What happens with a judgement?

I was just curious how the process of a judgement works? I live in Texas and have some PDL's I have defaulted on. Not that I don't intend to pay...I just can't right now. The main PDL company contacting me now is CashNet USA which is threatning legal action if they don't hear back from me supposedly by tomorrow, that's what the lady told my husband. Several weeks ago I had a message on my answering machine from the same lady (Emily) saying that if she didn't hear back from me by noon the next day she would be filing with an attorney or some crap. Well, guess what...I didn't call and so far...nothing (knock on wood). But I read in another post that in the state of Texas they cannot garnish my wages. Is that true? What can they do then...just a judgement? How does having a judgement against you work? I supposedly owe $867 on a $550 loan but "Emily" said she could probably get that reduced. I am not sure if I should call and see what she says or not. I could take out a loan with Security Finance where I have an existing loan that I only have one more payment on! YAHOO! I could refinance it...which is what I have done for years and this is the first time I am actually this close to getting it paid for. So, obviously I don't want to have to renew that loan. It is just a possibility if I have to. I could renew today for about $600. I currently pay $117/mo on a loan that was financed for 7 months. I have always had to renew and I was hoping this time I wouldn't have to renew it and then I could start using the $117 a month to pay off other debts.

I also (stupidly) set up pmt arrangements with Ameriloan for $94.68/mo for 4 months to pay them off....then I find out they are ILLEGAL. I shouldn't have ever given my bank acct info over the phone either so I am kicking myself big time for that. I hate to have to close my account, I just opened it in March and I really like it. Sorry this got so long. I'm just looking for a decent way to get out of this mess without causing myself more money than I have to pay. I'm also trying to improve my credit score. If I would have had a decent score to begin with I wouldn't have had to take out these stupid PDL's when we got into a bind. I'm now trying to live the Dave Ramsey way and get myself out of debt and will hopefully be able to build up enough savings that I won't ever have to get a "loan" again! Other than for a house or vehicle of course.