Debt Collection & Payday Loans This article explains the protections that debtors have against debt collectors.
Here, learn how the debt collection process works, especially when a creditor is suing to collect a debt. Participating in the process and being aware that certain property cannot be lawfully taken will help debtors protect their interests. But debtors may need to take action to assert those protections.
In Texas, it is possible for a creditor to place a lien on your home for unpaid debt. This implies that the creditor may foreclose on your home and sell it to cover the debt if you fail to make payments. Nonetheless, there are a few crucial details regarding judgment liens in Texas to be aware of, such as:
- What is a judgment lien? A judgment lien is a legal claim that a creditor has against your property. This lien allows the creditor to collect the debt from the proceeds of the sale of your property.
- How does a creditor get a judgment lien on my house? A creditor can get a judgment lien on your house by suing you for the debt and winning a judgment in court. Once the creditor has a judgment, they can file a lien with the county clerk’s office.
- What are my rights if a creditor has a judgment lien on my house? You have the right to pay off the debt and have the lien removed. You also have the right to sell your house and use the proceeds to pay off the debt. If you don’t pay off the debt, the creditor can foreclose on your house.
- Can I remove a judgment lien from my house? Yes, you can remove a judgment lien from your house by paying off the debt, filing for bankruptcy, or getting the judgment overturned in court.
What is Unsecured Debt?
Unsecured debt is debt that is not backed by collateral. This implies that if you default on the debt, the creditor cannot seize your belongings. Examples of unsecured debt include credit card debt, medical bills, and personal loans.
How Can I Protect My House from Creditors?
You can take the following actions to keep creditors away from your home:
- Pay your debts on time. This is the best way to avoid having a judgment lien placed on your house.
- Keep your credit score high. This will make it more difficult for creditors to get a judgment against you.
- Consider filing for bankruptcy. This can discharge your debts and prevent creditors from taking your house.
What Should I Do If a Creditor Has a Judgment Lien on My House?
You should speak with an attorney right away if a creditor has placed a judgment lien on your home. An attorney can assist you in negotiating with the creditor and in understanding your rights and options.
It is crucial to know that in Texas, debtors who have unpaid debt have the right to place a lien on your home. However, there are steps you can take to protect your house from creditors. If you have any questions, please contact an attorney.
Frequently Asked Questions
- Can a creditor put a lien on my house if I don’t live there? Yes, a creditor can put a lien on your house even if you don’t live there.
- Can a creditor put a lien on my house if I am behind on my property taxes? Yes, a creditor can put a lien on your house if you are behind on your property taxes.
- Can a creditor put a lien on my house if I am married? Yes, a creditor can put a lien on your house if you are married. However, the lien will only attach to your community property, not your separate property.
- Can a creditor put a lien on my house if I am filing for bankruptcy? Yes, a creditor can put a lien on your house even if you are filing for bankruptcy. However, the lien will be discharged if you successfully complete your bankruptcy case.
Additional Resources
- Texas Law Help: Rights of Debtors in Texas
- The Law Office of David A. Fernandez, P.C.: Removing a Lien Put on Your Home by a Texas Judgment Creditor
Disclaimer
I am an AI chatbot and cannot provide legal advice, The information provided above is for general informational purposes only and should not be considered legal advice, Please consult with an attorney if you have any questions about your specific situation
What about my retirement from the government like VA benefits or Social Security?
The majority of government-funded retirement and disability benefits, such as Social Security, VA, SSI, civil service, foreign service, longshoremen’s compensation, and harbor worker’s compensation, are excluded by federal law. Money in a bank account cannot be taken to satisfy a judgment if government benefits are deposited directly into the account and no other funds are added. If this applies to you, notify your bank by sending an anti-garnishment letter.
The bank is informed via an anti-garnishment letter that the account’s income is solely derived from government retirement plans or benefit programs that are exempt. It is essential to be sure that the benefit is the only income in the account. The bank should automatically check what exempt amount was deposited within the last two months if your Social Security is deposited electronically into your account and give you, the account holder, access to that amount. The bank is in charge of safeguarding the entire exempt amount, even if the exempt funds are combined with other funds in the bank account. Also, whether a co-owner is on the account does not make a difference.
Important: Federal government debts, unpaid child support, federal and state income taxes, SBA and HUD loans, and guaranteed student loans can all be paid off with benefits that are normally exempt.
Can I transfer or give away property to prevent creditors from taking it?
No. Converting non-exempt property to exempt property in order to deceive, impede, or postpone a person who is entitled to the property is prohibited. In other words, it is illegal to give away property to keep from paying a debt. In addition, it is illegal to transfer ownership of property with the intention of obstructing, postponing, misleading, or preventing a creditor from getting their money back when you are unable to pay your debts. In other words, it is illegal for a debtor to give away property to make the debtor judgment-proof.