Some assets are difficult or impossible to reach through a standard writ of execution. Business interests, intellectual property, contractual rights, and other intangible property may not be subject to seizure by a constable or sheriff. For these situations, Texas law provides two additional post-judgment enforcement tools: turnover orders and receivership.

What is a turnover order?

A turnover order is a court order directing a judgment debtor to turn over nonexempt property to a designated officer for application toward the judgment. The turnover statute has been applied to a wide range of assets, including business interests, accounts receivable, contractual rights, stock and membership interests.

How a turnover proceeding works

The judgment creditor files an application in the court that rendered the judgment or in the county where the debtor resides. If the court grants the application, it issues an order directing the debtor to deliver the property. Failure to comply can result in contempt of court.

What is a receivership?

When a turnover order alone is not sufficient, a court may appoint a receiver to take possession of, manage, and liquidate the debtor’s nonexempt assets. Receivership is particularly useful when the debtor owns a business or has complex financial interests.

Talk with Lone Star Lawyers

If you have a Texas judgment and are struggling to collect, Lone Star Lawyers can evaluate whether turnover relief or receivership may be appropriate in your case. Contact us to schedule a free consultation.

This article provides general information and is not legal advice.