Can a creditor put a lien on my house for unsecured debt in Texas?

Asked by: Emelie Langworth  |  Last update: June 28, 2023
Score: 4.3/5 (67 votes)

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.

Can a creditor place a lien on my home in Texas?

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.

What property is exempt from creditors in Texas?

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).

Can credit card debt take your house in Texas?

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.

Can you be sued for unsecured 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.

Can a creditor put a lien on Allison's home?

39 related questions found

What debt collectors Cannot do in Texas?

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.

What happens if a creditor sues you in Texas?

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."

How Long Can creditors come after you in Texas?

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.

Can debt collectors come to your house?

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.

What is the Texas Debt Collection Act?

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.

What assets are protected from creditors in Texas?

What Assets Are Protected From Creditors in Texas?
  • Home furnishings, including family heirlooms.
  • Provisions for consumption.
  • Farming or ranching vehicles and implements.
  • Tools, equipment, books, and apparatus, including boats and motor vehicles used in a trade or profession.
  • Wearing apparel.

What happens when you get a Judgement against you in Texas?

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.

Can a creditor garnish my bank account in Texas?

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.

How do I get a lien removed from my property in Texas?

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.

Is there a statute of limitations on property liens in Texas?


Can a lien be filed on a homestead in Texas?

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.

Can I lose my home over credit card debt?

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.

What debt collectors Cannot do?

A debt collector is not allowed to:
  • Use force or threaten to use force against you or your family.
  • Physically threaten you or your family.
  • Give, or threaten to give, information to the consumer's employer that may affect their opportunities as an employee.
  • Serve any false legal documents.

Can bailiffs enter my home for someone else's debt?

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.

How long before a debt is uncollectible?

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.

Is Texas A garnishment state?

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.

What is a default Judgement in Texas?

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.

Can you go to jail in Texas for debt?

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.

How do you get a debt lawsuit dismissed in Texas?

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.

How do you respond to a debt lawsuit in Texas?

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.