I have been sued. How to protect my homestead in Texas (foreclose, credit)

[sharyn1950]

Can a creditor, if wins a lawsuit attach a lien against a TX homestead? I am told my farm is homesteaded, but only the acre that the house is on.. the other 7 acres is agriculture exempt, and you can not have both exemptions on the land, either or... How do I protect my farm from an illegal claim ... also, since my business has decreased to such an extent from the economy, would bankrupsy protect my farm.

[derekv]

Homestead (http://www.professorbeyer.com/Articles/Homestead.htm - broken link)

That link provides most of the information you need to know. First off, you are confusing two different homestead terms 1. The homestead exemption for property taxes, you are correct you can't have both the ag exemption and the homestead exeption. 2. The constitutional homestead, which is what is protected from creditors.

These are different things, though the same terminology is used.

Your home and acreage would be protected and immune from judgment b/c of the constitutional homestead. Bankruptcy could be an option, or defend the suit, either way you need to consult an attorney for better advice.

A creditor can file a lien in your county, most title companies will want you to pay this off when selling your home, however, the creditor can't foreclose on the lien against your homestead property.