Maybe you lost a lawsuit over an old credit card or medical bill years ago. You moved on, but the judgment didn’t. Now you’re wondering how long a judgment lasts, and whether it will ever stop hanging over you. Here is what you should know, and what you can do about it.

A Judgment Lasts Longer Than You Might Think

In Texas, a creditor has 10 years to enforce a judgment. If they don’t take action in that time, the judgment goes dormant under Section 34.001 of the Texas Civil Practice and Remedies Code. That sounds like good news, but dormant doesn’t mean gone. The creditor still has two more years to ask the court to bring it back.

Why Do Old Judgments Keep Coming Back?

Creditors can renew a judgment by getting a new writ before the 10-year deadline, and every renewal restarts the clock. So a judgment you forgot about can surface again when you try to sell property or apply for a loan. Interest keeps adding up the whole time, which means you may owe far more today than the original bill.

What Happens to Your Property?

If a creditor records the judgment in your county, it becomes a lien on real estate you own there. The good news is that your homestead is protected from most judgment liens in Texas. Even so, a lien on other property can make it hard to sell or refinance until the judgment is dealt with.

Can You Get Rid of a Judgment?

You have more options than you may realize.

Settle it: Many creditors will take less than the full amount, especially on older judgments. Always get a written release and make sure it’s recorded.

Challenge it: If you were never properly served with the lawsuit, you may be able to have the judgment set aside. Deadlines are tight, so act quickly.

File for bankruptcy: Settling isn’t always realistic. Bankruptcy may be a better approach if that is not an option.

How Bankruptcy Can Clear a Judgment

A judgment is usually treated like the debt behind it. If it came from a credit card, medical bill or personal loan, you can often discharge a judgment in bankruptcy just like other unsecured debt. Chapter 7 can eliminate judgment debt in a few months, while Chapter 13 gives you a plan to repay what you can afford.

Some debts do stay with you. The U.S. Courts guide to Chapter 7 explains that debts for willful injury and certain fraud claims can’t be discharged. If a judgment lien in bankruptcy cuts into an exemption you’re entitled to, it may be possible to remove it too. Curious what else is protected? Learn what happens to your assets during bankruptcy.

Let’s Talk About Your Judgment

You don’t have to live with a judgment for the next decade. At our office, Joel Gonzalez works as a judgment attorney in Corpus Christi and will review your judgment, any liens attached to it, and whether bankruptcy can clear it for good. Contact us to schedule your consultation.