Ok. You’ve sent post-judgment interrogatories and deposed your judgment debtor. You’ve gotten a writ of execution to seize property identified in the interrogatories and through deposition testimony. But, now you discover that the property you thought you could get isn’t easily attached through these ordinary post-judgment collection methods. What are you to do?

What you shouldn’t do is give up. There is another tool you can use when you’ve exhausted all other methods. It’s called “turnover relief.” In the interest of full disclosure let me say that you don’t actually have to wait until you’ve exhausted all other post-judgment collection methods before considering turnover relief. But, it’s generally easier to use the other methods first. And, some courts still require that you get a writ of execution and have it returned “nulla bona” before they will grant you turnover relief. So, the best practice is to at least issue the writ of execution and make the service attempt on it first. After that, you can go for turnover relief if you so desire.

So, what exactly is “turnover relief?” It’s 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 hold. What the procedure essentially does is place the burden on your judgment debtor to produce the property to you rather than the burden being on you to locate the property through the normal post-judgment discovery process. But, keep in mind that the court’s jurisdiction in this “turnover order” is limited to nonexempt property of the judgment debtor that you can’t easily attach or levy through ordinary legal process. See Texas Civil Practice & Remedies Code § 31.002(a).

Another very helpful twist to a turnover order is that the court may appoint a receiver to collect the property. If the court appoints a receiver that person’s job is to to take possession of the property, sell it and pay the proceeds to you until the judgment is satisfied in full. See Texas Civil Practice & Remedies Code § 31.002(b)(3). Of course, the decision to appoint a receiver is fully within the discretion of the court.

While a turnover order can be an effective method of enforcing your judgment when all other remedies are unsuccessful, don’t get the mistaken impression that it’s the solution to all your collection problems. It isn’t. You must understand that the turnover order is only available to get your judgment debtor’s nonexempt property. Just like with a writ of execution there is property that is exempt from a turnover order. But, there is also plenty of property that is subject to a turnover order.

I’ll cover the property exempt from and subject to a turnover order in greater detail in another article. Until then, make sure you utilize all of the post-judgment remedies available to you and explained in my book How to Collect Your Own Judgment in Texas. If you’ve not yet gotten your copy of the book, you can get it today by using the “Add to Cart” button at the top of this page. And, for reading this article, I’ll give you a 20% discount. Just use the code TURNOVER at check out.

The Purpose of Texas Turnover Statutes?

The Texas Turnover Statutes work in tandem with the more common post-judgment discovery devices like Interrogatories in Aid of Judgment, Writs of Execution and Writs of Garnishment.  The statutes are part of the plan that is suppose to help you, the judgment creditor, gain access to your judgment debtor’s property.  Cross, Kieschnick & Co. v. Johnston, 892 S.W.2d 435, 438 (Tex. App.—San Antonio 1994, no writ).  Of course, you want the property so that you can apply it’s value toward payment of your judgment. You can find the actual statutes in §§31.002-.0025, 31.010 of the Texas Civil Practice & Remedies Code.

When You Should Seek Turnover Relief

A turnover proceeding is most useful in those situations where your judgment debtor owns property that you can’t easily seize by the more typical post-judgment procedures of execution or garnishment. So, you should definitely consider filing for turnover relief if you’ve already tried to seize your judgment debtor’s property with a writ of execution or a writ of garnishment. But, you don’t have to pursue any other post-judgment collection method before you apply for a turnover order. Hennigan v. Hennigan, 666 S.W.2d 322, 323 (Tex. App.—Houston [14th Dist.]), writ ref’d n.r.e. per curiam, 677 S.W.2d 495 (Tex. 1984). But, be aware that some courts may require you to get a writ of execution and have it returned nulla bona before considering an application for turnover relief.

Where You File for Turnover Relief

You can file a petition for turnover relief one of two places.  First, you can file it in the same suit in which you obtained the judgment.  Second, you can file it as a new and independent suit.  If you choose to file for a turnover in the same suit in which you got the judgment, the court must have a hearing on your application for turnover relief. Anderson v. Lykes, 761 S.W.2d 831 (Tex. App.—Dallas 1988, no writ).  If you choose to file a independent suit to seek turnover relief, you can file the suit in any court having jurisdiction of the subject matter of your case and jurisdiction over the defendant.

In either a new suit or in the old suit, the court’s jurisdiction in a turnover proceeding is limited to nonexempt property of your judgment debtor that you can’t easily seize by another other post-judgment method.  Tex. Civ. Prac. & Rem. Code §31.002(a); see Hennigan, 666 S.W.2d at 323; Pace v. McEwen, 617 S.W.2d 816, 819 (Tex. Civ. App.—Houston [14th Dist.] 1981, no writ).

Conclusion

Texas Turnover Statutes are a powerful weapon in your judgment collection arsenal.  But, remember that turnover relief is just one weapon among many.  It is effective in its own right.  But, it’s doubly effective when used in conjunction with the more typical post-judgment collection methods of Interrogatories in Aid of Judgment, a Writ of Execution and a Writ of Garnishment.