Jonah Patel
Texas law protects certain types of property from being taken by creditors to pay debt judgments. This includes up to ten acres of an urban family home, plus improvements, and up to 200 acres in rural areas (100 acres for single adults). However, there are some exceptions to this rule, including claims from mortgage lenders. The Texas Constitution also outlines specific requirements that must be met before a lender can commence foreclosure.
| Characteristics | Values |
|---|---|
| Property types protected from being taken to pay judgment creditors | Up to 10 acres of an urban family home, plus improvements, and up to 200 acres in rural areas (100 acres for single adults) |
| Other protected property | Personal property with an aggregate value of $100,000 for a family and $50,000 for a single person, including home furnishings and family heirlooms |
| Foreclosure | Lenders must give written notice by mail and an opportunity to remedy the condition creating the ground for foreclosure or to pay the reverse mortgage debt |
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What You'll Learn
- Texas law protects your homestead from forced sale to pay most debts and judgments
- Texas law protects other property types from being taken to pay judgment creditors
- Texas law protects personal property with an aggregate value of $100,000 for a family and $50,000 for a single person
- Texas law protects income and benefits from creditors
- Texas law protects property from being taken by creditors to pay debt judgments
Texas law protects your homestead from forced sale to pay most debts and judgments
Claims from mortgage lenders, the IRS, governments who are owed property taxes, and some homeowners associations are limited exceptions to this rule. Additionally, personal property with an aggregate value of $100,000 for a family and $50,000 for a single person is protected. This includes items such as home furnishings and family heirlooms.
Texas law also protects other property types from being taken to pay judgment creditors. Most creditors will first try to take your bank accounts and other money that they can easily access, but some creditors will also seek to take physical property that they can sell to satisfy judgments.
A judgment creditor is a person or company that has sued and won a case for money damages. A judgment creditor can be someone who won a lawsuit over past-due debts (such as unpaid credit cards, medical bills, etc.), but it can also be someone who won any civil lawsuit that resulted in a judgment for money.
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Texas law protects other property types from being taken to pay judgment creditors
Most creditors will first try to take your bank accounts and other money that they can easily access, but some creditors will also seek to take physical property that they can sell to satisfy judgments. Creditors cannot take some types of property, and if they do, legal action can be taken to recover it.
Claims from mortgage lenders, the IRS, governments who are owed property taxes, and some homeowners associations are limited exceptions to this rule. Additionally, personal property with an aggregate value of $100,000 for a family and $50,000 for a single person is protected. These include items such as home furnishings, including family heirlooms.
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Texas law protects personal property with an aggregate value of $100,000 for a family and $50,000 for a single person
In Texas, up to ten acres of an urban family home, plus improvements, and up to 200 acres in rural areas (100 acres for single adults) are protected, regardless of how much the property is worth. Claims from mortgage lenders, the IRS, governments who are owed property taxes, and some homeowners associations are limited exceptions to this rule.
A judgment creditor is a person or company that has sued and won a case for money damages. A judgment creditor can be someone who won a lawsuit over past-due debts (such as unpaid credit cards, medical bills, etc), but it can also be someone who won any civil lawsuit that resulted in a judgment for money.
Other protected assets include retirement accounts, 529 college savings accounts, life insurance proceeds, and annuities.
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Texas law protects income and benefits from creditors
Texas law protects your homestead from forced sale to pay most debts and judgments. In Texas, up to ten acres of an urban family home, plus improvements, and up to 200 acres in rural areas (100 acres for single adults) are protected, regardless of how much the property is worth. Claims from mortgage lenders, the IRS, governments who are owed property taxes, and some homeowners associations are limited exceptions to this rule. Additionally, personal property with an aggregate value of $100,000 for a family and $50,000 for a single person is protected. These include items such as home furnishings and family heirlooms.
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Texas law protects property from being taken by creditors to pay debt judgments
Texas law protects certain types of property from being taken by creditors to pay debt judgments. This includes up to ten acres of an urban family home, plus improvements, and up to 200 acres in rural areas (100 acres for single adults). Personal property with an aggregate value of $100,000 for a family and $50,000 for a single person is also protected. This includes home furnishings and family heirlooms.
Additionally, Texas law protects other property types from being taken to pay judgment creditors. Most creditors will first try to take money from your bank accounts, but some will also seek to take physical property that they can sell to satisfy judgments. Certain physical property is also protected from being taken by creditors, including one vehicle for each member of the family with a driver's license.
Under Texas law, "current wages" cannot be taken through an employer to pay consumer debts or other types of debts.
If a creditor takes protected property, legal action can be taken to recover it. A judgment creditor is a person or company that has sued and won a case for money damages. This could be someone who won a lawsuit over past-due debts, such as unpaid credit cards or medical bills, or someone who won any civil lawsuit that resulted in a judgment for money.
The Texas Constitution states that a lender may not commence foreclosure until they give written notice by mail that a ground for foreclosure exists and gives the borrower an opportunity to remedy the condition creating the ground for foreclosure or to pay the reverse mortgage debt within the time permitted by Section 50(k) (10), Article XVI, of the Texas Constitution.
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Frequently asked questions
No, the Texas Constitution does not protect mortgage lenders from paying creditors. However, Texas law does protect certain types of property from being taken to pay judgment creditors.
Texas law protects up to ten acres of an urban family home, plus improvements, and up to 200 acres in rural areas (100 acres for single adults) from being taken to pay most debts and judgments. Additionally, personal property with an aggregate value of $100,000 for a family and $50,000 for a single person is protected.
A judgment creditor is a person or company that has sued and won a case for money damages. This could include someone who won a lawsuit over past-due debts, such as unpaid credit cards or medical bills, or someone who won any civil lawsuit that resulted in a judgment for money.
If a creditor takes your protected property, you can take legal action to recover it. Additionally, if you are facing foreclosure, you have certain rights under Texas law. The lender must give you written notice by mail that a ground for foreclosure exists and give you an opportunity to remedy the condition creating the ground for foreclosure or to pay the reverse mortgage debt within the time permitted by Texas law.
