As we've already answered earlier in the article, YES, creditors can put a lien on your house for unsecured debt but they have to go through a judgment process. This means that they have to go to court, sue you, and win the case before they can have the right to place a lien in your house.
Despite Texas' homestead exemption, creditors can still place judgment liens against a debtor's primary real estate. Texas laws only exempt primary residences from seizures, not liens. If a debtor sells a homestead with a lien, the debtor has six months to invest the proceeds into a new primary residence.
Exempt property includes most of what you need to live: Household items, up to $30,000 for a single person and $60,000 for a family. Vehicles, one for each licensed driver in the house. Your homestead, up to 10 acres urban property (single or family) and up to 100 acres rural (single) and 200 acres (family).
Assuming the property meets certain criteria, the Texas homestead exemption allows residents to exempt the entire value of their home from creditors. This means that, no matter how much you owe, you won't lose your house because of debt in Texas.
If the debt is unsecured and the creditor has gotten a court judgment, the creditor may be able to take the debtor's non-exempt property. Many people do not have anything that can be taken by a creditor to pay a judgment.
Debt collectors may not harass or oppress you or make false statements. A debt collector may not abuse you or any third party they contact. They cannot call you at inconvenient times or places, such as before 8:00 a.m. or after 9:00 p.m., unless you agree. A debt collector may not use threats of violence or harm.
If the creditor or debt collector wins the lawsuit, they will obtain a judgment against you. That judgment can then be enforced in a variety of ways unless you do not have any money or assets that the creditor could claim. This is commonly called being "judgment proof."
Texas and Federal Law
The statute of limitations on debt in Texas is four years. This section of the law, introduced in 2019, states that a payment on the debt (or any other activity) does not restart the clock on the statute of limitations.
Debt collectors don't have any special powers that can help them to collect a debt. You might find that they contact you through phone calls and letters however in some cases they may visit your home too. If a debt collector shows up at your house, you don't have to open the door to them or let them in.
The Texas Debt Collection Act is the State of Texas's equivalent of the federal Fair Debt Collection Practices Act (FDCPA). Both laws aim to protect consumers from unfair collection practices and do so by prohibiting debt collectors from using abusive, fraudulent, or misleading tactics during attempts to collect debts.
Judgments awarded in Texas to a non-government creditor are generally valid for ten years but they can be renewed for longer. If a judgment is not renewed, it will become dormant. You can attempt to revive a dormant judgment in order to continue to try and collect the debt.
While your wages cannot be garnished in Texas, a creditor can place a levy on your bank account. Once your paycheck is placed into your bank account, it is no longer considered wages and can be seized. This means that creditors can still take money from your checking or savings account, or other financial institution.
If a lien is filed on your property and you believe the lien is wrongful, you, the property owner have a right to contest the lien. In some cases, you may be able to file a summary motion to remove a lien. This is a lawsuit filed in district court that will allow the almost immediate removal of the lien.
THERE IS NO STATUTE OF LIMITATIONS. LIEN. REMEDIES CODE §16.035].
The judgment lien will prevent the sale/refinancing until the lien is released by the appropriate document filed in the county clerk's records. In Texas, homesteads are considered favorites of the law. The Texas Constitution provides that a homestead is exempt from seizure for the claims of most creditors.
However, the answer to your question is: probably not. Credit card debt is unsecured debt. In order to lose your home, several things would have to happen. First, you would have to be sued in court and lose.
Always keep in mind that if the debt is not legally yours, a bailiff has virtually no power. They cannot force entry into your home or use a locksmith to get your front door open.
In California, the statute of limitations for consumer debt is four years. This means a creditor can't prevail in court after four years have passed, making the debt essentially uncollectable.
Some states set a lower percentage limit for how much of your wages are subject to garnishment. Under Texas law, your wages can only be garnished for child support, spousal support, federal student loans, and other federal debts, like taxes. Creditors can't garnish your wages for the repayment of consumer debts.
A “default judgment” is a court order made without the respondent because: the respondent was served and did not file an answer by the deadline, or. the respondent filed an answer and was given notice of a hearing but did not show up for the hearing.
You can't be arrested for debt just because you're behind on payments. No creditor of consumer debt — including credit cards, medical debt, a payday loan, mortgage or student loans — can force you to be arrested, jailed or put in any kind of court-ordered community service.
In a motion to dismiss, you can ask the judge to throw out any or all of the claims in the lawsuit. The judge will review your claims and issue a ruling. Use SoloSuit to respond to a debt collection lawsuit and win your case.
Your answer can be a handwritten letter to the court that says you do not agree with the lawsuit. Include your case (cause) number and mailing address and any defenses you may have to the lawsuit; for example, the amount they claim you owe is incorrect, the account isn't yours, or the debt is older than 4 years.