Legal Question in Credit and Debt Law in Texas

Re: No Fault Judgement against me

I believe you are talking about a default judgment. If you do not file a written answer to dispute any of the allegations of your creditor, the creditor gets a judgment against you "by default". This means that all of the creditor's allegations are presumed to be true.

If you do file an answer, but you really have no defenses to the lawsuit (i.e., if you owe the creditor but just can't afford to pay), the creditor eventually will get a judgment against you because they will prove their case in court.

Texas has a generous homestead exemption law, and if you own very little, the creditor will not be able to take away any of your belongings. However, judgments are enforceable for 10 years. Having a judgment against you could keep you from being able to get insurance, get certain kinds of jobs, or rent an apartment, or buy a home while it remains unpaid. If you inherit property or if your financial situation improves, the creditor may be able to reach money in a savings or checking account. Hiding money from creditors can lead to significant additional legal problems and is not something you should do.

You can always make payments on a judgment. If your creditor's attorney will not accept a payment plan you can afford to pay, contact the clerk's office in the court where the judgment is entered. Making even occasional payments on a judgment to the clerk's office is better than making no payments at all. The clerk will usually accept payments of even modest amounts.