Legal Question in Business Law in Texas

Home protection

If a business debt is owed to another business(under $2500.00) can a collection agency threaten to take the homestead of the owner of the business? I have a collection agency telling me that they are going to take my home which is owned by myself and an individual not related to the business. They are also trying to make this individual responsible for the debt even though they have no ties to the business.


Asked on 12/05/03, 9:18 am

2 Answers from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Home protection

They can't take your homestead for a business debt in Texas! If the mysterious individual not related to the business is a spouse, then they're liable on a community debt.

Read more
Answered on 12/05/03, 9:46 am
David Leon David L. Leon, P.C.

Re: Home protection

It's very difficult to take a home in Texas, unless the debt has something to do with the home. For example, if the debt was for home improvement (such as to add a home office), or a second mortgage (to finance the business), then they could go after it. As for what to do, document everything, time of call, who you spoke with, their call back number, etc. Save your answering machine messages. There may be violations of applicable debt collection laws.

Read more
Answered on 12/05/03, 9:55 am


Related Questions & Answers

More Business Law questions and answers in Texas