Bank Account Garnishment and Liens in Texas: Know Your Rights

Being in debt is stressful enough. Facing a judgment makes everything worse.

A judgment is a court order that holds you liable for money. Judges typically issue judgments when you owe money and fail to pay. If the amount is large enough, creditors file a complaint with local courts.

The judge decides based on the facts presented. If they rule against you, the debt collector can take action to collect funds.

Two common collection methods include issuing liens and garnishing wages. A lien gives the debt collector the right to seize your asset. Garnishment allows them to take money from your paycheck or bank account.

Debt collectors must follow state laws when collecting judgments. Texas residents have strong protections against aggressive collection tactics. You might even be considered “judgment proof” depending on your circumstances.

Knowing your rights helps you respond appropriately to debt lawsuits. Our partner Solo can help you fight back against unfair collection attempts.

What is the Standard Protocol for Wage Garnishment?

Many states let debt collectors garnish wages directly after a judgment. Some states allow collectors to garnish up to 25% of your wages. These funds disappear before you even see your paycheck.

The headaches don’t stop there. Most states give debt collectors the ability to put liens on vehicles. Losing your car makes getting to work nearly impossible.

Texas puts a stop to many merciless debt collection tactics. Debt collectors aren’t powerless in Texas, but they must play by fairer rules.

How Does Wage Garnishment Work in Texas?

Texas wage garnishment laws are unique and protective. The terms courts use to describe income garnishments can be confusing.

When a debt collector wins a judgment and requests wage garnishment, the judge issues a Writ of Garnishment. Texas law prohibits using this Writ to garnish “incoming wages.” Incoming wages means funds you haven’t yet received.

Debt collectors who win judgments must contact your bank instead. They present the Writ of Garnishment and freeze your bank account. Collectors can then obtain funds directly from your account.

Your wages can be garnished if you have one of four special debt types:

• Unpaid taxes
• Student loans
• Spousal support (alimony)
• Child support

Otherwise, your wages remain safe until they hit your bank account. You could request paper checks and skip direct deposit until you resolve your financial troubles.

The best approach is avoiding lawsuits altogether. Our partner Solo helps you respond quickly to collection letters and settle outside court.

Can You Be “Judgment-Proof” in Texas?

Yes, you can become judgment-proof in Texas. It’s easier to achieve judgment-proof status in Texas than in many other states.

You’re “judgment-proof” if you don’t own anything debt collectors are allowed to take. Collectors will grab anything to pay your bill, including family heirlooms, jewelry, firearms, tools, and boats.

Texas provides strong protections for your essential property. Even your livestock is protected.

What Specific Lien Protections Does Texas Law Provide?

All lien protections are listed in Texas Property Code Title 5, Chapter 42.

These exemptions don’t apply to lenders who financed your purchase. If you stop making car payments, the lender can repossess it. They already have a lien on the vehicle.

The protections below prevent other debt collectors from placing liens on specific property. No lien means no seizure.

Protected Property in Texas

Your homesteaded home is protected. If you use it as your primary residence, it cannot be seized.

Your cars are safe too. Texas law protects one vehicle per licensed driver. If you and your spouse each have a license, two vehicles are exempt.

Other items exempt from liens in Texas include:

• Family heirlooms
• Farming equipment (tractors, mowers)
• Boats used for your profession
• $25,000 in jewelry for families ($12,500 for single adults)
• Two firearms total
• Two horses, mules, or donkeys
• 12 head of cattle
• 60 head of other livestock (pigs, goats)
• 120 fowl

Texas offers plenty of protections when debt collectors sue you. You can still lose by default if you don’t respond to the complaint within the time frame (usually between two weeks and 30 days).

To exercise these rights and protect your assets, respond quickly. Doing so saves stress and might help you settle out of court.

How to Respond to a Debt Lawsuit in Texas

If you’ve been sued for debt, the first step is responding with a written Answer. Follow these three steps:

1. Answer each claim listed in the complaint document
2. Assert your affirmative defenses
3. File your Answer with the court and send a copy to the party suing you

Responding to a lawsuit protects your rights under Texas law. You can challenge the debt, question the collector’s authority, and avoid default judgment.

Our partner Solo makes responding simple. Their step-by-step process asks all necessary questions to complete your Answer. An attorney reviews your document before filing.

What Happens After You Respond?

After filing your Answer, the collector must prove their case. They need to show you owe the debt and they have the right to collect it.

Many debt collectors can’t provide adequate proof. They may have purchased the debt from another company without proper documentation. Your response forces them to prove their case or drop it.

Settlement becomes possible once you respond. Collectors often agree to reduced amounts rather than pursuing lengthy court battles. Responding puts you in a stronger negotiating position.

Don’t let debt collectors intimidate you with threats of garnishment. Texas law is on your side. Take action today to protect your rights and assets.