Your bank account has been frozen because your bank received a turnover demand from our office. The bank is required to turn over to our office all non-exempt funds and property that you may have on deposit with them.

A judgment has been rendered against you or someone on your account. If settlement arrangements were not made with the judgment creditor, then the judgment creditor has the right to request that the court appoint an independent “turnover receiver” to seize non-exempt assets and apply them to the judgment. If bank funds have been seized, then the court signed an order appointing a turnover receiver and granted the power to seize assets, including bank funds.

When a receiver is appointed, the non-exempt property of the judgment debtor described in the order becomes in custodia legis, or “in the custody of the court”. This means that the receiver, acting with the authority of the court, has constructive possession of your funds at the time the order was signed. The bank is required to recognize this order and act as the receiver instructs.

A turnover receiver is someone appointed by the court under Texas Civil Practice & Remedies Code §31.002. The statute provides that a judgment creditor is entitled to aid from the court to reach non-exempt property in order satisfy the judgment. The court may “appoint a receiver with the authority to take possession of the nonexempt property, sell it, and pay the proceeds to the judgment creditor to the extent required to satisfy the judgment.”

It is important to note that the turnover receiver does not represent the plaintiff or the defendant, was not involved in the underlying litigation, and only has the authority to act as set forth the order appointing the receiver.

Courts have held that notice is not required by the turnover statute, and that there is no unfair surprise because the judgment itself puts the debtor on notice that post- judgment collection proceedings will follow. The judgment creditor’s attorney decides whether to provide notice of their application to appoint a receiver.

From a practical perspective, when people get notice that something is about to be seized, they are more likely to hide, dissipate, or otherwise hinder enforcement of the judgment against that asset.

You will need to consult with your own attorney for legal advice. The judgment creditor was required to serve you with their lawsuit, and file proof of service, before the court was willing to sign a judgment. The court also sent you notice when the judgment was rendered. If you wish to investigate these issues, you should contact the court clerk for the court that signed the judgment.

The funds seized will be remitted by your bank to our office. We will then take appropriate next steps as determined by the court’s order. Typically, receiver fees are assessed to the amount seized, and then the net amount is remitted to the judgment creditor’s attorney, who will then credit the judgment with that amount. Some courts may require additional steps or additional approval before remittance. You should review the court’s order for additional information.

Judgment enforcement will continue until the judgment is satisfied, settlement arrangements are reached to satisfy the judgment, or the receivership is terminated.

Yes. We encourage voluntary payment arrangements that give you peace of mind and put the judgment on the path to being satisfied. There are three options. For options 2 and 3, you must complete the online process and submit your financial information for consideration.

Option 1 – Pay Off the Judgment
If the seized funds are sufficient to satisfy the judgment plus court costs and receiver fees, or if you can marshal enough money to pay the full amount of the judgment, then we can accept your payment and close down the receivership.

Option 2 – Lump Sum Settlement
If you can’t marshal enough money to pay off the judgment but still a substantial amount, then you can make an offer to settle the judgment for less than the balance owed. While the receiver does not have the authority to agree to a reduction in the judgment balance, we can work with the judgment creditor to see if they will agree.

Option 3 – Weekly, Bi-weekly or Monthly Payments
We can work with you to set up regular payment arrangements. So long as the agreed regular payments are timely made, then the judgment will not be further enforced. Every year, we may re-assess your financial situation and determine if appropriate financial resources are being dedicated to satisfying your unpaid judgment. This may result in a change in your payment amount.

You must complete the online process and submit your financial information for review. We will call or email you to discuss your case. Once we have an agreement, our office will send a proposed settlement agreement to you that will need to be signed and returned. The agreement will outline how and when to make your payments, as well as the other terms of the settlement.

Generally speaking, the bank has already begun the process of turning over the bank funds to the receiver. It is very difficult to unwind that process. Seized funds will not be returned solely for the promise to start settlement payments. However, depending on your bank, it may be possible to release some of the seized funds back to you if the receiver finds that a payment plan would be reasonable, and to cover basic necessities. The possibility of this option depends on your bank’s practices and your financial situation.

Emergency requests to release some portion of the funds back to you must be submitted to receiverships@noacklawfirm.com along with evidence demonstrating the amount needed. You must also disclose when you next expect to receive income. Situations are evaluated on a case-by-case basis, but unless the request is placed very quickly after the bank levy, the bank has likely already issued a check.

The need to pay other debts is not considered an emergency need. Seriously delinquent bills that, if unpaid, will materially affect the health and safety of the defendant or their dependents may be considered an emergency on a case-by-case basis.

You will need to consult with your own attorney for legal advice. Generally, money loses its exempt status when deposited with a bank because it changes character and becomes a debt owed by the bank to you. Thus, while wage garnishment is prohibited in Texas, wages deposited in a bank account are not exempt.

Social Security, veteran benefits, and other federal benefit payments are exempt, and should not be frozen by your bank. Your bank is required to review your bank account and protect these funds pursuant to 31 CFR Sec. 212. If these benefits are transferred out of the account where they are deposited, then the bank will not protect those funds.

Certain other funds, such as the proceeds from the sale of a homestead or IRA distributions, may be exempt under Texas law for a certain period of time. See Chapter 42 of the Texas Property Code for a complete listing.

If you believe that some of your funds were seized despite their exempt nature, you may submit evidence demonstrating the exempt status of your funds to receiverships@noacklawfirm.com or fax to (210) 579-1777. Our firm is committed to promptly reviewing all exemption claims. Proving an exemption to the receiver is the fastest way to resolve any exemption claim and regain access to your funds.

However, you may also complete the Personal Property Exemption Form that was emailed and mailed to you, and file it with the court. You may follow the instructions attached to the form, and copy our office and the judgment creditor with your filing. The court should set a hearing date within ten days of the filing of your claim of exemption.

The judgment itself sets forth the amount of the judgment, whether court costs or attorneys’ fees are awarded to the judgment creditor, and the rate of interest to be applied to the judgment. The order appointing the receiver may award additional attorneys’ fees, and also establishes receiver’s entitlement to fees and reimbursement of costs.

The receiver’s fee is usually calculated as a percentage of the total amount collected by the receiver, and is added to the judgment balance as a cost of court. This means that the portion of your seized funds and/or payment that goes to the receiver’s fee does not reduce your judgment balance. Refer to the order appointing the receiver in your case for more specific information.

No. Banks differ significantly in how they process receivership orders. Many will charge you a processing fee for responding to any bank levy or seizure order – this fee is not turned over to the receiver. Some banks assess the full amount of the hold to your account as a charge, resulting in a negative balance. This typically disappears when the bank finishes processing the turnover order.

It depends. If the funds are deposited before the bank releases its hold on the account, then those funds may also be seized. If you have reached a settlement with us, then we quickly process a remit and release letter to the bank that should prevent further funds from being seized, but it depends on the timing and the bank’s diligence.