"How do I conduct a judgment debtor exam in Texas?"

As more judgment creditors decide to utilize the Internet to discover the most effective means to collect their judgments, I get this specific question a lot. Before I can answer the question I want to verify that we are actually on the "same page" with our definitions. So, permit me to clarify the terms.

The Judgment Debtor Exam Explained

A large number of states allow judgment creditors to take advantage of a collection tool called the "judgment debtor exam." Generally, this is a practice which permits a successful plaintiff to ask a losing debtor questions that may help him collect a judgment.

The complete question and answer procedure generally happens under the court's direction (i.e., in the court room) with the defendant being put under oath. The judgment creditor, or the creditor's lawyer, asks the defendant questions relating to his financial resources and assets, including bank accounts, account numbers, the amount of money in his wallet and more. Obviously, the judgment debtor exam is a really good procedure to motivate defendants to reach some kind of payment plan with the winning party.

The Judgment Debtor Exam in Texas

So, how exactly does a winning plaintiff conduct a judgment debtor exam in Texas? Well, it is done very differently than it is in most other states.

To begin with, in Texas we do not in fact have any such proceeding. We do have a procedure that permits judgment creditors to ask questions of the defendant under oath. Our procedure, however, is not done in a formal hearing in the presence of a judge. The method we have in Texas incorporates what we refer to as "Written Interrogatories in Aid of Judgment" along with a "Notice of Deposition with Subpoena Duces Tecum."

The purpose of our process in Texas, however, is to make enforcement of a judgment easier. Our approach simply allows everything to be performed outside the presence of a judge ... initially, at least.

Written Interrogatories in Aid of Judgment

Written Interrogatories are basically a collection of written questions that the winning plaintiff creates and mails to the defendant. The purpose is to compile as much information as feasible about the debtor's assets and financial resources. The judgment creditor may ask about nearly everything regarding the debtor's financial circumstances, including things like bank accounts, account numbers, real estate property holdings, stocks, bonds, inheritances expected, stamp, coin and art collections, vehicles, motorboats, motorcycles along with other vehicles. The door is essentially wide open at this point in the Texas judgment collecting process. Virtually any question that could result in the discovery of non-exempt investments may be asked.

The defendant has to supply answers to the written interrogatories in writing, under oath, within 30 days of the receipt of the interrogatories. Failing to reply in a timely way or failure to respond completely may put him in a position to be ordered by the court to answer. On going failure to respond may at some point result in the defendant being put behind bars for contempt of court.

Notice of Deposition with Subpoena Duces Tecum

The Notice of Deposition with Subpoena Duces Tecum is merely a notification to the defendant that his presence is called for at a formal deposition. A deposition is a proceeding conducted outside of court but is written down by a court reporter with the judgment debtor being actually put under oath. At a post-judgment deposition, the plaintiff or his attorney is able to ask the debtor about financial resources, including bank accounts, account numbers, and other non-exempt property holdings that could be utilized to pay off the judgment.

The subpoena duces tecum portion of the Notice of Deposition is just a subpoena for the debtor's financial papers. The defendant can be required, by the subpoena, to bring banking account information, IRS tax statements, in addition to documents pertaining to the financial situation of the defendant.

A lot like the Written Interrogatories, the Notice of Deposition is a collection method that may be enforced with a court order and ultimately, if the refusal to attend continues, contempt of court.

Conclusion

Even though Texas does not officially use a court proceeding referred to as a judgment debtor exam, we do have two discovery mechanisms which achieve the same result. Utilizing the Written Interrogatories in Aid of Judgment along with a Notice of Deposition with Subpoena Duces Tecum, an aggressive plaintiff can easily accomplish the identical outcome as collectors in states having a judgment debtor's exam ... he'll get his judgment paid off.