In Texas, creditors cannot force the sale of your primary homestead, since the Texas Constitution shields unlimited equity on up to 10 urban acres (100 rural; 200 for families). However, they may record a judgment lien that you must clear before refinancing or selling.
Quick Answer: How do I protect my home if someone sues me in Texas?
At Warren & Migliaccio, we recommend claiming and recording your homestead exemption immediately, filing a homestead affidavit, and challenging any judgment lien to keep your home protected.
- Claim your homestead exemption by recording a homestead affidavit with the county clerk immediately.
- File a new-trial motion or appeal within 30 days to challenge judgments.
- Remove judgment liens under Tex. Prop. Code §52.006 before refinancing.
Key Takeaways
- Judgment creditors cannot force the sale of your primary homestead but may file a lien that must be cleared before refinancing or selling.
- Claim your homestead exemption by recording a homestead affidavit with the county clerk immediately.
- File a new-trial motion or appeal within 30 days to challenge any judgment.
- Remove judgment liens under Tex. Prop. Code §52.006 before refinancing.
“You just got served…will you lose the roof over your children’s heads?” We understand that fear. Legal action, such as lawsuits, can put houses and other assets at risk, but there are ways to protect your home under Texas and your state’s laws. We have defended families across Texas for nearly 20 years, bringing our experience to every debt-collection lawsuit.
Understanding Judgment Creditors in Texas
A judgment creditor is any party that wins a civil lawsuit for money damages and receives a court order confirming what you owe.
Lawsuit ➜ judgment (default or after trial) ➜ creditor gains collection powers. If you are sued and lose a lawsuit, your opponent can request a judgment against you, which may lead to further collection actions. Being sued, especially in a personal injury lawsuit, can result in a court battle that puts your assets at risk.
Statute of limitations: Judgments become dormant after 10 years but can be revived multiple times, potentially extending enforcement indefinitely (Tex. Civ. Prac. & Rem. Code §34.001).
Typical judgment creditors
- Credit card companies
- Hospitals and medical providers
- Personal injury lawsuit plaintiffs
- Government entities for unpaid taxes
What Happens After a Default Judgment?
You have only 30 days to file a motion for new trial or notice of appeal. If you miss the window, expect:
- Bank-account levy – funds frozen and seized by court order
- Wage garnishment – rare for consumer debt in Texas, but allowed for child support, taxes, and federal student loans. Many types of income, such as Social Security or disability benefits, are exempt from garnishment. Most states, however, allow creditors to garnish wages to collect debts resulting from personal judgments.
- Judgment lien – creditor files an abstract of judgment to cloud your real-property title
Debt collectors may pursue paying the judgment by seizing valuable assets, valuable property, or even household goods. However, if you are judgment proof, they may not be able to collect from you.
Early action preserves defenses and keeps assets safe.
The Texas Homestead Exemption: Your Primary Shield
Authority: Tex. Const. art. XVI, §50; Tex. Prop. Code §41.001.
- Urban homestead: up to 10 contiguous acres.
- Rural homestead: up to 100 acres (200 for families).
- Equity protection: Unlimited – no dollar cap on value. Most states only protect a certain amount or exemption amount of equity in a primary residence, but Texas protects a significant amount—there is no limit.
- Married couples may claim only one primary residence unless living apart under limited statutory circumstances (Tex. Prop. Code §41.002 and related case law).
Three-step protection flow-chart
- Firstly, qualify – Live in the property as your primary residence.
- Also, file – Record a homestead affidavit if county tax rolls do not already show the exemption.
- Similarly, record Notice – Place the affidavit with the county clerk so creditors receive formal notice.
- State laws vary, so check your state’s laws to determine the exemption amount and whether you have enough equity at risk.
Case Study: Safeguarding a Widow’s Home with Homestead Exemption
I recently met a widowed mother of two who was overwhelmed and scared. A debt collector had secured a default judgment on her credit card balance and warned they could “take the house”—the only home her children knew.
I immediately explained Texas’s homestead exemption and filed a homestead affidavit with the county clerk. I then served notice on the judgment creditor and filed a motion for new trial to challenge the default judgment. While those steps were pending, I negotiated a payment plan focused on her personal property instead of risking the homestead.
Because the property was already designated as a homestead, the creditor’s lien could not attach, and they agreed to dismiss enforcement against the house. The client regained peace of mind and kept her residence.
Takeaway: Filing a homestead affidavit and acting swiftly can shield your primary residence from creditor claims—protect your home before it’s threatened.
Judgment Liens: When a Creditor Clouds Your Title
A judgment lien attaches when the creditor files an abstract of judgment in the county where your home sits. As the owner, you are responsible for clearing the lien, which may involve paying a small fee to file the necessary documents. Under Tex. Prop. Code §52.006 the lien lasts 10 years and can be extended by reviving the judgment and refiling.
Lien ≠ Forced Sale – The creditor cannot make you leave, but the lien must be cleared before you can refinance or sell.
Removal checklist
- Negotiate a release of lien or settle the debt.
- File a §52.0012 affidavit to remove an invalid lien on a homestead.
- Bankruptcy lien-avoidance – In Chapter 7, use 11 U.S.C. §522(f) to strip non-purchase-money judgment liens.
(Related: Removing a Judgment Lien Before Closing on a Home)
Exceptions That Can Reach Your Home
Protected Debts | Vulnerable Debts |
|---|---|
Credit card, medical, personal loans | Mortgage or property-tax foreclosure |
Most unsecured judgments | HOA assessments, mechanics’ liens |
Business debts | Federal tax liens – Benchmark Bank v. Crowder, 919 S.W.2d 657 (Tex. 1996) |
Even strong homestead rules yield to federal law and certain priority claims. Insurance policies and insurance companies may be involved in claims against your home or other personal assets, and other assets beyond your home may also be at risk in certain situations.
