Turning Paper into Cash - Top 3 Mistakes in Collecting Texas Judgments
- Robert Binz
- 1 day ago
- 4 min read
The process of getting a court judgment does not automatically lead to financial recovery which surprises most clients.
The process of converting court judgments into actual recoverable funds requires specialized judgment collection services.
Our Houston law firm helps clients who deal with uncooperative debtors to transform their court judgments into cash through our efficient debt collection services.
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Mistake #1: Waiting Too Long to Act
Judgment creditors commonly believe they have unlimited time to collect their court-awarded judgment. However, taking too long provides debtors with time to move or hide their assets before you can collect on the judgment.
Why Speed is Essential After a Judgment:
Judgment debtors may move liquid assets out of their bank accounts, making it impossible for you to garnish those bank accounts and making it harder to track the assets.
Judgment debtors can transfer real property to friends and/or co-conspirators that you know nothing about–making it much harder to seize the property with a writ of execution.
I had a client who had solid proof of several well-funded bank accounts owned by the judgment debtor. Unfortunately, the client waited a year before attempting to collect on his judgment. In that time, the judgment debtor emptied and closed his bank accounts. However, it may not take a full year after the judgement for accounts to empty. It is critically important to move quickly.
Mistake #2: Skipping the Asset Investigation Phase
Asset collection is impossible when you fail to discover available non-exempt assets.
Skipping the asset investigation to save on initial costs may result in unnecessary problems and expenses down the line.
In Texas, you are required to check whether the judgment debtor owns non-exempt real property that can satisfy a judgment before attempting to garnish bank accounts. It is important to perform the initial investigation to avoid making the mistake of garnishing first.
Further, Texas has specific exemptions that protect certain property from collection. For example, the law protects all homestead properties from seizure. Thus, it is important to investigate the nature of the judgment debtor’s property.
I had a client who wanted to skip the investigation to save money and just sell some personal property–heavy equipment– that the judgment debtor left in his yard. I advised that personal property would not be sufficient to satisfy the judgment and that we needed to obtain as much information as possible about the debtor’s assets before collection. However, the client pushed forward with the property sale, and that provided the debtor with time to move his other assets.
Post-Judgment Discovery Tools Are Your Best Friend
A competent attorney understands the tools available to you in the collection process to reveal a complete picture of the judgment debtor’s financial situation:
Property Deed Searches
Interrogatories and Requests for Documents (formal written questions and requests for records)
Subpoenas and Depositions (sworn testimony to uncover hidden property)
Private Investigators
Mistake #3: Failing to Renew the Judgment
Texas judgments have an expiration date. A civil judgment in Texas becomes dormant after 10 years. The simplest way to lose money on your judgment is to let it expire.
Why Renewal is a Critical Requirement
Resetting the Clock: The judgment remains active and enforceable through renewal, which restarts the 10-year collection period.
Future Solvency: The debtor lacks current assets, but their financial situation might improve over the next 10 years. Maintaining an active judgment allows you to pursue both principal and interest payments when the debtor achieves financial success.
FAQs: Texas Judgment Collection
How long does a judgment actually last in Texas?
A Texas judgment remains valid for 10 years. The judgment period extends when the debtor properly renews their judgment before it loses its active status.
Can I take my debtor's expensive house to pay the judgment?
The answer is probably no. Texas law grants state residents a broad homestead exemption that protects their primary home from civil judgment enforcement. However, your attorney needs to check whether the house is actually a homestead.
What is a "Writ of Garnishment"?
A writ of garnishment functions as a court-issued command to retrieve money that the debtor maintains in accounts at third-party institutions (such as banks).
Don't Let Your Judgment Become Worthless Paper
The time to file a judgment lien in Texas runs out after a court victory. Your court victory requires immediate, aggressive legal action to secure monetary compensation.
I'm Robert Binz, and let's turn your judgment into results.
Contact Johnsen Law today to schedule a consultation regarding your judgment collection strategy.
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