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The 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 respond to the question I've got to ensure that we are on the “same page” with our definitions. So, permit me to explain the terms.

The Judgment Debtor Exam Stated

The majority of states allow judgment creditors to utilize 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 that will help them collect on their judgment.

The whole question and answer session commonly takes place with the court’s oversight (i.e., in the courtroom) with the judgment debtor being put under oath. The judgment creditor, or the creditor’s attorney, is permitted to ask the judgment debtor questions about his finances, including bank accounts, account numbers, the amount of money in his wallet and even more. Clearly, the judgment debtor exam is a good technique to motivate a judgment debtor to arrive at some sort of payment agreement with the judgment creditor.

The Judgment Debtor Exam in Texas

So, exactly how does a judgment creditor conduct a judgment debtor exam in Texas? Very differently than is done in the majority of other states.

First of all, in Texas we do not even have any court proceeding referred to as a judgment debtor exam. We do have a process that allows judgment creditors to ask questions of the judgment debtor under oath. Our process, however, isn’t carried out in court in the presence of a judge. The method 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 actually a set of written questions the judgment creditor prepares and mails to the judgment debtor. The judgment creditor can ask nearly anything in 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, motorboats, motorcycles and other vehicles. The door is really wide open at this stage in Texas judgment collection. Just about any question that may lead to the discovery of non-exempt assets may be asked.

The judgment debtor must answer the written interrogatories in writing, under oath, within 1 month of the receipt of the interrogatories. Failure to answer in a timely fashion or failure to reply completely could put the judgment debtor in a position to be ordered by the court to answer. Sustained refusal to answer can 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 basically a notice to the judgment debtor that his presence is required 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 paperwork. The judgment debtor can be required, through the subpoena, to bring savings account data, IRS tax statements, in addition to files regarding the financial condition of the judgment debtor.

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

Conclusion

While Texas doesn’t technically use a court proceeding known as the judgment debtor exam, we do offer two discovery strategies that accomplish the same outcome. Utilizing the Written Interrogatories in Aid of Judgment plus a Notice of Deposition with Subpoena Duces Tecum, an aggressive judgment creditor can easily accomplish the identical result as judgment creditors in states having a judgment debtor exam … he can receive cash on his judgment.