Winning a lawsuit is only half the battle. Collecting the judgment is often the harder part.
If the person you sued refuses to pay — or hides assets — Texas law gives courts powerful tools to help creditors collect. One of the most misunderstood (and most powerful) is the turnover receivershipunder the Texas Civil Practice & Remedies Code.
If you’ve won a judgment in Texas and still haven’t been paid, here’s what you need to know.
The Legal Authority: Texas Civil Practice & Remedies Code § 31.002
The Texas Turnover Statute provides:
“A judgment creditor is entitled to aid from a court of appropriate jurisdiction… to reach property to obtain satisfaction on the judgment if the judgment debtor owns property, including present or future rights to property, that:
(1) cannot readily be attached or levied on by ordinary legal process; and
(2) is not exempt from attachment, execution, or seizure.”
— Tex. Civ. Prac. & Rem. Code § 31.002(a)
In plain English:
If the debtor owns non-exempt property that can’t easily be seized through a writ of execution, the court can order that property turned over — or appoint someone to take control of it.
What Is a Turnover Receiver?
Under § 31.002(b):
“The court may… appoint a receiver with the authority to take possession of the nonexempt property, sell it, and pay the proceeds to the judgment creditor.”
A turnover receiver is a court-appointed officer who:
- Locates non-exempt assets
- Takes control of them
- Sells them if necessary
- Applies proceeds to the judgment
This is especially useful when dealing with:
- LLC ownership interests
- Partnership distributions
- Accounts receivable
- Commissions
- Cryptocurrency
- Future payments owed to the debtor
If the debtor is self-employed or operating through entities, traditional execution often fails. That’s when turnover becomes powerful.
What Property Can Be Reached?
The statute is broad. It applies to:
“present or future rights to property”
— Tex. Civ. Prac. & Rem. Code § 31.002(a)
That includes:
- Contract rights
- Business income streams
- Intellectual property
- Royalty payments
- Promissory note receivables
- Online business revenues
However, exempt property cannot be seized. Texas has very strong debtor protections, including:
- Homestead (Texas Property Code § 41.001)
- Certain personal property (Texas Property Code § 42.001)
- Retirement accounts
Turnover is powerful — but it cannot override statutory exemptions.
When Is a Turnover Receiver Appropriate?
Courts typically grant turnover relief when:
- A valid final judgment exists
- Traditional execution has failed or would be ineffective
- The debtor owns non-exempt assets
- The assets are difficult to reach by ordinary means
The Texas Supreme Court has recognized the statute as a “procedural device” that aids enforcement of existing judgments.
It is not meant to punish — it is meant to collect.
Why This Matters in Business Disputes
In commercial cases, defendants often:
- Operate through multiple entities
- Shift income between accounts
- Pay themselves indirectly
- Structure assets to frustrate collection
A turnover receivership allows the court to look beyond simple bank accounts and reach actual economic value.
This is especially relevant in:
- Breach of contract cases
- Partnership disputes
- Fraud cases
- Construction litigation
- Commercial lease disputes
Winning the lawsuit is step one. Strategic collection is step two.
Can the Court Award Attorney’s Fees?
Yes.
Under § 31.002(e):
“The judgment creditor is entitled to recover reasonable costs, including attorney’s fees.”
That means the debtor may end up paying the cost of collection efforts.
Important Warning: It Works Both Ways
If you are a judgment debtor, you should understand:
- Courts can compel disclosure of assets
- Receivers can investigate business operations
- Income streams can be redirected
- You may be ordered to deliver documents
Ignoring a judgment does not make it disappear.
Final Thoughts: A Judgment Is Only as Good as Your Collection Strategy
Texas law provides powerful tools for judgment enforcement — but they must be used strategically and correctly.
If you have a Texas judgment and are not being paid, or if you are facing post-judgment collection efforts, understanding turnover receivership under Tex. Civ. Prac. & Rem. Code § 31.002 is critical.
Winning the case is one thing.
Getting paid is another.
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.
