HOUSTON CONSUMER LAW ATTORNEY

Texas has some of the most favorable laws regarding a debtor’s exemption of property of any state. One of the most important exemptions used by debtors in Texas to protect property against judgment creditors is the Texas Homestead Exemption. [See Tex. Const. Art. XVI, Sec. 50]. Section 41.002 of the Texas Property Code provides the definition of a “homestead”. A homestead is protected from forced sale by a judgment creditor for the nonpayment of debts, with the exception of purchase money lien, taxes on the property, work and material used in the construction of improvements to the property, an owelty of partition ordered by a court, refinance loan against the homestead, home equity loan, or a reverse mortgage against the homestead. [See Tex. Prop. Code, Sec. 41.001].

Although a judgment creditor may attach a valid lien against the homestead, the judgment debtor/homestead owner can file an affidavit in the real property records in the county where the homestead is located and have the judgment lien released as to the homestead. [See Tex. Prop. Code, Sec. 52.0012]. In addition, a consumer can file and record property as a voluntary designation of homestead with county clerk in the county in which all or part of property lies. [See Tex. Prop. Code, Sec. 41.005].

Homestead rights can not be transferred by will or intestacy. In addition, the homestead exemption expires upon the death of the debtor(s) asserting the homestead rights. Thus, a judgment creditor can attempt to collect against the property upon the death of debtor(s) who had the homestead exemption rights.

Administrator Consumer Law, Judgments Judgments