Using the procedure known as sequestration, a creditor can recover property in which it has a security or title/ownership interest prior to final disposition of its underlying claims against a debtor. The creditor must file a sworn application, based upon personal knowledge, establishing the statutory grounds for sequestration and post a bond in an amount which the court finds will adequately compensate the debtor in the event that the creditor fails to prosecute its claims. A writ of sequestration will only be issued after a hearing before an appropriate court, although that hearing may be held without notice to the debtor in certain circumstances. In addition to the bond amount that must be posted by the creditor, the court's order will include a "replevy bond" amount that must be paid by the debtor if he wishes to regain possession of the property pending the outcome of the creditor's suit.
In Texas, the writ of sequestration will be issued to a sheriff or constable within the State of Texas and commands that officer to take specifically described property into his possession and keep it secure pending further action by the court, unless the property is replevied by the debtor. If the debtor fails to replevy the property within ten days, the creditor may pay the amount of the replevy bond to the officer and obtain immediate possession of the property.
If you have a legal issue related to Sequestration, please contact Marc Lippincott for an appointment to discuss.