Garnishment
A post-judgment collection device by which a judgment creditor reaches the judgment debtor's property held by a third party (the garnishee), most commonly bank accounts and accounts receivable. Texas garnishment is governed by Tex. R. Civ. P. 657-679 and Tex. Civ. Prac. & Rem. Code Ch. 63. Wage garnishment for ordinary debts is unconstitutional under Texas law (Tex. Const. art. XVI § 28), with narrow exceptions for child support, taxes, and student loans.
Garnishment is a post-judgment collection device by which a judgment creditor reaches property of the judgment debtor that is in the possession of a third party (the "garnishee"). The most common targets are bank accounts (held by the debtor's bank) and accounts receivable (held by the debtor's customers). Texas is the most restrictive state on wage garnishment, the Texas Constitution (Article XVI, Section 28) prohibits wage garnishment for ordinary debts, with narrow exceptions for child support, federal taxes, and federal student loans.
Pre-judgment vs. post-judgment garnishment
Texas allows both pre-judgment and post-judgment garnishment, with different prerequisites: (1) pre-judgment requires a sworn affidavit showing the debt is just, due, and unpaid; the defendant has not, within the creditor's knowledge, sufficient property within the state subject to execution; and the garnishment is not sought to injure the defendant or garnishee. Pre-judgment garnishment requires a bond. (2) Post-judgment requires a final, valid, subsisting judgment, a bond is not required for post-judgment garnishment, and the procedural showing is simpler. Most commercial garnishment is post-judgment.
The constitutional wage prohibition
Tex. Const. art. XVI, § 28 provides: "No current wages for personal service shall ever be subject to garnishment, except for the enforcement of court-ordered child support payments." This is the most lender-unfriendly garnishment regime in the United States. Federal exceptions exist for: (1) child support (mandatory under federal law); (2) federal income tax obligations; (3) federal student loans; (4) federal court-ordered restitution. State income tax, not applicable to Texas residents on Texas wages, since Texas has no income tax. Wages "currently due" are protected; once paid into a bank account, the funds become subject to garnishment as bank deposits (with exemption-tracing complications).
Bank account garnishment
Bank account garnishment is the workhorse of Texas commercial collection. The judgment creditor: (1) files a sworn application identifying the judgment, the debtor, and the bank as garnishee; (2) the court issues a writ of garnishment served on the bank; (3) upon service, the bank freezes the debtor's account up to the judgment amount; (4) the bank files an answer disclosing the account balance and any claimed exemptions; (5) the court enters judgment against the bank for the disclosed funds (less exemptions). The frozen funds are paid to the creditor in satisfaction or partial satisfaction of the underlying judgment.
Accounts receivable garnishment
Accounts receivable garnishment reaches amounts owed to the debtor by its customers. Procedurally similar to bank garnishment, but the customer must determine and disclose what amounts are owed. Effective for capturing in-flight payment obligations, but typically reaches only specific identifiable receivables, not future amounts that will become owing. Sophisticated debtors can drain receivables through accelerated billing or factoring before garnishment service; speed matters.
Exemptions and traceability
Garnished funds remain subject to property-exemption claims under Tex. Prop. Code Ch. 42, homestead, retirement accounts, and other statutory categories. The debtor must affirmatively claim exemptions; failure to claim waives them. Exemption tracing on bank accounts is complex: funds deposited from exempt sources (Social Security, retirement) retain their exempt status if traceable, but commingling with non-exempt funds creates evidentiary disputes. Wage funds in bank accounts may also retain their constitutional protection under some Texas case law for a period after deposit, though the doctrine is narrow.
Multi-state considerations
For interstate enforcement, the judgment creditor typically domesticates the foreign judgment under the Texas Uniform Enforcement of Foreign Judgments Act (Tex. Civ. Prac. & Rem. Code Ch. 35) before garnishing Texas-located assets. Out-of-state debtor with Texas bank accounts: the garnishment must be issued in Texas, served on the Texas bank branch. Out-of-state bank accounts are reached through garnishment in the bank's home state.
For Texas judgment creditors, garnishment is among the most effective collection tools, particularly when the debtor maintains accounts at known commercial banks. Best practice: (1) identify bank relationships through subpoenas of payment records, asset disclosure orders, or third-party investigations; (2) move quickly, sophisticated debtors will move funds upon learning of impending garnishment; (3) name multiple banks where bank relationships are uncertain; (4) prepare for exemption claims and tracing disputes; (5) coordinate garnishment with turnover and other post-judgment collection tools. For debtors, the constitutional wage protection is a meaningful asset preservation feature, Texas remains an attractive jurisdiction for individuals with substantial wage income facing creditor pressure, although bank-deposit captures partially erode the protection.