Bank filed & recd judgement in 1989 or early 1990 for a 1986 transaction. Original bank no longer exists. The bank changed owners and name in 1996. The only thing I have is my homestead, can they collect after this length of time if I sell or die and leave it to my children?

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Originally Posted by ctg

Bank filed & recd judgement in 1989 or early 1990 for a 1986 transaction. Original bank no longer exists. The bank changed owners and name in 1996. The only thing I have is my homestead, can they collect after this length of time if I sell or die and leave it to my children?

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Texas law: "When a person dies in Texas, his property immediately becomes the property of his heirs. But, the property is first subject to payment of the debts of the deceased. This is true whether the person dies with or without a will.

If you have a judgment against one of the heirs, it immediately attaches to the inherited property. An executor of the deceased person's estate can, however, sell the property free of your lien. But, he can only do so to pay debts of the deceased."

"Even though your lien doesn't attach to the debtor's homestead, it does create a cloud on the debtor's title to his home. In other words, you can make it difficult for the debtor to sell his home because your lien creates a question of ownership.

Because of this "cloud" you must release the lien as to the homestead. You don't have to do it until the debtor asks you to do so. But, if the debtor asks, you have to release it. If you don't, the debtor can sue you for damages.

Limitations Of The Texas Judgment Lien