Texas Order for Turnover

A Texas Order for Turnover requires the debtor to turn assets over to the sheriff for sale to pay some or all of the judgment amount.

A Texas order for turnover is a powerful collections tool and one of our favorite tactics for collecting debt. We have used it many times to great effect. Sometimes, it is the only remedy that can push the debtor to settle with you. In simple terms, an order for turnover requires the debtor to deliver non-exempt assets to the sheriff.  The sheriff will then sell the assets and deliver the proceeds to the holder of the judgment to satisfy part (or all) the judgment.

The best way for the debt to be collected is to force the debtor to interact with us. An order for turnover is quite effective in motivating the debtor to discuss the situation with us. The debtor receives an order to appear in court. The debtor frequently discusses the intent of the motion with us at that point. Then they have to actually appear in court- where we can talk to them again. Once the order for turnover is issued requiring the turnover of assets, we have many more reasons to talk talk to the judgment debtor. An order for  turnover is a very effective tool for communicating with the debtor.

A formal hearing is the usual process for a motion for turnover. However, in unusual circumstances, we can present the motion for turnover to the judge without the debtor present (known as ex parte hearings). Normally, the judge will allow thirty days for the debtor to turn the assets over. The sheriff will then provide the proper notice to the public and sell the assets at auction.

A turnover proceeding can also be used to ask the court to put the debtor into a receivership. You can review that process by clicking here.

 

LP

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