Answer FileBusiness Litigation

How do I collect a judgment against a business in California?

The answer, cited

A California money judgment is enforceable for ten years and renewable (Code of Civil Procedure sections 683.020, 683.110), accruing ten percent annual interest. Collection tools include bank levies, till taps at business premises, judgment liens on real and personal property, debtor examinations under oath, and assignment orders reaching receivables.

Winning is half the case; the Enforcement of Judgments Law supplies the other half. Recording an abstract of judgment with a county recorder creates a lien on the debtor's real property there (Code of Civil Procedure section 697.310), and a filing with the Secretary of State liens business personal property. A writ of execution lets the sheriff levy bank accounts or conduct a till tap or keeper at a business's premises, seizing receipts. A judgment debtor examination (section 708.110) puts the debtor's principals under oath about assets, and third parties holding assets can be examined too. Assignment orders (section 708.510) capture streams the sheriff cannot grab — accounts receivable, royalties, commissions. Judgments earn ten percent annual interest (section 685.010) and last ten years, renewable before expiration (sections 683.020, 683.110). If assets were shuffled away, the Uniform Voidable Transactions Act (Civil Code section 3439 et seq.) reaches transfers made to defeat creditors, and alter ego doctrine can, in proper cases, add the individuals behind an emptied shell.

Authority: Cal. Code Civ. Proc. § 683.020

Legal information, not legal advice.

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