How Is the Receiver Paid?

The court authorizes the Receiver’s fees to be paid by the judgment debtor from the money collected, not by the plaintiff / judgment creditor. Typically, the Receiver’s fees will be set at 25% of the funds collected, plus expenses. In that case, the court’s order authorizes the Receiver to seek recovery of the entire judgment, plus an additional 25% for the Receiver’s fees and expenses.

If the Receiver recovers less than 100% of the judgment, then the Receiver delivers 75% of the funds collected to the judgment creditor. The remaining 25% plus expenses are paid to the Receiver.

If the Receiver does not collect any funds, then the Receiver does not receive any fees. The Receiver’s fee is on a contingency basis. If no funds are recovered, the judgment creditor does not owe the Receiver any money, even for receivership expenses. From time to time, there may be exceptions to this arrangement. The fees and expenses are spelled out in the court’s receivership appointment order.

Under Texas law, receivership fees are considered costs of court, like filing fees and court reporter expenses.