Debt judgment in Texas? Here’s what assets remain protected.

Q: What assets are protected from seizure by collection agencies that have purchased a person’s unsecured outstanding credit card debt if they are awarded a judgment by the courts? Are retirement accounts, pensions, second homes, stocks, Health Savings Accounts and wages protected?

A: Under Texas law, your homestead, life insurance, annuities, certain personal property (up to $50,000 for a single adult, and $100,000 if married), HSAs, and 529 college savings accounts are fully protected from a judgment for an unsecured debt. Under both Texas and federal law, retirement accounts, qualified plans, and most pensions are exempt from creditors as well.

There are exceptions that might apply to other types of debts, such as mortgages, taxes........

© Houston Chronicle