Asset discovery is a big aspect of the process of collecting judgments in Texas due to the fact that it is the primary method available for locating a debtor’s assets. Interrogatories play a major role in the post judgment discovery process.
However, there are some things you should understand about post judgment interrogatories before you begin. .
1. The prejudgment discovery constraints of Rule 190 of the Texas Rules of Civil Procedure do not apply to post judgment interrogatories.
Rule 190 fixes specific limits on the discovery process as it unfolds before a case goes to trial. Those limitations pertain to the time period during which you can pursue discovery, the number of questions you may ask in interrogatories, and the amount of time for a deposition. Post judgment interrogatories are not so limited. As a matter of fact, Rule 190.6 of the Texas Rules of Civil Procedure clearly exempts post judgment discovery from the Rule.
2. Any type of question ought to be permitted so long as it aids in enforcing your court order.
The key here is realizing that your questions must be designed with the specific objective to assist in the enforcement of your judgment. With that in mind, your questions need to be crafted to help you pinpoint whether your judgment debtor –
(A) has non-exempt property that is subject to seizure and sale to satisfy your judgment;
(B) has fraudulently transferred property in an effort to evade your judgment;
(C) may acquire any assets that will be subject to your judgment.
As long as you maintain your questions according to these objectives, you should not have any issues using post judgment interrogatories in Texas.
3. Your right to conduct post judgment discovery transfers to your successor or assignee.
The fact that you prevailed in court gives you the right to perform post judgment discovery in the first place. But, what occurs when you assign your award to a non-lawyer collection professional? Does the individual or company to whom you assign the judgment have the same right to make use of interrogatories as you do?
With a greater number of successful plaintiffs using non-lawyer judgment recovery specialists, that concern has come up. The answer in Texas is that your assignee possesses the same right to conduct post judgment discovery as you do. Rule 621a of the Texas Rules of Civil Procedure plainly states that the right to conduct discovery after a judgment “shall inure to … successors or assignees …”
4. In pursuing answers to post judgment interrogatories, you ought to keep clearly in mind which possessions are exempt and which are not.
Just because you have the right to search for the defendant’s assets after judgment does not mean you have a right to cross lines when it comes to the protection of exempt property in Texas. Texas does recognize quite a few exemptions so there is a lot of property your judgment debtor possesses which you just can not take to collect your judgment. You should be respectful of that distinction when delivering interrogatories to your defendant.
But, this does not mean you can not ask about all of your debtor’s assets and financial situation. Remember that just about any question should be acceptable so long as it is crafted to help you learn what property your debtor has along with whether any of his possessions are non-exempt and subject to your judgment.
5. You can not issue post judgment interrogatories to your debtor if the judgment has been suspended by a supersedeas bond.
A losing defendant in a Texas lawsuit may, of course, appeal the decision to a higher court. While the appeal is being pursued he can suspend the execution of the judgment by posting a bond with the clerk of the court. The bond needs to be payable to the plaintiff and is designed to protect the plaintiff against any loss or additional damage created by the appeal. Rule 24 of the Texas Rules of Appellate Procedure supplies more details on the bond and conditions for its use.
The bottom line is that you may not go ahead with post judgment interrogatories while the case is on appeal if the defendant files the bond to suspend the judgment. Nevertheless, if the appeal is made without the filing of a bond you are free to employ post judgment interrogatories to find information on your defendant’s assets.
Post judgment interrogatories are actually a great tool for pinpointing your debtor’s assets and establishing which of those assets are subject to your judgment. Use them wisely.
Harvey L. Cox founded the Texas Judgment Collection Center as a resource to help Texas judgment creditors collect their money judgments. He is also the author of How to Collect Your Own Judgment in Texas.