Legal Question in Credit and Debt Law in Texas

When you failed to show up in court, the court most likely issued a "default judgment" against you, which, for practical purposes, would confirm that you owe the debt the creditor sued you for, and would award the creditor the amount owed on the debt, plus court costs and attorney fees, usually. Next step comes with the creditor "executing" on the judgment - in other words, trying to collect on the debt. Your home and car are protected under Texas law - there is a list of exemptions - just Google it and you'll find the list. There will be no criminal law for you to worry about.

However, a mechanism for collecting debt after there has been a judgment in the creditor's favor is that of getting a bank levy (garnishment) which "freezes" all the funds in your account(s)(i.e., savings, checking, investment account, retirement, etc.) If the total amount you have in your accounts satisfies the total debt amount, then the debt amount is taken and you are left with whatever is left and your accounts will be "unfrozen" (BUT, the bank is likely to charge YOU for freezing your accounts and, also, for NSF charges for any checks you may have issued before the freeze that have bounced. Also, the bank will take its attorney fees cost out of your money - off the top). If the total debt amount (plus fees and costs) exceeds the sum you have in your accounts, then your accounts will all go toward paying the total debt (and the fees and costs) and you will be left with nothing - and the "freeze" on your accounts will remain.

If this scares you, it should. Suggestion: Get your money out of your bank accounts FAST, especially if you've been using one of the nationally recognized banks, such as Wells Fargo, Chase, Bank America. You then need to figure out a way of using your money.