s normal to feel anxious about what happens next. A judgment gives the creditor legal rights to collect the amount awarded, and Texas law offers several post-judgment remedies that may impact your finances and property.
This article explains what creditors can (and cannot) do to collect after getting a judgment, so you can understand your risks and your rights.
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🧾 First, What Is a Judgment?
A judgment is a court order saying you owe a certain amount of money. In debt cases, this often comes after:
- You were sued for unpaid credit card or collection account debt
- You didn’t respond or appear in court (called a default judgment)
- Or, you went to court but the creditor proved you owed the debt
Once a judgment is entered, the creditor becomes a judgment creditor, and you become a judgment debtor. The creditor can then use certain legal tools to try and collect.
💼 Common Post-Judgment Remedies in Texas
Unlike some other states, Texas protects many types of income and property, but creditors still have effective ways to pursue repayment. Here’s what they may try:
In many cases, the original creditor (like a bank or credit card company) has sold the debt to a third-party debt buyer, such as Midland Credit Management, Portfolio Recovery Associates, or LVNV Funding.
Other times they are original creditors like Chase, Bank of America, American Express or Capital One.
📝 1. Abstracting the Judgment (Creating a Lien)
Creditors often file an abstract of judgment in the county property records. This doesn’t take your home, but it creates a judgment lien that attaches to non-exempt real estate in your name.
➡️ Why it matters: If you try to sell property that’s not your protected homestead, the lien may block the sale until the debt is paid.
🪪 2. Asset Discovery Tools (Finding Out What You Own)
A creditor has the right to investigate your finances. They might:
- Send post-judgment discovery (questions or document requests)
- Require you to appear at a judgment debtor examination in court
- Subpoena your bank or employer for information
➡️ Why it matters: These tools help creditors uncover bank accounts, vehicles, and other assets they might try to reach.
🏦 3. Bank Account Garnishment
Texas law does allow creditors to freeze and seize money in your bank account — unless the funds are exempt (protected). Common exempt funds include:
- Social Security
- VA benefits
- Child support
- Unemployment
- Some retirement income
➡️ Why it matters: If you mix exempt and non-exempt funds in the same account, the bank may freeze everything until a judge sorts it out.
🚫 4. Wage Garnishment (Not Allowed for Consumer Debt)
Texas does not allow wage garnishment for consumer debt like credit cards or collection accounts. Your paycheck is safe from being garnished unless the debt involves:
- Child support
- Student loans
- IRS tax debt
➡️ Why it matters: If a debt buyer is threatening to garnish your wages for credit card debt, they’re misleading you.
🔄 5. Turnover Orders and Receiverships
If a creditor believes you own non-exempt assets (like money in a bank account, stocks, or rental income), they can ask the court for a turnover order. This can lead to:
- A receiver being appointed to take control of your property or accounts
- Court orders requiring you to turn over certain items or money
➡️ Why it matters: Receiverships are growing in use and can be very aggressive. They can request bank records, sell non-exempt property, and even intervene in business income.
🛡️ What Creditors Can’t Do in Texas
Texas law gives consumers significant protection. A judgment creditor cannot:
- Take your homestead (primary residence)
- Take your wages for typical debt
- Seize your protected property, like certain household items, a vehicle (up to a value limit), and tools of your trade
- Harass or threaten you with criminal charges — debt is not a crime
📅 How Long Can Creditors Try to Collect?
A Texas judgment is valid for 10 years, and creditors can renew it for another 10. That means they may try to collect for decades unless you:
- Pay or settle the debt
- Successfully challenge or vacate the judgment
- File for bankruptcy, which may eliminate it (depending on your situation)
🧠 What Should You Do If You Have a Judgment?
Here are your next steps:
- Don’t ignore it. The judgment won’t go away on its own.
- Check if service was proper. If you were never served correctly, you may be able to overturn the judgment.
- Monitor your bank account. Keep exempt funds separate and be cautious with deposits.
- Know your exemptions. You may be entitled to keep more than you think.
- Talk to a legal aid group or attorney. There may be options to negotiate, challenge, or settle the debt.
📌 Final Thoughts
If you have a judgment in Texas from a credit card company or debt buyer, you still have rights. While creditors have powerful tools to collect, Texas laws protect your wages, home, and many personal items. Knowing what actions are legal — and what’s off limits — is the first step in protecting yourself.
Mike Weston is a seasoned debt lawsuit defense attorney and founder of Weston Legal. Since 2005, Mike has devoted his career to compassionately helping consumers struggling with issues involving their personal and business debts. Mike is grateful to have been able to help tens of thousands of clients become empowered with knowledge on the path to financial stability.
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