Texas Law on SSI and Judgments

Jan 04, 2010

Debt Collection in Texas
by: Gerri

Charmie,

Social Security income is typically protected from creditors in all states, not just in Texas. In addition, in Texas the average homeowner has unlimited homestead protection which means that creditors usually can't go after the equity in your home. (There are some exceptions if you own a large property in town, or quite large rural property.)

Unless you have other assets you aren't mentioning, such as investments held outside a retirement account, you probably are judgment proof. You mention that you have been told you are not a good candidate for bankruptcy. (And if that's all the debt you have, then likely that's true - after all it may cost you several hundred dollars just to file bankruptcy. You could likely settle your debt for a similar amount.)

However, you don't say who gave you that advice. If it was not an attorney, then we recommend you consult a bankruptcy attorney just to make sure you aren't missing anything. The consultation should be free, and you can ask him or her to confirm whether you are judgment proof.

If there is indeed nothing that a collector can go after, then a letter to the collector stating that you have no assets or income to pay the debt, and asking them to stop contacting you, should do the trick. Send your letter certified mail, return receipt and keep a copy for your records.

While we don't recommend Cease Contact letters in all cases, if you have confirmed with an attorney that you are indeed judgment proof, then such a letter may work just fine for you.

If the collector then tried to take you to court to collect (unlikely, but you never know) you could simply go to court and explain the situation to the judge. Or you could hire a consumer law attorney if it came to that. Again, for such a small debt, and given your circumstances, I think it would be unlikely, but of course we must warn that it could always be a possibility.

As always, our advice is meant to be educational, not legal advice, and we do recommend you talk with an attorney to confirm you are judgment proof.

Good luck and please let us know what happens.

Texas Law on SSI and Judgments

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