Abstract of Judgment
A Summary of the judgment. We often use abstracts issued under Code of Civil Procedure
§674 as a method of judgment collection. When a properly prepared abstract of judgment
is recorded with the county recorder, by operation of law it creates a general involuntary
lien on the all real property vested in the name of the judgment debtor Code of
Civil Procedure §697.340.
Acknowledgment of Assignment of Judgment
This is the instrument required under Code of Civil Procedure §673 to transfer title
of a judgment to an assignee of record. When this instrument is filed with the Court,
the Assignee of Record (ARS Legal Recovery Service) becomes the Judgment Creditor
under Code of Civil Procedure §680.240 and may enforce the judgment against the
judgment debtor. The first step in our post judgment enforcement process is to file an
Acknowledgment of Assignment of Judgment with the Court.
Acknowledgment of Satisfaction of Judgment
The document we file with the court after we have collected on a judgment that evidences
partial or full payment of the judgment. When this document is recorded in the County
Recorder’s office it releases all judgment liens created under a recorded abstract
of judgment within the county. When we need to evidence a partial collection of
a judgment we file a partial satisfaction as defined by Code of Civil Procedure
§724.120. When we collect a judgment in full, we file a full satisfaction of judgment
under Code of Civil Procedure §724.060. When evidencing a collection of a spousal
or child support judgment we file our satisfaction under Code of Civil Procedure
§724.250.
Affidavit of Identity
A declaration by the judgment creditor that the judgment debtor is also known by
other names. Sometimes a judgment debtor uses several different names and the judgment
is only enforceable against the name of the judgment debtor as it appears on the
judgment. Code of Civil Procedure §680.135 provides a method to add additional aliases
of the judgment debtor to a Writ of Execution or Abstract of Judgment. It is critically
important to include all name variations when enforcing a judgment. The 9th Circuit
Court decided that a title company was not liable to pay a lien recorded in the
name of David Elliot, when the real estate was vested as David Elliott. [198 Cal.App.3d
666, 244 Cal.Rptr. 13].
Assignee of Record
The party (ARS Legal Recovery Service) that takes title to a judgment under Code of
Civil Procedure §673 and becomes the judgment creditor under Code of Civil Procedure
§680.240. The Assignee of Record has all of the rights to enforce and collect the
judgment against the judgment debtor under the Enforcement of Judgments Laws (EJL).
Assignment Order
This powerful judgment collection technique is provided under Code of Civil Procedure
§708.510 and allows a judgment creditor to intercept royalties, commissions and
other future payments which would normally be paid to the judgment debtor. We often
use assignment orders to collect judgments against landlords who receive rental
income or real estate agents who receive commissions that cannot be garnished under
a Writ of Execution. Assignment orders must be obtained through a noticed motion,
and are generally more complicated than most other judgment enforcement procedures.
Automatic Stay
When a Judgment Debtor files for protection under the United States Bankruptcy Code,
the filing of the petition automatically stops all collection efforts against the
judgment debtor pending determination of the judgment creditors’ rights. Under certain
circumstances we can file an adversary proceeding in the Bankruptcy Court in an
attempt to exclude certain debts or all debts from the bankruptcy discharge so that
we can continue to enforce the judgment against the judgment debtor even after Bankruptcy.
Adversary Proceeding
A special lawsuit that is filed in the Bankruptcy Court when a dispute arises between
the judgment creditor and judgment debtor or trustee. We often file adversary proceedings
under 11 USC §523 to determine dischargeability of a particular debt. This allows
us to continue to enforce the judgment even after a Bankruptcy discharge. We can
also file adversary proceedings under 11 USC §727 which provides that all of the
judgment debtors debts are enforceable after the bankruptcy proceeding.
Bench Warrant
An order by the court directed to a law enforcement agency to arrest a person for
disobeying a subpoena or failing to appear before the Court as ordered. When a debtor
fails to appear as ordered for a Judgment Debtor Examination we ask the Court to
issue a bench warrant. If the debtor is arrested and posts bail, we can levy on
the bail under a Writ of Execution.
Case Law
Laws created by earlier judicial decisions regarding the same arguments. Our legal
system follows the doctrine of stare decisis which means to rely on earlier decisions
where the same points arise again. For example, in the post judgment enforcement
field
we often make reference to cases such as Young v. Keele [188 Cal.App.3d 1090, 233
Cal.Rptr. 850] which allows a judgment creditor “the widest scope for inquiry concerning
property and business affairs of the debtor” during a judgment debtor examination.
Certified Copy
A duplicate of an original document certified to be an exact replica of the original
document.
Conformed Copy
A filed copy of an original document.
Claim of Exemption
When a judgment debtor files a claim of exemption pursuant to Code of Civil Procedure
§703.510 et seq. with the levying officer indicating that the pending judgment enforcement
procedure is reaching exempt assets or if the judgment debtor claims the exempt
property is necessary to support the judgment debtor or the judgment debtors dependents.
