Legal Question in Bankruptcy in Texas

In the State of Texas, if a debtor as substantial credit card debt ($70K+) and has significant equity in their home, can a creditor(s) force a sale on their home to satisfy a judgment?


Asked on 6/13/12, 1:15 pm

2 Answers from Attorneys
Andrew Nichols Law Office of Andrew B. Nichols

No, your home equity is protected. However, if a creditor has a judgment against you they can file it in the deed/land records. Then at the time you decide to sell your home it would have to be satisfied. The judgment stays "attached" to the home for ten years and the judgment creditor can renew it for another ten years. The judgment creditor can keep renewing it every ten years.

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Answered on 6/13/12, 1:30 pm
Greg Wiley Law Office of Greg Wiley PLLC

One thing needs to be added, it must be a homestead. If this is investment property (i.e. rental or something else) you could have problems. In addition to the abstracted judgement (which is what Mr. Nichols described), a creditor can attempt to seize any non-exempt property. that can include a bank account.

Best of Luck

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Answered on 6/14/12, 7:58 am


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