It is no small feat for a business to successfully navigate the maze of commercial litigation and emerge with a judgment against a debtor. However, the battle does not end with the court’s decision.
The real challenge begins with enforcing the judgment and collecting what you are owed. Here are three enforcement methods to consider in Texas.
Abstract of judgment
An abstract of judgment is a critical first step. When filed with the county clerk, this document creates a lien on the debtor’s non-exempt real property in that county.
It’s important to ensure accuracy when completing this form, as errors can delay the process. Once filed, this lien can remain effective for ten years, providing a long window to enforce the judgment.
Writ of execution
The writ of execution enables a sheriff or constable to seize the debtor’s non-exempt property in order to satisfy the judgment. The process can involve anything from levying bank accounts to seizing personal property.
Timing is vital. The writ must be executed within ten years of the judgment’s issuance, or it will expire.
Turnover order
A turnover order can be an effective way to reach assets that are not easily seized or levied, like stocks or future income. It is a court order directing the debtor to turn over non-exempt property or funds to satisfy the judgment. This method can be especially useful when dealing with elusive assets or a debtor who chooses to ignore the judgment.
These are just three options, but you may have other avenues to explore when seeking to enforce a judgment. A good next step is to get experienced legal guidance.