Texas Debt Collection Laws: A Debtors’ Haven?

Butch Cersonsky,
Cersonsky, Rosen & Garcia, P.C.

Today, The National List published the white paper on debt collection law in Texas, written by M. H. Butch Cersonsky of Cersonsky, Rosen & Garcia, P.C. (CRG). The firm has represented creditors, secured and unsecured, commercial and consumer, for over 30 years. They represent credit unions, medical providers to hospitals and other healthcare facilities. They can handle high volume, i.e., over 5,000 cases for the Department of Justice, or work with small and medium sized creditors, always providing the highest quality of legal representation. The firm works hard to settle cases but is prepared to go to trial, where they excel at post judgment remedies. They have been a member of The National List of Attorneys since 2003. 

Butch attended law school at the University of Houston. He taught creditors rights and remedies at the University of Houston Law School from 1994-2000. He has spoken at collections seminars sponsored by the University of Houston Law School, the State Bar of Texas and the Houston Bar Association. Since 2008, he has been on the Planning Committee and a speaker for the State Bar of Texas Collections and Creditors’ Rights Courses 2009-2012. In 2012 and 2013, he was the Course Director for the State Bar of Texas Collections Course 101, as well as a speaker at the advanced course. In 2014, he will be the Course Director for the Texas State Bar Association’s Advanced Collections and Creditors’ Course.

Butch has been working in the debt collection industry for over 30 years. Ninety percent of his law practice is dedicated to debt collection. One thing that working in debt collection has taught him is “All the unusual twists and excuses debtors can find not to pay a debt or hide their assets.” Perhaps that’s why the thing he enjoys most about his job is “seeing that the Legal System works so that legitimate creditors get paid.”

Butch warns creditors that “Texas is a debtors’ haven.” In his paper he gives much more information about why he thinks this is so. For example, Texas exemptions regarding garnishment and writs of execution are numerous and generous compared to other states. His “quick review” of exemptions includes: Wage Garnishment – Not allowed for creditors, but allowed for child support claims; Bank Garnishment – Allowed, but not as to funds that can be traced to an exempt source, i.e., Social Security or Retirement money; Homesteads –  Generally 100 percent exempt, except for: purchase money liens, mechanic’s and materialman’s liens for work on that property, and taxes; Automobiles – Generally 100 percent exempt from the claims of third-party creditors.

Butch and his wife live in Houston, Texas. He serves as a volunteer Attorney for the Houston Bar Association/ Veterans Legal Initiative. Outside of work he enjoys watching football – professional and college; working out; trips to the mountains/hiking; eating out, and spending time with his family.

The National List thanks Butch for submitting this paper and for telling us something about himself and his firm. You can access the paper at http://www.nationallist.com/white_papers/texas.