Hello,

First of all I live in Texas and have unpaid credit card debt that I probably eventually be sued for. The SOL has not been reached. I have done research, and understand that my wages cannot be garnished in Texas. I understand that a lien can be placed against my home, but Texas has 100% homestead protection(What does that exactly mean?). What I do want to know is can my bank account be "seized" and if so how many times can the same creditor do this? I have read conflicting threads on this matter, and Can anything else be touched such as two owned primary vehicles not worth more that $7,000 a piece? After seven years of non payment do these come off your credit report? Also any advice would be helpful as I pretty much live paycheck to paycheck and have no real possible way of ever paying off these debts. Thank you so much!

I'm not sure why you feel that your wages can't be garnished; the only time that's true is if a garnishment would put your income below the federal poverty limit.

Yes, if they sue you and win, they can a) place a lien on your property or b) "freeze" your bank accounts and garnish anything that's in them. They can garnish your accounts until your debt is paid; a lien will stay on your property until it is paid which means you can't sell your home until you first pay off that lien.

First, under the Texas Homestead laws, your cars, house, and possessions are protected, as well as your paycheck (garnishing). However, if they do win a judgment against you they can legally begin withdrawing money from every bank account they find (and they will hire companies that specialize in this - they will find them... ).

Secondly, yes, after 7 years this nasty-ness will be removed from your credit history (or sooner).

This other poster apparently was only looking at his own state laws in conjunction with federal law and not Texas law which is the strictest in the nation with regards to what collectors can do (regarding BOTH collection practices and civil judgments)

If you really feel you're going to be sued, turn-off direct deposit and close your account. Cash your (paper) checks... Move your savings elsewhere - buy foreign bonds...

Keep researching and take a breather - things are not as bad as I'm sure your feeling right now.

Homestead Protection means that your primary residence and certain assets are protected from unsecured debt.

You are correct that Texas is one of the few states that does not allow garnishment of wages except for government debt and child support.

And while the account may come off your credit report after 7 years, it could be put back on by new collection activity. Plus, your obligation to pay the debt NEVER expires.

Once the creditor obtains a judgement, that judgement can remain in effect for a long time. Possibly 20 years or more. So, while you may not have attachable assets now, you may in the future.

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Originally Posted by ScottGem

And while the account may come off your credit report after 7 years, it could be put back on by new collection activity. Plus, your obligation to pay the debt NEVER expires.

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No, the sol in Texas is 4 years. Between the 4-7 year mark, if an attempt is made to collect and is placed on your credit report (as an additional nasty-gram), you have the right to challenge it. If it legally can not be collected, it must be removed. Thus, the original flame stands, and expires after 7 years.

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Originally Posted by m28gp

No, the sol in Texas is 4 years. Between the 4-7 year mark, if an attempt is made to collect and is placed on your credit report (as an additional nasty-gram), you have the right to challenge it. If it legally can not be collected, it must be removed. Thus, the original flame stands, and expires after 7 years.

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Let me clarify. I was assuming that a judgement was going to be obtained. I agree with you, that if no legal action was initated prior to the expiration of the SOL, then it wouldn't be allowed to be rentered unless the creditor reopened the account by making payment. But if a judgement was obtained, the creditor could resubmit it by attaching some assets.

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Originally Posted by ScottGem

wouldn't be allowed to be reentered unless the creditor reopened the account by making payment.

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I can agree to that also... I would also add that by challenging a debt can also reset all of these deadlines. Once the collector 'verifies' the debt, everything starts over.

I would advise the OP to verify the debt now, and if invalid - fight it. Otherwise, pay it or never deal with it again in any way.

Given Texas law is so strict, the odd's of being sued are minimal if it's only a few thousand since collection agencies know they really can't enforce a judgment in any way.

If the OP is smart and studies the law well, and records the calls, over the next few years he should be able to make back the value of his/her debt since collection agencies almost never follow the law. There is a $500 value per infraction - the double rings when calling, calling your place of employment after told not too, etc... Oh, then there are the bottom feeders that pretend to be lawyers (note (bluntness) - no lawyer spent the time and money to work in a call center) (hint hint).

So if a Lien is placed on my home in Texas, can the property be sold? With the primary mortgage holder getting their money first and then whatever may be left over going to creditors.

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Originally Posted by Drowning75

So if a Lien is placed on my home in texas, can the property be sold? with the primary mortgage holder getting their money first and then whatever may be left over going to creditors.

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The point is, that under the Homestead law a lien CANNOT be placed against a primary residence for unsecured debt.

However, the nature of a lien is that it must be satisifed before a property can be transferred.

So I take it that unless I am served with papers from a constable or some type of law enforcement, that a summary from a collection agency is bogus and a scare tactic. BTW Thank you all for all GREAT answers!

Well you need to be careful. It possible that a suit was filed and service was fudged. So if you get anything that lists a court and docket number you need to verify it.

Otherwise you can respod asking for verification of the debt.

So is it possible to open an offshore account that cannot be seized. I am trying to find an alternative to not being able to bank, because of my checking account being seized or frozen.