Navigating Post-Judgment Receivership in Texas

Appointing a Receiver in TX

When a prevailing party, typically a plaintiff or claimant, is awarded a judgment in Texas, the legal journey doesn't always end there. In certain situations, the enforcement of judgments can be extensive and may involve the appointment of a post-judgment receiver. This legal mechanism, known as post-judgment receivership, plays a crucial role in ensuring the satisfaction of court-ordered remedies. Let’s explore what post-judgment receivership is in Texas and how it impacts the parties involved in lawsuits after judgment is rendered.

Post-judgment receivership is a legal process in which a neutral third party, known as the “receiver,” is appointed by the court to manage and oversee the non-exempt assets of a judgment debtor, typically the defendant in the lawsuit. The primary goal of receivership is to facilitate the collection of the judgment amount awarded by the court through the orderly liquidation of the judgment debtor’s non-exempt assets. 

Key Situations for Post-Judgment Receivership:

  1. Complex Asset Structures: Post-judgment receivership becomes crucial when a judgment debtor's non-exempt assets are intricate and difficult to liquidate; that is, converting said assets into cash to satisfy a judgment. The receiver's expertise is invaluable in handling such complexities.
  2. Fraudulent Conveyance Concerns: If there are suspicions of fraudulent conveyance or attempts to hide assets to evade judgment by the judgment-debtor, a receiver can be appointed to investigate and recover such assets.
  3. Business Entities as Judgment Debtors: When the judgment debtor is a business entity, a post-judgment receiver may be appointed to manage the business's operations and assets to satisfy the judgment.
  4. Non-compliance with Court Orders: In situations where the judgment debtor fails to comply with court orders to satisfy the judgment, the appointment of a receiver becomes a compelling enforcement measure.

The Role of the Receiver:

The receiver takes control of and manages the judgment debtor's non-exempt assets, ensuring that they are appropriately maintained and, when necessary, liquidated. Additionally, financial aspects, including accounting and reporting, fall under the receiver's purview. This ensures transparency and accountability in the handling of assets. The receiver has the authority to sell, lease, or otherwise dispose of non-exempt assets to generate funds for satisfying the judgment. Throughout the receivership process, the receiver communicates with creditors, providing updates on asset management and addressing concerns.

All this does come at cost. The fees of the receiver are first set by the court in the Order Appointing Receiver. These fees can be as much as 25% of the judgment collected. The receiver's fees are paid by the judgment -debtor, and the receiver can take non-exempt assets to pay these fees in addition to the judgment debt being collected.

Legal Procedures in Texas:

The appointment of a receiver is typically initiated by a court order. The court has the authority to select a qualified receiver based on recommendations or nominations. In Texas, receivers are often required to post a bond, serving as a financial safeguard for the proper execution of their duties. The receiver is obligated to provide regular reports to the court, detailing the status of asset management and any significant developments. The court determines the length of the receivership but shall not exceed 180 days. Under recent rules issued by the Texas Supreme Court, if a creditor wants to extend past the 180 days limit, they must show "good cause" for the extra time.  


Post-judgment receivership in Texas is a powerful legal tool designed to ensure the effective enforcement of court judgments. Whether dealing with complex asset structures, concerns of fraudulent conveyance, or non-compliance with court orders, the appointment of a receiver brings an additional layer of oversight and expertise to the process. Understanding the nuances of post-judgment receivership is crucial for both judgment creditors seeking satisfaction and judgment debtors navigating the enforcement landscape. If you find yourself involved in post-judgment enforcement, seeking legal advice from an experienced litigation attorney is essential to navigate this intricate legal terrain successfully.

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