Legal Definitions - turnover order

A turnover order is a court order that compels a party, typically a debtor, to hand over specific assets to another party, usually a creditor, to satisfy a judgment or debt. This type of order is often used when a judgment has been issued, and the debtor has not voluntarily paid the amount owed. The court identifies non-exempt assets belonging to the debtor and orders them to "turn over" those assets so they can be sold or directly transferred to the creditor.

Here are some examples illustrating a turnover order:

• Example 1: Collecting on a Business Debt

  Imagine a small manufacturing company, "Innovate Tech," owes a significant sum to its raw material supplier, "Global Components," for unpaid invoices. Global Components sues Innovate Tech and wins a judgment for $100,000. Innovate Tech, however, claims it has no cash to pay. Global Components' lawyers discover that Innovate Tech has a warehouse full of finished, unsold electronic gadgets. Global Components can petition the court for a turnover order. If granted, the court would order Innovate Tech to surrender a specific quantity of its electronic gadgets to a court-appointed official, who would then sell them, and the proceeds would go towards satisfying the $100,000 debt owed to Global Components.

• Example 2: Recovering Personal Property

  Sarah lent her antique diamond necklace, valued at $25,000, to her friend, Emily, for a special event. Emily, however, refused to return it, claiming it was a gift. Sarah sued Emily and won a court judgment confirming her ownership and ordering the necklace's return. When Emily still refused to hand it over, Sarah's attorney could seek a turnover order. The court would then legally compel Emily to physically surrender the antique diamond necklace to Sarah, ensuring the judgment is enforced and Sarah recovers her property.

• Example 3: Enforcing a Child Support Judgment

  Mark owes several years of unpaid child support to his ex-spouse, Lisa, accumulating a judgment of $50,000. Mark has a valuable collection of rare comic books, which he keeps hidden. Lisa's attorney, after discovering the existence and location of this collection, could request a turnover order from the court. The court would then order Mark to hand over his comic book collection to a designated official. The collection would be appraised and sold, with the proceeds directly applied to the outstanding child support debt owed to Lisa, thus enforcing the financial judgment.