Abstract of Judgment in Texas

Once a judgment is obtained, one post judgment collection option is for Texas Turnover Receivers to file an Abstract of Judgment in the real property records of the county or counties in which the debtor(s) have real property or will own real property in the future.  An Abstract of Judgment is a document that that is filed with the real property records to create a lien on certain property owned by the debtors.  This document is not automatically filed after a judgment is obtained.  Extra steps must be taken in order to create the Abstract of Judgment and file it in the real property records, which includes a fee charged by the county lien records office.

An Abstract of Judgment places a cloud title on the debtors’ homestead or other properties owned, such as rental properties.  In Texas, a property that is designated as a homestead by the owner or owners is protected from most types of creditors.  Under Texas law, you are allowed one homestead and this must be your principal residence.  In order to designate a property as a homestead, the owners must properly file a residential homestead exemption form in the county records in which the real property is located. While it is true that most judgment creditors cannot forcibly sell your residential home (homesteaded property) in Texas, an abstract of judgment may still hold up the sale or refinance of the property. 

However, if a debtor has rental property or other property, such as rental homes, then these types of properties are not exempt.  Once appointed, the Receiver can go back to court and ask that the Judge approve the sale of the rental or other property that is not a homesteaded property, which is allowed under the signed Turnover Order.

An Abstract of Judgment is good for 10 years.  A judgment becomes uncollectable ten years following rendition.  However, abstracting the judgment within the ten year period will keep it alive for the next ten years.  In other words, renewing the judgment by refiling the abstract of judgment before the end of the ten year period allows the creditor to avoid losing the power to collect on the judgment.

The filing of an Abstract of Judgment can be done in conjunction with obtaining a Turnover Order from the court and having our recommended Receiver be approved by the Judge.

For more information about what property and income is exempt in Texas, click here.

To find out about Turnover Orders, which is the best way to collect on an outstanding judgment in Texas, click here.

To find out more about what a Receiver can do in Texas, click here.

For more information, contact Texas Turnover Receivers!