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Customer Question

VanDLaw:

-- ALL ISSUES AND ANSWERS RELATE SOLEY TO TEXAS LAW --

Further your reply to another request below I have more questions concerning this particular response by you:

"First, in most cases, a creditor can not get a writ of garnishment without first going to court and getting a judgment against you. Once a creditor has a judgment he may use what is called a writ of garnishment to get money or property that you are "owed" by another person. For example, when you put money in a bank account the bank has an obligation to return that money to you. In effect, they are a debtor and owe you the money. A creditor with a writ of garnishment may garnish these funds and take them to satisfy the judgment."

With that said, once a judgment and a writ of execution (garnishment) has been filed, since WAGES are not subject to a writ of garnishment as an employee in TEXAS, but the monies in your bank account are techncially subject to beging levied, what prohibits a creditor from waiting till you are paid and then levy your bank account, because as soon as you deposit your wages in your bank account you become a creditor as to your bank??

Lets assume that the anawer to my previous question is that there is some tracing rule in TEXAS whereby the creditor can't levy your bank account from wages deposited therein. The next question is how do you not allow the creditor to levy monies in your bank account that are not deemed earned wages?

Withdraw all the money and live off cash??

Set up a bank account soley in your wife's name and deposit all monies there?
     Then the question becomes, because TEXAS is a Community Property (CP) state, technically, all wages earned by either spouse and monies in bank accounts are presumed CP (absent a valid agreetment to treaty all community property as seperate property.)

Additionally, as far as judgments are concerned, in the State of TEXAS, assuming the creditor sues you within the 4 year statute of limitations from the date of default and wins a judgment it lasts for 10 years, and apparently can be renewed indefinitely as long as it is done within one year after the judgment expires.

My question is how likely is the creditor going to renew the judgment after the 10 year period has lapsed? Furthermore, can a third party debt collector (of which it would mostly likely be by the time a judgment is issued and not the orignial credit the credit card company) sell the debt to another collector once a judgment has been issued?

Submitted: 1085 days and 11 hours ago.
Category: Bankruptcy Law
Status: CLOSED
 
 
 
 
 
 

Optional Information

Texas

Already Tried:
RE: WRIT OF EXECUTION (GARNISHMENT)

This issue concerns Community Property (CP) as it relates to Texas. The question: Is there a way, other than the hassle of constantly shifting monies from bank to bank or living off cash, such as transferring all monies to a wife's separate bank account (solely under her name) as to not allow the creditors (3rd party debt collectors or the original creditor, i.e., the credit card company, if they happen to sue, obtain judgment and a writ of execution (garn) to reach those monies currently there and future deposited wages an an employee in Texas? or should I consult with a Texas attorney, who is an expert on CP law?

RE: JUDGMENTS

The good news, as you mentioned, is that creditors who have obtained a judgment do not typically renew those judgments, 10 years in the State of Texas, assuming

that the cause of action was filed within 4 years from the date of default as those are the statute of limitations in Texas.

On a side note, is there a certain range or set of facts and circumstances, such as the higher the credit card debt the more likely they are to renew, or it's a case by case basis when the time comes to renew a judgment?

The reason the last question is so important is that if you never have over the $60,000 property exemption (Sec. 42.001(a)(1)) under Texas law, after excluded property is taken into account (i.e., vehicles, wages, pets, home and so forth) is that it relates to ones credit report. The logic is that the creditor will not be able to take one cent from your for unsecured debt (i.e., credit card debt) for those 10 years as long as your financial situation stays within the Texas property code paramaters (i.e., all things being equal, you always have less than $60K in non-exempt property for the duration of the judgment).

Returning to the issue of the credit report, a judgment should only stay on ones credit report for only 7 years absent any activity.

 
 
 
 
 
 

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