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Current as of January 01, 2024 | Updated by Findlaw Staff
(a) Notwithstanding the Texas Rules of Civil Procedure, if a financial institution fails to timely file an answer to a writ of garnishment issued before or after a judgment is rendered in the case, a court may enter a default judgment against the financial institution solely as to the existence of liability and not as to the amount of damages.
(b) A financial institution against which a default judgment is entered under Subsection (a) is not deemed to have in the financial institution's possession or to have knowledge of sufficient debts, assets, or personal effects of the debtor to satisfy the debtor's obligations to the garnishor.
(c) After a default judgment is entered against a financial institution as to the existence of liability as provided by Subsection (a), the garnishor has the burden to establish the amount of actual damages proximately caused to the garnishor by the financial institution's default.
(d) The court may award to the garnishor:
(1) damages in the amount determined under Subsection (c); and
(2) for good cause shown, reasonable attorney's fees incurred by the garnishor in establishing damages under Subsection (c).
(e) Notwithstanding Section 22.004, Government Code, the supreme court may not amend or adopt rules in conflict with this section.
Cite this article: FindLaw.com - Texas Finance Code - FIN § 276.002. Garnishment of Financial Institution Account - last updated January 01, 2024 | https://codes.findlaw.com/tx/finance-code/fin-sect-276-002/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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