Court Bonds in Texas: What Attorneys Should Have Ready Before You File

Texas doesn’t give judgment debtors much breathing room. A creditor can initiate garnishment and turnover proceedings the moment a judgment is signed, even though execution itself waits 30 days. That timeline puts attorneys in a position where the bond paperwork needs to be ready almost before the ink dries.

If your client is heading into a Texas trial or appellate filing that will require a court bond, here’s what to have in hand before you call the surety.

Quick answer

Texas attorneys requesting a court bond should be ready with a certified copy of the judgment or motion, financial information on the principal, and a clear calculation of the bond amount under the Texas Rules of Appellate Procedure and the Texas Civil Practice and Remedies Code. The most common Texas court bonds are supersedeas, sequestration, garnishment, attachment, replevin, and injunction bonds.

The most common Texas court bonds

The right bond depends on the relief being pursued.

• Supersedeas bond (TRAP Rule 24). Stays enforcement of a judgment during appeal.
• Sequestration bond (Tex. Civ. Prac. & Rem. Code Ch. 62). Required before the court will issue a writ of sequestration to seize property pending the outcome of a lawsuit.
• Garnishment bond. Filed by a creditor seeking a pre-judgment writ of garnishment.
• Attachment bond. Required for pre-judgment attachment of a debtor’s assets.
• Replevin and counter-replevin bonds. Used to take or retain possession of disputed personal property.
• Injunction bond. Required when seeking a TRO or temporary injunction.
• Cost bond. Sometimes required as security for costs, particularly from out-of-state plaintiffs.

Each of these has its own statutory framework, and each has its own underwriting profile.

What to gather before you call the surety

For most Texas court bonds, the surety will want the following:

• A certified copy of the judgment, petition, or motion that triggers the bond.
• The exact bond amount with backup showing how you calculated it.
• Financial information on the principal. For larger bonds, this means a recent balance sheet, tax returns, or a personal financial statement. For supersedeas bonds, you’ll need clear documentation if you’re invoking the net worth cap.
• Indemnity from the principal, and sometimes from related entities or individuals.
• Collateral information if liquid collateral is required. For most appeal bonds in Texas, sureties expect collateral in the full bond amount unless the principal is a strong financial credit.

Getting this packet together before you call saves days. Sureties can’t issue a bond on a verbal description of a judgment.

Texas quirks worth knowing

A few features of Texas practice consistently catch out-of-state counsel.

The net worth cap on supersedeas bonds. Under Texas Civil Practice and Remedies Code Section 52.006 and Texas Rule of Appellate Procedure 24.2, the supersedeas amount for a money judgment cannot exceed the lesser of 50 percent of the judgment debtor’s current net worth or $25 million. This can dramatically reduce the bond required, but only if you have audited or otherwise credible net worth documentation. The judgment debtor bears the burden of proof.

Attorneys’ fees usually aren’t superseded. Attorneys’ fees awarded as costs are not part of compensatory damages and don’t need to be bonded. The exception: when fees are themselves an element of damages, such as a breach-of-contract claim for unpaid fees, they’re compensatory and must be included.

The 30-day rule isn’t a safety net. Execution waits 30 days, but garnishment and turnover orders don’t. If your client doesn’t supersede promptly, a creditor can start chasing assets immediately after the judgment is signed.

The surety must be approved by the trial court clerk. Before crafting bond language, confirm with the clerk that the proposed surety is approved for the dollar amount in question. Some clerks maintain their own list of acceptable corporate sureties.

Where bond timing breaks down

The breakdown usually happens in one of three places: the client hasn’t gathered financial documentation, counsel has miscalculated the bond amount (often by including ineligible attorneys’ fees), or the surety wasn’t given enough lead time to underwrite collateral. None of those problems are difficult to solve. They just need to be addressed early.

If you’re staring at a Texas judgment or pre-judgment remedy and need a court bond fast, Jurisco can quote and issue bonds across the state. Contact us with the basics and we’ll let you know exactly what else we need.