Asset-Protection Strategies Beyond the Homestead
- Umbrella liability insurance – Adds coverage above home & auto limits.
- LLC ownership – Place rental or investment property inside a limited-liability company to provide liability protection for those assets. LLCs can provide liability protection for properties owned under them in most states.
- Domestic Asset-Protection Trusts – States like South Dakota offer strong trusts. Offshore trusts in places like the Cook Islands need expert legal help. An asset protection trust can be a key part of a comprehensive asset protection plan to protect your home and liquid assets from creditors by transferring ownership outside of your direct control.
- Strategic refinancing – You can pull cash out of your home before a lawsuit, but be careful of “fraudulent transfer” rules. These rules have “look-back” periods of about four years that allow courts to reverse the transaction (Tex. Bus. & Com. Code § 24.010(a)).
- Document exempt income – Keep clear records of Social Security, disability, and veteran benefits that remain off-limits.
Thus, if you are interested in setting up an asset protection plan to protect your home and liquid assets, contact our office for professional assistance.
Warning: Moving assets after a lawsuit starts can be reversed as a fraudulent transfer.
Bankruptcy: Fresh Start or Last Resort?
| Pros | Cons |
|---|---|
| Stops all collections immediately (automatic stay) | Credit report impact (7–10 years) |
| Discharges most unsecured debts | Legal fees, court oversight |
| Can strip judgment liens from homestead | Financial disclosures required |
| Protects exempt assets using Texas or federal exemptions | Not all debts dischargeable |
Chapter 7: Combine discharge with §522(f) lien-avoidance motions.
Chapter 13: 3–5-year repayment plan can cure mortgage arrears and remove certain non-purchase-money liens. Additionally, you can propose a plan to catch up on unpaid mortgage payments over 60 months, providing a structured path to financial recovery. Paying through a bankruptcy case can also help protect awards from a personal injury case from creditors, ensuring these funds remain exempt.
Unsure which route fits? Call (888) 584-9614 for a free bankruptcy evaluation.
Case Study: Bexar Appraisal District v. Johnson – Homestead Rights Upheld
On June 7, 2024 the Texas Supreme Court held that a 100 percent disabled Air Force veteran could claim the disabled-veteran homestead tax exemption on her Converse home even though her estranged spouse claimed the same exemption on another residence. The Court ruled that Tex. Tax Code §11.131(b) grants the benefit to each qualifying individual, not per family unit, confirming that homestead protections attach personally. This tax exemption case strengthens individual rights, which may inform broader homestead interpretations for separated couples. The decision offers guidance for military and medically separated families. Source: Texas Supreme Court opinion No. 22-0485.
Frequently Asked Questions About If Someone Sues You, Can They Take Your House in Texas?
Can a creditor take your house in Texas?
What is a homestead exemption in Texas?
How do you remove a judgment lien from a Texas homestead?
1. §52.0012 Affidavit – record proof the property is a homestead; the affidavit acts as a release if the creditor does not file a contradicting affidavit within 30 days.
2. Negotiate & obtain a written release from the creditor.
3. Chapter 7 bankruptcy – file a §522(f) motion to avoid the lien.
We evaluate which option clears title fastest.
How long does a judgment lien last in Texas?
What debts can force me to lose my home in Texas?
1. Firstly, purchase-money mortgages or home-equity loans
2. Also, property-tax and federal tax liens
3. Likewise, HOA assessments and mechanic’s liens
As the owner, you are responsible for paying these debts to avoid foreclosure.
Unsecured debts (credit cards, medical bills, personal loans) cannot trigger foreclosure. Child or spousal support arrears cannot force a sale of your homestead, though other enforcement methods apply.
Can I keep my house if I file Chapter 7 bankruptcy in Texas?
What assets are protected from creditors in Texas?
Firstly, homestead (unlimited equity)
Secondly, personal property up to $50,000 ($100,000 for families)
Likewise, one vehicle per licensed household member
Also, retirement accounts & most life-insurance cash values
Similarly, certain tools of the trade and college savings plans
In addition, personal assets, household goods, and other assets may also be protected under Texas law, depending on the specific exemptions that apply.
Can medical debt take your house in Texas?
What’s the difference between a judgment and a lien?
The process for recording and enforcing liens is governed by state laws, which determine what property can be seized and outline local legal protections and exemptions.
How do I protect my house from a lawsuit in Texas?
1. Firstly, record a homestead affidavit.
2. Secondly, maintain liability insurance and keep mortgage and taxes current.
Consult us quickly if you are served—timely responses preserve defenses and prevent default judgments that spawn liens. To qualify for the homestead exemption, the property must be the homeowner’s primary residence, and there may be residency duration requirements in some states.
Developing an asset protection plan is a proactive way to protect your assets from lawsuits.
Can federal tax liens override Texas homestead protection?
Will moving equity into a new homestead within six months keep it safe?
Conclusion & Next Steps
Texas offers some of the strongest homestead protections in the nation, but judgment liens, tax issues, and support arrears can still threaten your peace of mind. Swift, informed action is the key to keeping your home and regaining control of your finances.
Call Warren & Migliaccio at (888) 584-9614 or contact us online to schedule your free consultation. Our debt lawsuit defense attorneys help families statewide protect what matters most and chart a clear path toward a fresh financial start.
Disclaimer: This article provides general information and is not legal advice. Hiring a lawyer is an important decision that should not be based solely on advertising. Consult our attorneys to receive advice tailored to your circumstances.
