Is wage garnishment still illegal in Texas for judgment-creditors to try to collect judgments for debt?

Yes, but the next best thing for judgment-creditors is what as known as a "turnover receivership." This is an "extraordinary remedy" available to judgment-creditors in Texas. This allows them to seize things like cash, money in a bank account, stock that you own in your own company or in other companies, accounts receivable, and even property located outside of the State of Texas.

If you have a judgment against you in Texas, it is no longer safe for you to just assume that everything is going to be OK. Once your wages are put into a bank account, they are no longer considered to be wages, and a court-appointed receiver can have the bank seize the money, and send it to them through the use of the Turnover Statute. TEX. CIV. PRAC. & REM. CODE § 31.002 (a).

Here in the Houston metropolitan area, one legal firm that is very familiar with these turnover receiverships to collect judgments is Jon Malone LTD. The lawyer at the firm is Jon Malone.

If you have a judgment against you and Jon Malone is the receiver, I recommend that you make an appointment with my office or another experienced debt relief attorney, right away. If you have a competent and aggressive debt collection law firm coming after you to collect a judgment, they can make your life very difficult, if not impossible, until the situation is resolved somehow.

We'll explore all of your available options with you to resolve your debt problems, at no charge during your first consultation with our firm. You may need to file bankruptcy, or you may have other options, depending on the facts of your case. We only want what is best for you, in your situation. We'll make sure that you have all the information that you need, to make an informed decision about what is the best option for you.

To find out your options to get a turnover receivership stopped, call our office anytime, 24/7 at 713-772-8037 . For more information about it, an instant download of our Special Report, "How To Deal with Texas Debt Collection Lawsuits! 7 Mistakes That Can Cost You a Lot," is available on this website. Or, just call the office and we will put one in the mail to you.

Do you think these turnover receiverships should be legal in Texas? Why or why not? If not, do you think wage garnishment should be allowed? They have it in most states...they can take up to 25% of your paycheck. If not, how should people be allowed to collect judgments? Any ideas? Please leave your comments below. Thanks!

J Thomas Black
Connect with me
Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization
My daughter bank account has been garnished by Pratt and Malone which is no longer partners. No one answer the phone. Is it humane to deny one to earn a living and not provide the essentials of shelter and food? I am appalled that money owed can be more important to one to live!
by Vanessa May February 17, 2016 at 12:17 PM
"Money in the Bank is Generally Free Game" What Tom the Bankruptcy Lawyer neglected to mention to you who might have judgments outstanding against you is that when exempt money, like your wages, is deposited into a bank account it loses its exemption. In Texas, when current wages are paid to and received by the wage earner and deposited into a bank account, they thereby cease to be current wages, and the exemption statute no longer applies. Schultz v. Cadle Co., 825 S.W.2d 151-153-54 (Tex.App.–Dallas 1992, writ denied) The notation "writ denied' means the law is the Supreme law in Texas as promulgated by the Supreme Court of Texas.. A judgment debtor, having taken his wages and voluntarily placed them in a bank, has thereby created the relation of debtor and creditor between himself and the bank, and caused the funds to be subject to garnishment. Id. This rule applies even if the wages are directly deposited in the Judgment Debtor’s bank account electronically. Fitzpatrick v. Leasecomm Corp., No. 12-07-00487-CV (TXCA12). The fact is it is the judgment creditor, having won his judgment who is the victim because it is he who was not paid by the wage earner. Alexander Hamilton explained most eloquently the reason for non-payment by one indebted to another and I shall share it here for the benefit of Mr. Tom and his legion of victims of their own stupidity: “[D]elinquencies in payments on the part of some... would result from a diversity of other causes—the real deficiency of resources; the mismanagement of their finances; accidental disorders...; and, in addition to the rest, the reluctance with which men commonly part with money for purposes that have outlived the exigencies which produced them, and interfere with the supply of immediate wants.” Federalist Number 7 For the Independent Journal. Thursday, November 15, 1787 ALEXANDER HAMILTON So you go right on preaching your gospel Mr. Tom, and I'll keep freezing those accounts as fast as I can get them frozen. Your clients will need free consultations with you because they will be short on cash when they come to seek some of that good advice you give, like this blog post. Roll on old sport.
by Peter Pratt January 14, 2014 at 11:36 PM
Post a Comment