Q: Do I have to send accounts to a collection agency before turning them over to you?

No. You may place your accounts directly with us.

Q: I have an out-of-state judgment against a Texas debtor. How do I collect on the judgment in Texas?

The out-of-state judgment will need to be domesticated first, which is done by filing the out of state (foreign) judgment in the Texas courts. Thirty days later (if not otherwise challenged) the judgment will become final and enforceable just like any other Texas judgment.

Q: I have a judgment that is eleven years old. Can I still execute on it?

Only if you have abstracted it and executed on it during the last ten years. If not, your judgment has gone “stale” (or “dormant”). The good news is that Texas law specifically allows you to revive the judgment during the two years following the date the judgment went “stale” by filing an “action on a debt”. The judgment is thereby revived and a new ten year execution period is established.

Q: How else can a judgment term be extended beyond ten years?

In addition to execution extensions, family law judgments may have provisions which keep them alive longer. Also, certain laws may extend the period beyond ten years while a debtor is out of state.

Q: Wage Garnishment is not allowed in Texas. Is there any type of garnishment that is allowed?

Yes. Commissions can be garnished. Wage checks which are cut out of state may be garnished. In addition to employers and banks, garnishment actions can be brought against any third party who either owes money to, or holds money on behalf of, the debtor.

Q: Do I have to get a writ of execution before I can have a receiver appointed?

The law does not require you to do so, but some judges do. Receiverships can be quite disruptive to a business. A few judges prefer the use of a writ of execution first as it gives the debtor a chance to choose the assets to be used to satisfy the judgment. However, many courts know that debtors often do not fully disclose their assets and it is not unusual for debtors to tell the constable they either have insufficient assets to satisfy the judgment or no assets at all. At that point, Texas law clearly prescribes the issuance of a turnover order and the appointment of a receiver. The failure of the judgment debtor to comply with the turnover order and/or orders presented by the receiver can subject the debtor to contempt proceedings in the court.

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