Bill Analysis
This bill would modify what is known as the “Turnover Statute”. Under current law, after a defendant has been ordered to pay debts, and if they attempt to evade paying by selling assets to friends, or moving out of state, the judgement creditor has few means of collecting on that valid judgement. However, Texas’ unique turnover statute allows a “receiver” to collect on these debts starting within a matter of days, or even hours. Contrast that with writs of execution, which require a 30-day waiting period after judgement.
One part of the statute is sometimes interpreted in a way that would require the judgement creditor to exhaust all other legal options before a judge grants an application for turnover and appoints a person to receive the debts. This bill would repeal that section of the turnover statute.
Vote Recommendation Notes
This bill would allow the state to more efficiently enforce court orders against individuals who are evading their payment of debts. The turnover statute is viewed as an effective means of enforcing judgments for debt, divorce obligations, trademark violations, or uninsured torts. This is good policy because it provides low-cost conflict resolution while balancing liberty and justice. We support HB 1066 because it upholds out commitment to property rights for the individuals who are owed certain debts.
