Federal Court is Fine

Texas collections in federal court intimidates some lawyers. But you cannot be afraid of federal court.

Texas collections in federal court: This is another case where a lawyer obtained a judgment and was then unable to collect the judgment.

In this case the prior lawyer obtained a judgment for unpaid overtime wages against a tow truck company in Dallas Federal court. But navigating collections in federal court is even more complicated than Texas state court.

Frequently, lawyers are able to obtain a judgment in federal court, but collecting judgments in federal court is not something most lawyers have actually had to do.

Once retained, we performed our usual investigation into the debtor. From the documents it was clear the debtor’s only assets worthy of our efforts were the tow trucks and related equipment, like jacks. So we went directly to a motion for turnover ordering the debtor tow truck company to turn over all of their equipment.

the federal judge moved quickly to grant the motion and issued an order for turnover.

One difference in a state court turnover and a turnover in federal court is the level of involvement between a sheriff in state court and a marshal in federal court. In the case the U.S. Marshals were proactive and once they arrived at the debtor’s place of business looking for the tow trucks we were able to settle with the tow truck company on very favorable terms. As you might expect.

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