Texas Turnover Relief - When You Assume You've Exhausted All

Texas Turnover Relief - When You Assume You've Exhausted All Your Options!

Ok. You've sent post-judgment interrogatories and deposed your judgment debtor. You've gotten a writ of execution to seize property discovered in the interrogatories and by means of deposition testimony. However, right away you discover that the belongings you thought you could get are not easily seized through these regular post-judgment collection methods. What are you to do?

What you should not do is quit. There is an alternative tool you may make use of after you've exhausted all other methods. It's referred to as "turnover relief." In the interest of full disclosure let me say that you do not really have to delay until you've exhausted all other post-judgment collection methods prior to considering turnover relief. But, it is less difficult to utilize the other techniques first. And, a few courts still require you to obtain a writ of execution and have it returned "nulla bona" before they are going to permit turnover relief. Consequently, the best practice is to at least issue the writ of execution and make the service effort on it first. Subsequent to that, you may move for turnover relief if you so desire.

So, what exactly is "turnover relief?" It is a procedure in which the court orders your judgment debtor to turn over to you, the judgment creditor, all non-exempt assets to satisfy the judgment you own. What the procedure more or less does is place the burden on your judgment debtor to deliver the property to you rather than the burden being on you to locate the property through the normal post-judgment discovery process. However, bear in mind that the court's jurisdiction in this "turnover order" is restricted to nonexempt assets of the judgment debtor that you can't easily attach or levy by means of ordinary legal process. See Texas Civil Practice & Remedies Code Section 31.002(a).

A further very beneficial twist to a turnover order is that the court can appoint a receiver to gather the property. If the court appoints a receiver that person's task is to take possession of the property, sell it and give the proceeds to you until the judgment is satisfied in full. See Texas Civil Practice & Remedies Code Section 31.002(b)(3). Of course, the decision to appoint a receiver is completely within the discretion of the court.

While a turnover order sometimes is an efficient technique to enforce your judgment when all other remedies are unsuccessful, don't get the flawed thought that it will be the key to all your collection problems. It is not. You must understand that the turnover order is only available to get your judgment debtor's nonexempt property. Like with a writ of execution there is property which is exempt from a turnover order. But, there is also plenty of property that is subject to a turnover order.