How to Do a Judgment Debtor Exam in Texas

“How do I conduct a judgment debtor exam in Texas?” As a lot more judgment creditors decide to use to the Internet to find out the best way to collect their judgments, I get this particular question a lot. Before I can answer the question I've got to ensure that we are on the “same page” with our definitions. So, let me clarify the terms.

The Judgment Debtor Exam Stated

Virtually all states permit judgment creditors to use a collection tool referred to as the “judgment debtor exam.” Generally, this is a tool that permits a judgment creditor to ask a judgment debtor questions which can help them collect on their judgment.

The entire question and answer session normally occurs under the court’s oversight (i.e., in court) with the judgment debtor being put under oath. The judgment creditor, or the creditor’s attorney, is able to ask the judgment debtor questions about his finances, including banking accounts, account numbers, the amount of cash in his wallet and even more. Obviously, the judgment debtor exam is a great technique to persuade a judgment debtor to reach some kind of payment arrangement with the judgment creditor.

The Judgment Debtor Exam in Texas

So, exactly how does a judgment creditor execute a judgment debtor exam in Texas? Very differently than is carried out in most other states.

To begin with, in Texas we don’t actually have any court proceeding known as a judgment debtor exam. We do have a process that enables judgment creditors to ask questions of the judgment debtor under oath. Our procedure, however, is not carried out in court in the presence of a judge. The process we have in Texas consists of what we call “Written Interrogatories in Aid of Judgment” along with a “Notice of Deposition with Subpoena Duces Tecum.”

Written Interrogatories in Aid of Judgment

The Written Interrogatories in Aid of Judgment is simply a set of written questions that the judgment creditor creates and mails to the judgment debtor. The judgment creditor can ask almost anything with regards to the judgment debtor’s financial situation, including bank accounts, account numbers, property holdings, securities, bonds, inheritances expected, stamp collections, coin collections, art collection, automobiles, fishing boats, motorbikes as well as other vehicles. The door is really wide open at this stage in Texas judgment collection. Any question that could result in the discovery of non-exempt assets may be asked.

The judgment debtor must answer the written interrogatories in writing, under oath, within 30 days of the receipt of the interrogatories. Failure to reply to in a timely fashion or failure to answer fully can place the judgment debtor in a position to be ordered by the court to answer. On going refusal to answer could ultimately result in the judgment debtor being jailed for contempt of court.

Notice of Deposition with Subpoena Duces Tecum

The Notice of Deposition with Subpoena Duces Tecum is essentially a notice to the defendant that his presence is called for at a formal deposition. A deposition is a proceeding conducted outside of court but is documented by a court reporter with the judgment debtor being placed under oath. At a post-judgment deposition, the judgment creditor or his attorney is able to ask the judgment debtor about finances, including bank accounts, account numbers, and other non-exempt property holdings that may be used to pay the judgment.

The subpoena duces tecum portion of the Notice of Deposition is simply a subpoena for the judgment debtor’s financial documents. The judgment debtor can be required, through the subpoena, to provide bank account data, IRS tax statements, as well as other files concerning the personal finances of the judgment debtor.

Just like the Written Interrogatories, the Notice of Deposition can be enforced through a court order and ultimately, in the event the refusal to attend continues, contempt of court.

Conclusion

While Texas does not officially use a process referred to as a judgment debtor exam, we do use 2 discovery strategies which achieve the same outcome. Making use of the Written Interrogatories in Aid of Judgment as well as a Notice of Deposition with Subpoena Duces Tecum, an aggressive judgment creditor can easily accomplish the same outcome as judgment creditors in states using a judgment debtor exam … he can receive cash on his judgment.

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Source: How to Do a Judgment Debtor Exam in Texas

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