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Judgment Enforcement
Length of Time
Valid
In California, a
judgment may be enforced for a period of ten years from date
of entry. A judgment may be renewed for a period of ten (10)
years after it has been entered for a period of five (5) years
from the date of entry. The life of a Judgment therefore may
be extended beyond the ten year period if it is timely
renewed.
Judgments may be enforced (collected)
in a variety of ways. An Abstract of Judgment recorded with
the County Recorder in a county where defendant owns real
property may create a judgment lien. This may require payment
if certain real property is sold or refinanced. Other lien and enforcement mechanisms
may be available in specific circumstances. If a debtor is a
plaintiff in a different lawsuit, or a beneficiary in an
estate proceeding, the creditor may be entitled to a lien
against a recovery from the lawsuit or inheritance.
Judgments may also be
enforced by garnishment of wages. By following proper
procedures, a judgment creditor may be permitted to obtain up
to 25% of net pay during each pay period. However, this remedy
may be subject to a claim of exemption by individuals. The
Court may determine that all or a larger portion than 75% is
necessary for the support and maintenance of the defendant and
his family members. In addition, in a case where the defendant
is currently subject to a current child support order, the
creditor may have to wait until the child support order
expires, or may receive less than 25% of net earnings per pay
period. Other personal
property which may be subject to levy are bank accounts,
property in a safe deposit box, accounts receivable, and many
other items. A judgment creditor may also create a lien
against a judgment debtor's business equipment and inventory
by filing a lien with the Secretary of State. A post-judgment debtor examination may
be used to obtain information about the judgment debtor's
assets or employment status. This process requires a Court
Order requiring the debtor to appear in Court on a specific
date. A representative of the creditor/plaintiff must appear
to conduct the examination. The debtor must respond under oath
to the judgment creditor's questions regarding assets. The
questions must be reasonable. If the defendant does not
appear, some Courts may issue an arrest warrant (bench
warrant), sometimes only at the request of the
creditor/plaintiff. This request is viewed as an extreme
measure by many creditors, and great caution should be used to
be assured that records are accurate, and that identity and
personal service of the Court Order to appear are absolutely
certain. Always discuss such legal matters with your legal
counsel. There are many
exemptions from attachment of personal property. For example,
property that is necessary for the support of a defendant and
his family or dependents may be exempted, or not subject to
attachment by judgment creditors if claimed by the judgment
debtor. An defendant may claim a homestead exemption, which
may be higher if the debtor or his spouse are over the age of
65 years. A debtor may also be entitled to many other
exemptions, which are discussed generally beginning with Code
of Civil Procedure Section 703.010, which is linked below for
illustration.
Judgment Interest
Currently, California allows interest at the rate
of 10% per annum on the principal amount of a money judgment
remaining unsatisfied (Code Of Civil Procedure Section
685.010).
Satisfaction of Judgment
When a judgment debtor has paid a claim, the
creditor/plaintiff must file an "Acknowledgement Of
Satisfaction of Judgment". This is a document which
acknowledges either partial or full payment of the judgment.
(If the plaintiff fails to file this within 14 days after a
demand, a penalty may apply.) The judgment and the
satisfaction of the judgment are items of public record and
may be noted in consumer reports. Creditors should exercise
care to see that paid judgments are properly acknowledged.
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