Courts regularly appoint Peter C. Ruggero as a post-judgment Receiver under the Texas Turnover Statute, Chapter 31 of the Texas Civil Practice and Remedies Code. When a money judgment is entered, it can be difficult to enforce the judgment through ordinary legal process. Some debtors are also well counseled in how to make themselves "judgment proof." Through the Texas Turnover Statute, a Receiver can be appointed to serve as an agent of the Court. Because the Receiver can not hold an adverse interest against the debtor, the judgment plaintiff and its lawyers can not be appointed as Receiver.
On entry of a turnover order appointing Receiver, the debtor's property is held in custodia legis, meaning in the custody of the Court, and transfers of such property are void. A Receiver is comparable to a chapter 7 bankruptcy trustee in that the Receiver gathers, liquidates, and distributes the debtor's non-exempt property. Bankruptcy is governed under federal law, whereas, a Receiver appointed under the Texas Turnover Statutes is governed under Texas state law.
Examples of property that are more effectively captured by a Receiver are accounts receivable, causes of action or claims held by a debtor against others, rents, contract rights, domain names, and movable property like accounts, stocks, equipment, and vehicles. The Receiver's fees and expenses are typically assessed against the debtor as costs of Court. Each Receivership is unique. If you believe you hold a judgment that might be appropriate for a Receiver, please complete our general information form and submit it to us for consideration.