Have you or your company won a money judgment in California? If so, do you know the basics of collection? Although we encourage California judgment creditors to enlist the help of an expert agency like ours, we understand that some creditors prefer to attempt collecting on their own.
Below are the basics of collecting judgments in California, also known as enforcement. Perhaps you’ve tried all the things we describe but have still failed to collect. That is where we come in. The Judgment Collectors team is standing by to take a look at your case. We are more than happy to help.
Immediately Following the Judgment
In the days and weeks following a judgment entered on your behalf, there are some initial things to do. First and foremost is waiting. Why wait? Because the judgment debtor must be given time to appeal. A typical waiting period is 30 days, especially for small claims cases.
This is also a good time to start developing a strategy for locating assets. More on that in the next section. Remember that assets are key to successful collection efforts. They are the best leverage you have to encourage the debtor to pay.
At the conclusion of the waiting period, it is time to contact the debtor. Your best bet is to make contact in writing, through your attorney. The purpose: to formally request payment. Your first contact represents your first attempt to enforce.
Searching for Assets
Searching for assets in a California collection case is pretty straightforward. It is similar to searching for assets in other states. You, your attorney, or your collection agency can immediately begin scouring public records. You can start looking at social media. If you have access to proprietary databases, they can be an immense help as well.
You can also file an Application and Order for Appearance and Examination, also known in California as the EJ-125. A successful application essentially results in a formal debtor’s exam. The debtor is compelled to come to court where they must answer questions about income and assets.
Choose Your Enforcement Strategies
With information about income and assets, you can begin choosing your enforcement strategies. Be sure to look at every option allowed in California. Your choices include:
- Wage Garnishment – A writ of execution against the debtor’s wages would allow you to garnish said wages. The writ would be submitted to the local sheriff who would then enforce it.
- Bank Levy – A writ of execution against the debtor’s bank accounts would allow you to garnish them as well. The same deal applies – you submit the writ to the local sheriff for execution.
- Property Liens – California allows judgment creditors to file liens against real property. Doing so would be a matter of recording an Abstract of Judgment in the county where the property is located. That document is filed with the county court.
- Till Tap and Keeper Levy – If your debtor is a business, you can request either a till tap or keeper levy. Both options involve seizing cash receipts from a business.
One last thing to know about collecting judgments in California is the 10-year statute of limitations. You have 10 years from the date the county clerk records the judgment to collect. If you do not succeed, you can renew the judgment for another 10 years by filing the appropriate paperwork with the original court.
If all of this sounds too complicated for you, Judgment Collectors has you covered. Let us know what you are working on. Perhaps we can collect on your behalf.