Do you have a judgment that hasn’t been satisfied through the use of a writ of execution?
A turnover receivership is an effective tool in the collection of judgments in Texas.
Key aspects of the turnover statute are:
- Provides for the appointment of a receiver to take control of and liquidate the debtor’s non-exempt assets to satisfy the judgment.
- Debtor has the burden of establishing which assets are exempt.
- Examples of non-exempt assets are:
- Money held in bank accounts, with certain narrow exceptions;
- Cause(s) of action against third parties;
- Contractual rights;
- Accounts receivable;
- Property located outside of Texas;
- Interest in corporations, limited liability companies, partnerships, etc.;
- Property held by a probate administrator or other third party;
- Intellectual property rights such as internet domains, patents, copyrights and trademarks; and
- Property not otherwise exempted by the Texas Property Code.
- Receiver’s fees are at no cost to the debtor. Receiver fees are usually set at a percentage of all amounts collected and are in addition to the amount due the creditor. For example, if the Receiver’s fee is 25%, the Receiver levies and liquidates assets equaling 125% of the judgment amount.
- Unlike a garnishment, the Receiver’s levy on bank accounts remains in perpetuity until the judgment is satisfied.
- Receiver is commonly authorized to:
- to change locks to all premises at which any property is situated;
- direct the delivery of debtor’s mail and the mail of any business of the debtor to the Receiver's address and open all mail directed to debtor and any business of the debtor;
- endorse and cash all checks and negotiable instruments payable to debtor, except paychecks for current wages;
- hire a real estate broker to sell any real property and mineral interest belonging to the debtor;
- hire any person or company to move and store the property of Defendant;
- obtain from any financial institution, bank, credit union, credit bureau, savings and loan, title company, or any other third party, any financial records, including credit reports belonging to or pertaining to the debtor;
- obtain from any landlord, building owner or building manager where the debtor or the debtor’s business is a tenant copies of the debtor’s lease, lease application, credit application, payment history and copies of debtor’s checks for rent or other payments;
- take all action necessary to gain access to all storage facilities, safety-deposit boxes, real property, and leased premises wherein any property of debtor may be situated, and to review and obtain copies of all documents related to same.
- Contempt is a remedy if the debtor disobeys a turnover order.
Call today to explore how Bo Rogers can assist in the collection of your judgment.