The claim of exemption must be made under penalty of perjury by the Judgment Debtor
and is subject to opposition under Code of Civil Procedure §703.550 by the Judgment
Creditor.
Community Property
California is a community property state in that all property acquired between husband
and wife or registered domestic partners becomes property of the community estate.
Code of Civil Procedure §695.020 provides that Community property is subject to
the enforcement of a money judgment. The judgment collector can apply for a court
order under Code of Civil Procedure §706.109 to garnish the wages of the debtors
spouse to collect a judgment. Another judgment collection technique is to levy on
the bank account of a debtors spouse. Code of Civil Procedure §700.160 provides
the judgment collector with the authority to do so.
Default Judgment
A judgment entered against a defendant who has failed to answer or otherwise defend
a lawsuit. Default judgments are usually obtained when the defendant was properly
notified of the court hearing, but failed to appear. Also see: Judgment
Discovery
The process of learning something that was unknown. The judgment creditor often
uses post judgment discovery methods such as subpoenas or interrogatories to obtain
further information about the assets and income of a judgment debtor. One of the
judgment creditor's most widely used methods of discovery in judgment collection
is the judgment debtor examination. This tool allows the judgment collector to apply
for an order requiring the judgment debtor to appear before the court for questioning.
Code of Civil Procedure §708.110 authorizes the order, and if the judgment debtor
fails to appear at the hearing, the judgment debtor may be arrested and brought
before the court to face a contempt charge under Code of Civil Procedure §708.170.
Fraudulent Transfer
See Uniform Fraudulent Transfer Act - Judgment Debtors often try to hide their assets.
One method they like to attempt is to transfer property to a friend or family member
with little or no consideration in an attempt to place the property beyond the reach
of their creditors. A skilled judgment collector is able to identify such transfers
and move the Court to set aside the fraudulent transfer and allow the property to
be seized to satisfy the judgment.
Fraudulent Conveyance
See Fraudulent Transfer.
Judgment
See Money Judgment. ARS Legal Recovery Services only enforces Money Judgments.
Judgment Creditor
The party who is owed the money on a judgment. When ARS Legal Recovery Services
files
our Acknowledgment of Assignment of Judgment, we become the Judgment Creditor under
Code of Civil Procedure §680.240.
Judgment Debtor
The party who a judgment is entered against.
Judgment Lien
A lien created by the judgment creditor that attaches to the non-exempt interest
of the judgment debtors property. The most common lien created by a judgment collector
is that of an Abstract of Judgment. When the Judgment Debtor is served with an Application
and Order to Appear, service of the order creates a secret lien on all property
of the judgment debtor for 1 year and XX10XX days.
Keeper Levy
A judgment collection procedure under Code of Civil Procedure §700.070 where the
judgment creditor sends a keeper, (usually a sheriff) into a debtors business to
take over operation of the business. The keeper will collect all money that comes
into the business and deliver it to the judgment creditor. This procedure can be
very frustrating for a judgment debtor and often will lead to some form of voluntary
payment arrangement.
Lien
See Judgment Lien.
Memorandum of Costs
A form adopted by the California Judicial Council which in compliance with Code
of Civil Procedure §685.070 allows the judgment creditor to add allowable costs,
interest and evidence all credits received. We generally file this document in conjunction
with the issuance of a Writ of Execution allowing us to include all costs and interest
on the Writ of Execution.
Money Judgment
An order from the court ordering the judgment debtor to pay the judgment creditor
a specific amount of money. It is not unlawful for the judgment debtor to disobey
this order by not paying. Judgment creditor's have a wide range of collection techniques
available to us under California’s Enforcement of Judgment Laws (EJL) which allow us to
force debtors to pay their judgments.
Uniform Fraudulent Transfer Act
Adopted in 1984 to replace the Uniform Fraudulent Conveyances Act, The Uniform Fraudulent
Transfer Act provides uniform penalties in many states against debtors who fraudulently
transfer assets to avoid creditors. Judgment Debtors often deed real property to
a friend or family to try and avoid paying a debt. The UFTA provides a method for
the judgment creditor to attack suspicious transfers and ask a Court to undo the
transfer so that the judgment creditor can seize the transferred property.
Writ of Execution
A Court order directing a levying officer or sheriff to enforce a money judgment.
A Writ of Execution issued under Code of Civil Procedure §699.520 is a very powerful
tool, and is the core of many basic judgment enforcement techniques. With a valid
Writ of Execution, the sheriff or levying officer can be directed to garnish a debtors
wages under Code of Civil Procedure §706.020, seize funds in the debtors bank account
under Code of Civil Procedure §700.140, seize and foreclose upon real property under
Code of Civil Procedure §700.015, and much more.
This collection glossary is for informational purposes only and should not be
considered legal advice.
If you require legal advice, please contact an attorney.