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Incurring obligations

There are a number of circumstances where a judgment debtor can incur liabilities in a fashion that would decrease your chances of collecting your debt. The Texas Fraudulent Transfer Act makes provision for you to recover in those circumstances. One example of incurring an obligation to avoid judgment creditors is to convert an unsecured obligation into a secured obligation. For instance, if a debtor owes someone money but that debt is unsecured the debtor could give a security interest (a lien for example) to that person to secure the debt. We see this situation quite frequently involving family members.

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