Collecting a default judgment in Texas is possible through a garnishment lawsuit, abstracts of judgment or through the debtor's simple payment, according to the Law Office of Tom M. Thomas II. A debtor with a default judgment in Texas can choose to pay the debt owed immediately to avoid facing other legal actions.Continue Reading
When a debtor pays the amount in full after the default judgment, the problem is solved in the creditor's mind, and the debtor does not face additional hardship due to the debt. Many debtors are not in a position to pay for the entire debt at once, so the creditors push for other payment measures to ensure that they receive their money.
One of these payment options is a garnishment lawsuit. A creditor files the garnishment lawsuit against the debtor's bank, which prompts the bank to put a hold on the debtor's account. If the creditor wins the lawsuit, the bulk of the debtor's bank account goes to the creditor to pay the full sum.
The other payment option is an abstract of judgment. An abstract of judgment is when the creditor files an abstract with the county records custodian to orchestrate a lien against the property. This makes it nearly impossible for the debtor to sell or buy real estate while the judgment lien is in place. This can help force the debtor to pay the debt.Learn more about Debt Law
As of 2015, individuals with assets exceeding $2,000 should reduce their holdings before applying for Medicaid in Texas, advises the Law Office of Antoinette Bone. Applicants are also required to be residents of the state and have a gross monthly income not exceeding $2,094.Full Answer >
A debt collection letter should include the amount of the debt, the debtor, how the individual can dispute the debt and how he can verify the debt, according to the Consumer Financial Protection Bureau. All of the information has to be received within five days of initial contact.Full Answer >
A debt collector does not have the right to go inside a debtor's home without their permission as of 2015, according to CTLawHelp. A debt collector also cannot contact friends, family or neighbors regarding a debtor's debt, however, as noted by the Federal Trade Commission, they can be contacted at least once in an effort to locate a debtor. Threatening a debtor with jail time is also prohibited under the Fair Debt Collection Practices Act.Full Answer >
The debtor in a bankruptcy case receives a notice of a discharge by mail once the discharge is completed, according to the United States Courts. The timing of the discharge depends on the type of bankruptcy case. Individual chapter 7 bankruptcies are usually discharged four months after the petition is filed with the clerk. Individual chapter 11, 12 and 13 bankruptcy cases are usually discharged after debtor payments are completed.Full Answer >