Texas Turnover Order Law

Creditors in Texas have a procedure to collect valid judgments with court assistance in what is known as a "Turnover Order". The Texas Turnover statute is found in Texas Civil Practice and Remedies Code Section 31.002, which states that "[a] judgment creditor is entitled to aid from a court of appropriate jurisdiction through injunction or other means in order to reach property to obtain satisfaction on the judgment if the judgment debtor owns property, including present or future rights to property, that:

1. cannot readily be attached or levied on by ordinary legal process; and
2. is not exempt from attachment, execution, or seizure for the satisfaction of liabilities."

The court may:

1. order the judgment debtor to turn over nonexempt property that is in the debtor's possession or is subject to the debtor's control, together with all documents or records related to the property, to a designated sheriff or constable for execution;
2. otherwise apply the property to the satisfaction of the judgment; or
3. appoint a receiver with the authority to take possession of the nonexempt property, sell it, and pay the proceeds to the judgment creditor to the extent required to satisfy the judgment.

This can obviously be a very powerful tool for a Texas creditor, but it is still limited to non-exempt assets, and does require certain findings by the court, which may be established in post judgment written discovery. Turnover orders have the presumption, however, that assets are non-exempt and it is the debtors' responsibility to show that the assets to be turned over are exempt.

If you have a legal issue related to Turnover Orders, please contact Marc Lippincott for an appointment to discuss.