Domesticating and Enforcing Out-of-State Judgments in Texas: How to Collect When the Debtor's Assets Are Here
A judgment from a California court, a New York arbitration confirmation, or a federal court order entered in Illinois can't be enforced against assets located in Texas until it's been domesticated. Domestication is the process of filing the out-of-state judgment with a Texas court so it becomes a Texas judgment, entitled to the same enforcement tools (writs of execution, abstracts of judgment, garnishment, turnover orders) as a judgment originally rendered in Texas.
Read MoreFraudulent Transfers and the Texas Uniform Voidable Transactions Act: When the Debtor Puts Assets Out of Reach
A judgment creditor who discovers through post-judgment discovery that the debtor transferred a rental property to a family member for $10 six months before the judgment was entered, or that the debtor moved $200,000 from a personal bank account into a newly formed LLC owned by the debtor's spouse, has encountered the most frustrating obstacle in collection practice: the debtor who anticipated the judgment and moved assets beyond the creditor's reach before enforcement could begin.
Read MoreFrom Judgment to Collection: How Post-Judgment Enforcement Works in Texas
A judgment is a court order establishing that one party owes another a specific sum of money. It's also, by itself, just a piece of paper. Courts don't collect the money they award. Once the judgment is entered, the creditor must take affirmative steps to enforce it, and if the creditor doesn't act, the judgment remains on the docket, accruing post-judgment interest while the debtor spends, transfers, or hides the assets that could have satisfied it.
Read MorePost-Judgment Discovery: How to Find the Debtor's Assets Before You Can Seize Them
Before a creditor can garnish a bank account, levy on personal property, or appoint a receiver, the creditor needs to know what the debtor owns and where it's located. A writ of execution served on a constable who can't find non-exempt property produces a nulla bona return and a wasted filing fee.
Read MoreTexas Property Exemptions: What the Creditor Can't Touch
Texas provides some of the broadest debtor protections in the country. A judgment creditor with a valid, final money judgment can pursue the debtor's non-exempt assets through writs of execution, garnishment, and turnover orders, but the creditor can't touch property that Texas law designates as exempt.
Read MoreWrits of Execution, Abstracts of Judgment, and Turnover Orders: The Three Core Enforcement Tools
Post-judgment enforcement in Texas uses three primary tools, each designed to reach a different category of assets. An abstract of judgment creates a lien on real property. A writ of execution directs law enforcement to seize and sell personal property.
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