What Do You Do After You Receive a Money Judgment in Your Favor?

Part One: Abstracting the Judgment

Once you receive a judgment awarding monetary damages, you are able to start post-judgment collection activities. Post-judgment collection activities include, without limitation, (1) recording an abstract of judgment, (2) execution on the judgment, (3) garnishment, (4) turnover, (5) charging order and (6) receivership.

Today, we will focus on abstracting the judgment. Once you have a money judgment, you or your attorney would have the judgment reduced to one page (this is called the “abstract” or “abstract of judgment”) and recorded in each county in which you wish to perfect the judgment lien. A judgment itself does not create a lien.

Recording the abstract of judgment is usually the most simple collection activity as it entails clerical efforts to simply record the abstract in one or more Texas counties. Once the abstract is properly recorded and indexed, the judgment creditor will have a judgment lien on all nonexempt real property (real estate) of the judgment debtor in each Texas county in which the abstract is recorded.

The lien continues for ten years from the date of recording and indexing, as long as the judgment does not become dormant.

For more on Debt Collection in Texas: Debt Collection Law Firm