Post Judgment Remedies

Post Judgment Remedies

Often Debtors having lost at trial or otherwise having a judgment entered against them – take all kinds of measures to avoid payment, including closing accounts, selling real or personal property; changing locations, and concealing and fraudulently transferring assets.

Usually “time is of the essence” to take post-judgment action to enforce the judgment due against the debtor to protect or client creditors rights and interests arising from the judgment entered. Some remedies are pursued as a matter of course (real and personal property filings) and others are initiated after assessment of the costs and likelihood of recovery.

In addition to pre-judgment remedies available to the creditor to levy upon assets, we use several post judgment remedies to assist in collection, including:

Real Property Liens: Immediately following entry of judgment, or office promptly files a certified copy or abstract of judgment in each county where the debtor resides or where may own real property. The filing an abstract of judgment creates a lien on real property owned by the debtor in that county which is superior to all subsequent security interests recorded against the debtor’s real property in that county. Abstracts of judgment are valid for ten (10) years an may be renewed for an two additional ten (10) year periods. If the debtor tries to sell or refinance the property, the creditor will be paid the judgment amount plus accrued interest from the escrow. Where sufficient equity exists in the real property the creditor can also initiate a judicial foreclosure action to compel the debtor to pay off the obligation or risk loss of the real property.

Judgment Lien on Personal Property, Inventory. Immediately following entry of judgment, or office promptly files a certified our office also file a Notice of Judgment Lien with the California Secretary of State. A judgment lien so filed creates a lien on personal property for California Debtors and property located in California including: accounts receivables, tangible chattel paper or promissory notes owed to the debtor, equipment, farm products, inventory, negotiable documents of title, and other personal property. The benefit of this filing is that should the judgment debtor seek to transfer, assign or encumber this personal property, the transfer will generally be subject to the judgment creditors lien. Usually a search by the transferee will disclose the existence of the lien which may restrict its transferability to a good faith purchaser. Where the debtor cannot sell, transfer, encumber or pledge this personal property it motivates the creditor to satisfy the judgment.

Order to Appear for Examination (Judgment Debtor Examination). Once judgment is entered, we engage in serving the Judgment Debtor or even Third Parties who have custody of assets owned by the Judgment Debtor to appear in Court and testify under oath about the nature and extent of their assets, liabilities, employment and other matters which can be levied upon to satisfy the Judgment. The Judgment Debtor and Third Parties must truthfully answer questions and bring relevant documentation to the Court. Failure to appear or meaningfully participate in the examination subject the judgment debtor to contempt proceedings and/or a warrant to require them to come to Court and truthfully answer the questions.

Wage Garnishment: As result of investigation or the judgment debtor’s exam, where the judgment creditor discovers facts concerning the debtor’s employment, on behalf of the judgment creditor our firm will initiate wage garnishment proceedings

Bank Levy: Whether the information is obtained through the debtor’s examination or through review of the creditors files and records relating to the Debtor, the creditor may levy upon bank accounts and safe deposit accounts in the name of creditor.

Till Tap or Keeper Levy: Upon proper application by our firm on the judgment creditors behalf, the Court may direct the sheriff to be stationed at the business to take all money on the premises to take possession of all moneys coming into the business in order to satisfy the judgment.