Turnover Order
A post-judgment court order compelling the judgment debtor to turn over non-exempt property to a sheriff, constable, or receiver for application against the judgment. Texas turnover is governed by Tex. Civ. Prac. & Rem. Code § 31.002 and is especially useful for reaching property that is hard to reach by ordinary execution, such as closely-held business interests, intangible assets, foreign-located assets, and accounts not in the debtor's possession.
A turnover order is a post-judgment court order compelling the judgment debtor to turn over non-exempt property to a sheriff, constable, or court-appointed receiver for application against the judgment. Texas turnover is governed by Section 31.002 of the Civil Practice and Remedies Code. The remedy is most useful for property that is hard to reach by ordinary execution, such as closely-held business interests, intangible assets, foreign-located assets, accounts at non-resident financial institutions, and other assets where ordinary execution mechanisms are ineffective.
The turnover statutory framework
Section 31.002 authorizes a court to order a judgment debtor to turn over nonexempt property that is in the debtor's possession or subject to the debtor's control, together with related documents and records. Since a 2017 amendment, the statute no longer requires a showing that the property cannot readily be attached or levied on by ordinary legal process. The order may direct the debtor to turn over the property to a sheriff or constable for execution sale, or to a court-appointed receiver for management and disposition. The court may also enjoin the debtor from transferring, encumbering, or otherwise disposing of the property pending turnover.
Categories of turnover-suitable property
Property typically reachable through turnover that ordinary execution cannot reach: (1) closely-held business interests, such as stock in private corporations (for LLC membership interests and partnership interests, a charging order is the exclusive remedy for satisfying a judgment out of the interest: Tex. Bus. Orgs. Code §§ 101.112(d), 152.308(d), 153.256(d)); (2) accounts receivable, though typically reached through garnishment first; (3) intellectual property, patents, trademarks, copyrights; (4) litigation rights, claims and choses in action; (5) foreign-located assets, assets outside Texas where execution is procedurally complex; (6) cryptocurrency and digital assets; (7) cash and securities at non-resident institutions; (8) future income streams, royalties, contractual receivables, but not unpaid wages for personal services, which § 31.0025 bars a court from ordering turned over before they are paid.
Turnover receiverships
The court-appointed receiver is the principal turnover mechanism for complex assets, particularly closely-held business interests and intangibles. The receiver's powers typically include: (1) taking possession of the asset; (2) operating or managing the asset to preserve value; (3) selling the asset in commercially reasonable manner; (4) collecting income from the asset; (5) instituting legal proceedings to enforce rights related to the asset. Receivers are typically attorneys or commercial-collection professionals; their fees and expenses are paid from the asset's value or by the judgment debtor under the court's order.
Property exemptions limiting turnover
Section 31.002 expressly excludes exempt property from turnover. Texas exempt property under Property Code Chapter 42 includes: (1) up to $50,000 (single) or $100,000 (family) of personal property, household furnishings, food, clothing, jewelry, one motor vehicle for each family member or single adult who holds a driver's license or relies on another person to drive, tools of the trade, livestock; (2) retirement accounts, qualified retirement plans, IRAs, 403(b)s; (3) professionally prescribed health aids, current wages and alimony or support, outside the aggregate cap. Certain insurance benefits are separately exempt under the Insurance Code. Homestead under Chapter 41 is also exempt. The debtor must claim exemptions; the burden is on the debtor to identify property as exempt.
Turnover vs. other collection tools
Turnover is one of several Texas post-judgment collection tools: (1) execution, sheriff or constable seizes tangible personal property under writ of execution; works for ordinary tangible assets; (2) garnishment, reaches debtor's property held by third parties (banks, customers); works for cash and accounts receivable; (3) turnover, reaches non-exempt property not subject to ordinary execution; works for intangibles, foreign assets, business interests; (4) receivership, court-appointed manager takes control of assets for liquidation; works for complex assets requiring active management. Sophisticated collection campaigns typically combine multiple tools targeting different asset categories.
Disclosure orders supporting turnover
Section 31.002(b)(1) allows the court to order turnover of documents and records related to the property along with the property itself, and § 31.002(h) allows an order that does not identify the specific property. Texas Rule of Civil Procedure 621a similarly authorizes post-judgment discovery of debtor assets through interrogatories, document requests, depositions, and subpoenas duces tecum. Asset-discovery practice typically precedes turnover application, the creditor first identifies what property exists, then targets specific assets through turnover orders.
For Texas judgment creditors, turnover is the principal mechanism for reaching the assets of sophisticated debtors who structure holdings to evade ordinary execution. Creditors typically pair post-judgment discovery under Rule 621a with turnover, garnishment and execution, and may seek a receiver for assets that need management. Debtors commonly contest overbroad receiverships and assert exemptions, and a debtor who disobeys a turnover order may be held in contempt (§ 31.002(c)). Exemption planning is limited by Property Code § 42.004 and the fraudulent transfer statute.