Understanding Post-Judgment Asset Recovery Under Texas Law

Winning a lawsuit in Texas does not always mean you will automatically get paid. In many cases, judgment debtors hide assets, move money, or structure their finances to avoid collection.

When traditional collection methods fail, Texas law provides a powerful remedy: the Turnover Order.

This article explains how turnover relief works, when it applies, and how Texas courts use it to help creditors enforce valid judgments.

What Is a Turnover Order in Texas?

A turnover order is a court order that requires a judgment debtor to turn over non-exempt property to satisfy a judgment.

Texas authorizes turnover relief under Texas Civil Practice and Remedies Code § 31.002.

The statute provides:

“A judgment creditor is entitled to aid from a court of appropriate jurisdiction through injunction or other means in order to reach property to obtain satisfaction on the judgment.”
Tex. Civ. Prac. & Rem. Code § 31.002(a)

This remedy applies when:

• The debtor owns property,
• The property cannot easily be seized by ordinary legal process, and
• The property is not exempt.

Turnover orders are especially useful when assets are hidden, transferred, or difficult to locate.

When Can a Creditor Request Turnover Relief?

To obtain a turnover order, a creditor must show three things:

1. A Valid, Final Judgment

Turnover relief is available only after a court has entered a final judgment.

You must first establish:

• Liability
• Damages
• Finality

Pending or interlocutory judgments do not qualify.

2. The Debtor Owns Non-Exempt Property

Texas law protects certain assets from seizure, including:

• Homestead property
• Certain personal property
• Qualified retirement accounts
• Limited wages

However, many assets are not exempt, including:

• Bank accounts (in most cases)
• Business interests
• Contract rights
• Investment accounts
• Receivables
• Non-homestead real estate

Only non-exempt property may be subject to turnover.

3. The Property Is Not Readily Reachable by Execution

Turnover applies when property:

• Cannot be easily seized by sheriff or constable, or
• Is being concealed or transferred.

Section 31.002(a)(2) requires that the property:

“cannot readily be attached or levied on by ordinary legal process.”

This commonly includes:

• LLC membership interests
• Royalties
• Trust interests
• Accounts receivable
• Cryptocurrency
• Intellectual property rights

What Powers Does the Court Have Under the Turnover Statute?

Texas courts have broad authority under the statute.

Appointment of a Receiver

The court may appoint a receiver to take control of the debtor’s assets:

“The court may appoint a receiver with the authority to take possession of the nonexempt property.”
Tex. Civ. Prac. & Rem. Code § 31.002(b)(3)

Receivers can:

• Collect income
• Sell property
• Manage businesses
• Recover transferred assets
• Distribute proceeds

This is one of the most powerful post-judgment tools in Texas law.

Injunctions and Asset Restrictions

Courts may also issue injunctions preventing debtors from:

• Transferring funds
• Selling property
• Closing accounts
• Dissipating assets

This prevents last-minute asset dumping.

Orders to Turn Over Documents and Information

Judgment debtors may be required to produce:

• Bank records
• Tax returns
• Business ledgers
• Investment statements
• Crypto wallets
• Contracts

This allows creditors to trace hidden assets.

How Turnover Proceedings Work in Practice

Step 1: Post-Judgment Discovery

Most turnover cases begin with discovery under:

• Texas Rule of Civil Procedure 621a

Creditors use interrogatories, depositions, and subpoenas to identify assets.

Step 2: File Motion for Turnover Relief

The creditor files a verified motion requesting:

• Turnover order
• Injunction
• Receiver appointment (if necessary)

The motion must include evidence showing asset ownership and non-exempt status.

Step 3: Hearing

The court conducts a hearing where:

• Evidence is presented
• Debtor may contest exemptions
• Asset location is evaluated

The burden is on the creditor to establish eligibility.

Step 4: Court Issues Turnover Order

If granted, the order may:

• Direct asset delivery
• Appoint a receiver
• Freeze accounts
• Impose reporting requirements

Violation of a turnover order may result in contempt.

Limitations and Constitutional Concerns

Turnover relief is powerful, but not unlimited.

Exempt Property Is Protected

Courts cannot order turnover of:

• Homestead
• Protected retirement funds
• Certain personal property

Attempts to reach exempt assets will be denied.

No Creation of New Property Rights

The statute does not allow creditors to create new interests.

Courts may only reach property the debtor already owns.

Due Process Protections

Debtors are entitled to:

• Notice
• Hearing
• Opportunity to object

Improper turnover orders can be reversed on appeal.

Turnover Orders vs. Garnishment and Execution

Remedy

Best Use

Writ of Execution

Physical property

Garnishment

Bank accounts, wages

Turnover Order

Hidden, complex, intangible assets

Turnover is often used when garnishment and execution fail.

Common Situations Where Turnover Is Effective

Turnover relief is frequently used in:

• Business disputes
• Breach of contract cases
• Real estate litigation
• Partnership conflicts
• Divorce judgment enforcement
• Fraud cases
• Commercial collection matters

It is especially useful when debtors attempt to “judgment-proof” themselves.

Why Professional Legal Guidance Matters

Turnover litigation is technical and highly procedural.

Mistakes may result in:

• Denied motions
• Sanctions
• Appeal reversals
• Delayed recovery

Proper drafting, evidentiary support, and strategy are essential.

Final Thoughts: Enforcing Judgments Requires Strategy

Obtaining a judgment is only half the battle. Collecting it requires persistence, investigation, and legal precision.

Texas turnover orders provide creditors with one of the most effective tools available for asset recovery—but only when used correctly.

If you hold an unpaid judgment, an experienced attorney can help determine whether turnover relief is appropriate and how to pursue it efficiently.

At David C. Barsalou, Attorney at Law, PLLC, we help clients navigate business, family, tax, estate planning, and real estate matters ranging from document drafting to litigation with clarity and confidence. If you’d like guidance on your situation, schedule a consultation today. Call us at (713) 397-4678, email barsalou.law@gmail.com, or reach us through our Contact Page. We’re here to help you take the next step.