Christian Debt Recovery

Texas Collection Debt Laws

January 2nd, 2010 |

Author: Gavin

Possessions Exempt from a Texas Writ of Execution

The perception that it’s hard to collect a judgment in Texas is a correct perception, at least as the state compares to other state collection legal guidelines. But, that is not to say that it’s impossible to collect a judgment in Texas. It is just more challenging than in most other states. One of the reasons it is more challenging is that Texas has a somewhat liberal list of property that’s exempt from seizure and sale in the enforcement of a judgment.

The general rule is that a Texas judgment debtor’s property is subject to levy and execution if it is not exempted by the Texas constitution, a statute or other rule of law. Section 42 of the Texas Property Code then lists particular categories of assets that are exempt from levy and execution to satisfy a judgment. These are broad categories of exemptions. Each category is worthy of further explanation and will be the subject of future articles. For now, understand that these categories represent broad areas of exemptions. It is also worthy to note that there are exceptions to these exemptions if the debt being collected is for a child support obligation.

With that in mind, the following broad categories of property are exempt from levy and execution in Texas to pay a judgment:

1. The homestead

2. Personal property with a net fair market value up to $60,000 for a family and $30,000 for a single adult.

The “net fair market value” basically means that you should establish the fair market value and after that take away from that amount the dollar amount of liens, if any, on the property.

3. Present wages for personal services

This is the one that usually trips people up on Texas because it is distinct from most other states. So, for sake of complete clarity, know that Texas doesn’t permit you to levy and execute on your judgment debtor’s wages to pay your judgment. There is, nonetheless, an exception for the enforcement of court-ordered child support.

4. Professionally prescribed health aids for the judgment debtor or a dependent of the judgment debtor

5. Certain retirement benefits and funds

These retirement benefit exemptions are worthy of an article in their own right. Suffice it to say for now that retirement benefits are by and large “off limits” to a levy and execution in Texas.

6. Workers’ compensation payments

7. Cemetery lots held for purposes of sepulchre

8. Property that the judgment debtor has pledged, assigned or mortgaged as collateral for a debt.

Normally, if the judgment debtor has property that has not been given as collateral for a debt, that property ought to be levied first. But, if the only possessions he owns has been given as security, the judgment creditor may levy on that property and sell it under execution but only the interest owned by the judgment debtor can be sold. What this really means is that the judgment creditor must make sure the property sells for an ample sum to pay the secured note on the property, the costs of the sale and then the remainder is applied to the judgment.

9. Assets held by a trustee in a spendthrift trust for the benefit of the judgment debtor

10. Insurance benefits

11. Alimony, support, or separate maintenance benefits the judgment debtor gets as support or the support of dependents

12. A religious bible or other book containing sacred writings of a religion seized by a creditor other than a lessor of real property who is exercising the lessor’s contractual or legal right to remove personal property after a tenant breaches a lease agreement for or abandons the real property; and

13. Judgments of Texas courts

If your judgment debtor has a viable judgment against another person or company and is receiving payments on that judgment, you cannot levy and execute on that judgment. Nevertheless, you may be able to acquire a turnover order to get to those payments or the dollar value of that judgment.

This catalog of broad areas of exemptions is a nonexclusive list. But, this list does denote those areas you’ll likely come across if you’re attempting a levy and execution against an individual judgment debtor.

About the Author

Harvey L. Cox is a an attorney and certified mediator in Texas. He is the author of How to Collect Your Own Judgment in Texas. To sign up for FREE lessons on how to collection your own judicial judgment in Texas, go to the Texas Judgment Collection Center.

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