Texas Debt Collection Attorney

Debt Collection in Texas

Overview of the Debt Collection Process

The remedies available to a creditor depends on many factors. Is the the debt is secured or unsecured? Was the debt incurred on a government project? Is the creditor entitled to a mechanic's and materialman's lien? Has the creditor already received a judgment? Call our Texas Debt Collection Attorney today to see if we can help you navigate the debt collection process.

Unsecured Debt

If the debt is unsecured (no collateral or lien), the creditor is limited on what they can do. Typically, the creditor will be forces to file a lawsuit against the debtor and the guarantors, if any. The debt collection process will start with a demand letter demanding payment for the unpaid obligation. If the debtor does not pay the debt after the demand letter, a lawsuit is typically the next step unless the creditor has lien or lien rights.

Secured Debt

If the obligation owed to the creditor is secured with collateral, the creditor can generally (1) repossess the collateral/foreclose the lien and/or (2) seek a judgment. Typically, a foreclosure will occur first and a lawsuit is only necessary if the foreclosure sale proceeds are less than the debt. If you are a secured creditor, our Texas Debt Collection Attorney can help you obtain or foreclose a lien and pursue the deficiency judgment, if necessary.

Read more about foreclosures in Texas.

Bonded or Government Projects

If a debt arises from work performed or materials delivered on the government's land, the creditor can typically seek payment from the bond company. The collection process in this instance is unique and requires strict compliance with the law.

Read more about payment bond claims.

Post-Judgment Collection

Securing a judgment is only half the battle. You still need to force the debtor to pay the judgment. There are many additional post-judgment collection strategies available to creditors who have a judgment.

Read more about post-judgment collection strategies.

Enforcing Out of State Judgments

If you have a judgment from a non-Texas court and wish to enforce the judgment in Texas, you must first domesticate the judgment in Texas. If you are thinking about domesticating a judgment in Texas, contact our Texas Debt Collection Attorney to see if it is necessary.

See our full article on enforcing out of state judgments.