Texas Court Receiver

Frequently Asked Questions

Receivers and receiverships in Texas describe situations when a third-party receiver appointed to property by a judge is given the responsibility of locating and liquidating the defendants’ nonexempt property in order to pay a judgment. The “turnover order” is the procedural mechanism for these grants of power.

A plaintiff or creditor can make a motion for a turnover order and appointment of a receiver, and the defendant or debtor will have the opportunity to mount an objection to the appointment of a receiver.

Once appointed, the receiver may sell the property and pay out the proceeds to a creditor to satisfy a judgment. The receiver’s powers also include being able to take charge of and keep possession of property, receive rents from property, collect and compromise demands related to property, transfer property and perform any other acts related to property that are authorized by the court.

The term “turnover” comes from the trial judge’s ability to order the debtor to deliver or “turn over” nonexempt assets to an officer or a receiver. See Ex parte Johnson. Turnover may take place with property that is owned by the judgment debtor and not exempt from attachment, execution, or seizure for the satisfaction of liabilities. See Criswell v. Ginsberg & Foreman. When identifying property subject to turnover, “the trial court’s order must be definite, clear, and concise, leaving the debtor no doubt about his duty and not calling for interpretation, inferences, or conclusions.” See Finotti v. Old Harbor Co.

Under the Texas Code, a turnover order may be enforced by contempt proceedings. In other words, if any person interferes with the execution of the turnover order, such as the defendant/debtor trying to interfere with the sale of property, the defendant risks being haled into court and possibly being sent to jail.

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