What Happens When Seized Funds Are Needed to Pay Employees or Vendors?

 Posted on January 28, 2026 in Cash & Vehicle Seizures

When business funds are seized through a cash seizure, the effects can be immediate. Payroll may be due. Vendors may be waiting on payment. Rent, taxes, and contracts do not pause just because money has been taken.

In 2025, the U.S. Marshals Service reported that law enforcement agencies received 9,973 seized assets and disposed of 12,381 assets through forfeiture proceedings. Seized property moves through the system while owners are left waiting for decisions.

If your business funds have been taken and you still need to operate in 2026, our El Paso, TX asset forfeiture defense lawyer can help explain what may be possible under Texas law.

Why Are Business Funds Seized in Texas Asset Forfeiture Cases?

In Texas, law enforcement can seize money if they believe it is connected to certain criminal activity. This can happen even if no criminal charges have been filed against the business owner.

Under the Texas Code of Criminal Procedure Chapter 59, the forfeiture case is filed against the property itself. The state claims the money is tied to illegal conduct, and the owner must then challenge that claim in court. For businesses, this often means losing access to operating funds without warning.

Can Seized Funds Be Used To Pay Employees or Vendors in Texas?

In most cases, seized funds cannot be used to pay employees or vendors while the forfeiture case is pending. Once money is taken, it is usually held by the state until a judge decides whether it must be returned or permanently forfeited.

This can create serious pressure on a business. Even funds earned through legitimate work may be locked up until the case ends.

What Problems Can Seized Funds Create for a Business?

When operating funds are seized, problems can arise quickly and spread beyond the legal case. Common issues include:

• Missed payroll and employee hardship

• Vendor disputes or broken contracts

• Late rent, loan, or tax payments

• Interrupted business operations or temporary closures

• Damage to business credit or long-standing relationships

Even short delays can cause lasting issues, like damage to a company’s reputation.

Can a Business Owner Challenge the Seizure of Funds in Texas?

Texas law allows owners to contest asset forfeiture. The state must prove that the seized funds are connected to illegal activity.

A defense may show that the money came from lawful business operations or that the seizure went beyond what the law allows. Timing is critical. Strict deadlines apply, and missing them can limit recovery options.

How Long Do Texas Asset Forfeiture Cases Take?

Asset forfeiture cases often take months and sometimes longer. During that time, the business may have no access to the seized funds.

The length of the case depends on the facts, the amount seized, and how aggressively the case is pursued. This delay is why early legal action is important when payroll and vendor payments are at risk.

Are There Ways To Reduce Business Damage During an Asset Forfeiture Case?

Although funds are usually not released during the case, legal strategy still matters. A lawyer may be able to challenge the seizure quickly, narrow what was taken, or push for faster court review.

In some situations, showing how the seizure affects employees and vendors can help frame the urgency of the case, even if it does not guarantee early access to the funds.

Why Is Legal Representation Important in Texas Asset Forfeiture Cases?

Most asset forfeiture cases are civil cases, not criminal trials, but the impact can be severe. Businesses face financial pressure while trying to defend their rights.

An attorney can review whether the seizure followed the law and present records showing that the funds came from legitimate business income. They can also challenge claims that are overbroad or not supported by evidence. Strong legal advocacy can affect how the case moves forward and whether funds are returned.

Schedule a Free Consultation With Our El Paso County, TX Asset Forfeiture Defense Attorney

When seized funds threaten your ability to pay employees or vendors, Spencer & Associates can help you understand the laws that govern asset forfeiture and how to fight it. Attorney Spencer has more than 30 years of legal experience. As a strong trial lawyer and litigator, he knows how to challenge aggressive seizures and fight for the return of lawfully earned funds.

Call 469-283-6126 today to schedule a free consultation with an El Paso, TX asset forfeiture defense lawyer you can trust. We’ll discuss your situation and learn what options may be available to protect your business.