Getting Started
When should a business hire a collections lawyer instead of continuing internal collections?
The short answer: sooner than most businesses think. Internal collections works until it doesn't — and the longer an account goes unpaid, the harder recovery becomes. Once a debtor stops responding, changes address, moves assets, or contests the debt, the window for straightforward collection narrows. A collections lawyer can pursue tools that internal staff cannot: litigation, post-judgment discovery, turnover orders, and asset enforcement. If your internal team has hit a wall, that is usually the right moment to call.
See: Getting Started
What information does a collections lawyer need upfront?
At minimum: the debtor's full legal name and any known addresses, the amount owed, the basis for the debt (contract, invoice, purchase order), any written agreements, a history of communications, and any payments already made. If you have a judgment, bring the judgment document and the case number. The more complete your file, the faster the evaluation.
See: Getting Started
What is the biggest mistake businesses make before hiring a collections lawyer?
Waiting. Delay is the most consistent factor that reduces recovery. Debtors move assets. Bank accounts change. Businesses dissolve. Witnesses become harder to reach. Every week of inaction is a week the debtor's situation can deteriorate or restructure in ways that reduce what you can collect. The firm's experience is that earlier involvement — even before suit — consistently produces better results.
Costs and the Collection Process
How does the collections process work at Cook Keith & Davis?
The firm uses a developed system designed to move matters efficiently from intake through resolution. That system allows the firm to handle collections at a lower cost than general practice firms that handle debt collection occasionally. The process typically begins with a matter evaluation, followed by a demand phase, and — where necessary — litigation and post-judgment enforcement. Each step is calibrated to the facts of the specific matter.
What does it cost to hire a collections lawyer?
Fee structures in collections matters vary depending on the size of the debt, whether litigation is required, and the complexity of enforcement. Cook Keith & Davis's developed system is designed to keep costs lower than comparable representation. Contact the firm directly for a matter-specific discussion of fees.
See: Getting Started
Judgments and Enforcement
I already have a judgment. Isn't that enough?
A judgment is a legal finding that you are owed money — it is not payment. Collecting on a judgment requires a separate enforcement effort: locating assets, serving writs, using post-judgment discovery, obtaining turnover orders, and in some cases registering the judgment in another state. Many creditors are surprised to learn how much work remains after they win in court. Judgment enforcement is a distinct skill set.
How do you collect on a Texas judgment?
Texas provides several enforcement mechanisms. Common tools include: a writ of execution (directing a sheriff or constable to seize non-exempt property), post-judgment written discovery (to identify assets the debtor has not disclosed), and turnover orders (which require the debtor to turn over non-exempt property to a receiver or directly to satisfy the judgment). The right tool depends on what the debtor owns and where assets are located.
Enforcement Tools: Turnover Orders and Post-Judgment Discovery
What is a turnover order?
A turnover order is a court order requiring a judgment debtor to turn over non-exempt assets to satisfy a judgment. Texas courts can also appoint a receiver to manage or liquidate assets on the creditor's behalf. Turnover relief is particularly useful when the debtor has assets that are difficult to reach through a standard writ of execution — such as interests in other entities, accounts receivable, or certain contractual rights.
What is post-judgment written discovery used for?
After a judgment is entered, a creditor can use written discovery — interrogatories, requests for production, and requests for disclosure — to compel the debtor to identify assets, accounts, income sources, and other property. This is one of the most practical tools for a creditor facing a debtor who claims to have nothing. The responses are made under oath and can be used to support further enforcement action.
Foreign Judgments
Can a judgment from another state be enforced in Texas?
Yes. Texas has adopted the Uniform Enforcement of Foreign Judgments Act, which provides a process for registering a valid out-of-state judgment in a Texas court. Once registered, the foreign judgment can generally be enforced like a Texas judgment using the same enforcement tools. There are procedural steps and potential defenses involved, so proper registration matters.
What if my debtor has assets in multiple states?
Multi-state collection adds complexity. A Texas judgment may need to be registered in each state where the debtor has assets, and each state has its own registration and enforcement rules. The firm handles multi-state complications and can advise on the most efficient enforcement path when assets are spread across jurisdictions.
Collection While a Judgment Is on Appeal
Can I keep collecting while the debtor appeals the judgment?
Texas law addresses this directly, and the answer is not a simple yes or no. A judgment debtor who appeals may be required to post a supersedeas bond to suspend enforcement. If no bond is posted — or if the bond is insufficient — the creditor may have grounds to continue enforcement during the appeal. The rules and strategy here are nuanced; waiting out an appeal without evaluating your options can cost time and recovery.
How Long Does a Texas Judgment Last?
How long does a Texas judgment last?
A Texas judgment is generally valid for ten years and can be renewed before it expires. Allowing a judgment to lapse without renewal means losing the ability to enforce it. Timing matters: a judgment that is close to expiration requires prompt action to preserve its value. Do not assume a judgment is perpetually enforceable without checking its age.
When does delay make recovery harder?
Almost always. Beyond judgment expiration, delay matters because: debtors move assets, bank accounts change, businesses dissolve or reorganize, and statutes of limitations run on underlying claims. The earlier a collections lawyer is involved, the more tools are available. This is true before suit, after judgment, and during enforcement.
Collectability and Whether to Pursue
How do you tell whether a debtor can actually pay?
This is the threshold question in every collections matter, and many creditors genuinely do not know the answer when they first call. Collectability assessment looks at factors such as: whether the debtor has a business or real property, known bank or brokerage accounts, income or receivables, and whether the debtor has other judgments or is in financial distress. A collections lawyer can help evaluate collectability before significant money is spent pursuing an uncollectible account.
What warning signs suggest a matter may cost more to pursue than it is worth?
Key red flags include: a debtor with no known assets, a debtor who has recently filed or is about to file bankruptcy, a small balance relative to likely litigation costs, a debt with no written documentation, or a matter where the underlying claim is genuinely disputed. None of these automatically kill a matter, but each one raises the cost-benefit question and deserves honest evaluation before proceeding.
What common mistakes do creditors make before hiring counsel?
Common mistakes include:
- Waiting too long, allowing the debtor's situation to deteriorate
- Failing to preserve written documentation of the debt
- Accepting partial payments without a written agreement addressing the balance
- Assuming a judgment will be easy to collect without enforcement effort
- Negotiating directly with a debtor in ways that complicate later collection
Debtor Representation
Do you represent debtors as well as creditors?
Yes. While Cook Keith & Davis's primary focus is representing creditors, the firm also represents debtors who need counsel when a judgment has been entered against them or when a collections action has been filed. If you are on the receiving end of a judgment enforcement effort and need to understand your rights and options, the firm can evaluate your matter.