Here we are at the final stage. You covered your bases during the pre-application process, decided to extend credit to the consumer, took steps to reduce your risk while the credit relationship was still good, followed the proper protocol when it came time to collect the debt, and won a judgment following a successful lawsuit. Now you can collect the money, right?
In the final part of this three-part series, we will discuss what you can do once a judgment has been rendered in your favor. Grab the popcorn, sit back, and enjoy the show. Here’s where you get paid.
Finders Keepers
After winning the judgment, you’re now able to collect on the debt by way of a post-judgment discovery. A post-judgment discovery will allow you to locate the debtor’s assets and retain them as payment for the money you are owed.
It’s pretty simple. You or your attorney will pose questions to the debtor as to the whereabouts of his or her assets. If the debtor refuses to respond and reveal the location of their assets, they can be held in contempt of court and face jail time.
Abstract of Judgment
An abstract of judgment allows you to effectively put a halt to the selling of or purchasing of property by the debtor until they have paid their debt in full. The abstract of judgment is filed with the clerk in every county where the debtor owns property.
Putting a stop to the purchasing and selling of property may work against some debtors, but what if property really isn’t their thing? There are other options; namely, hit them in their wallet.
Freeze Their Funds
Okay, okay, a writ of garnishment, on the surface, looks like another lawsuit, but this one is filed against the bank where the debtor does business, effectively freezing their accounts.
Account numbers? We don’t need no stinkin’ account numbers for a writ of garnishment! All you need to know is the name and location of the bank to file the writ.
Execution is Everything
When all else fails, it’s time to involve the local law enforcement by having the court clerk issue a writ of execution. Surely the flash of a badge will result in full payment.
Once the court clerk issues the writ of execution, the sheriff or constable where the debtor resides will exercise his authority to collect any non-exempt property. This is most useful for operating companies because they don’t have any exempt property.
However, individuals have a lot of exemptions that would not be available to satisfy a judgment.
And here’s the best part: a writ of execution allows you to take any real property not considered a homestead, such as campers, weekend race cars, ATVs, etc.
A writ of execution can also be used to sell real property owned by a company.
When it comes down to it, relief comes in many shapes and sizes for the collection of a debt post-judgment. Your best bet is to contact The Cromeens Law Firm for expert legal advice from Texans who have years of experience in navigating debt collection law.
The Cromeens Law Firm provides clients with expert advice concerning Texas law in regard to debt collection. Speak with one of our experienced attorneys today by calling 713-489-5792 or contact us online to discuss your options.
This article is intended as a general educational overview of the subject matter and is not intended to be a comprehensive survey of recent jurisprudence, nor a substitute for legal advice for a specific legal matter. If you have a legal issue, please consult an attorney.
