The creditor/lender can file a lawsuit in the appropriate court of the debtor's state. If the creditor wins the suit a judgment will be entered against the debtor. A judgment can be executed against the debtor's nonexempt property/assets including jointly owned marital property and assets, as Texas is a CP state. The state does not allow wage garnishment for creditor judgments but it does allow bank levy, seizure and liquidation of nonexempt property and liens against real property (a forced sale of a primary residence is not allowed). The exemptions that are allowed in bankruptcy are the same ones available to the debtor when defending property against a judgment creditor. In addition, the debtor may be able to use federal non-bankruptcy exemptions to further protect personal and real property from creditor attachment.
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