Appointing a Receiver – Collecting Judgments in Texas


At this point in the process, the debtor has had plenty of opportunity to pay the judgment handed down by the court, yet time and time again they’ve chosen to ignore the phone calls and repeated requests for information. Now, they’re going to have to pay the consequences.

You Can Run, but You Can’t Hide

Once it became clear you’d need to take things a step further, you went to court and filed a Motion for Contempt, which may have caused the debtor to be placed under arrest. It’s also possible you filed a Motion for Turnover, which required the debtor to turn over non-exempt assets to the court, which are then sold off to satisfy the judgment.

In some cases, a receiver will be appointed by the court to help facilitate this. Receivers are paid a percentage of the assets they collect, so they’re typically used only in larger cases. That fee won’t change the amount of the judgment handed down by the court, but it does reduce the assets that are available to collect. If the case is small, appointing a receiver doesn’t make a lot of sense. However, if we see the debtor driving sports cars and wearing fur coats, appointing a receiver makes all the sense in the world. It’s always possible the debtor hasn’t been entirely truthful about their financial situation, and those individuals tend to throw up more than a few red flags.

You Have The Assets, Now What?

Once the receiver has collected the debtor’s assets, they’re turned over to a creditor and put up for auction. The courts are much more amenable to the appointment of a receiver now than they have been in years past. And they’ve become a valuable tool in compelling debtors to meet their obligations.

Collecting Judgments in Texas is a multipart series offered by attorney Darrell W. Cook. Mr. Cook is one of the foremost experts in Texas on maximizing wealth through the efficient collection of outstanding debts. He’s particularly expert in the art and science of collecting money owed following the issuance of a legally enforceable court judgment.

To learn more about collecting judgments and debts, and to read some pretty interesting and sometimes bizarre stories, follow us on LinkedIn and check out our collections blog here.

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