How Many Applications for Receivership Can a Creditor Make? 

Applications to appoint a receiver are one method collections lawyers have to secure payment of judgments and other relief.  So, what happens if an application is successfully defended and the application is denied?

The law in Texas does not appear to be settled on what precisely the denial of an application means, and whether the applying party can re-apply for a receiver and when that application may be made is not clear.

If the application was technically defective in some way, is it possible that the applying party can simply remedy the defect and apply again?  What if the legal requirements for appointment of a receiver were not met.  For example, what if the applying party did not meet a substantive statutory requirement, such as the applying party failed to identify any specific non-exempt asset which the creditor cannot secure by ordinary process.  If the application is denied on such a basis, can the applying party simply re-apply and if so when?  Does the applying party have to then attempt to execute the judgment and fail, does the applying party have to do more investigative work or discovery?

The answers to these questions have not yet been answered by the higher courts in Texas, and they are ripe for presentation to the higher courts in Texas.  It is critical to anyone seeking or defending appointment of a receiver to seek out counsel familiar with receivership and well versed in receivership law.

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