A Shortcut in Enforcing Judgments in California
A Shortcut In Enforcing Judgments In CaliforniaWinning a lawsuit and being awarded money damages is not the end of the legal battle. Prevailing parties still have to collect. Losing parties may not have funds to pay or may declare bankruptcy or hide assets to avoid payment. One solution to collection is the Noticed Motion for Assignment Order. It allows Judgment Creditors to get direct rights to future payments to be made to the Judgment Creditor by a third party (e.g., debtor's employer pays you directly out of debtor's salary). Cal. Code of Civ. Procedure (CCP) ? 708.510, et seq.
The court orders an assignment to the Judgment Creditor or to a Receiver, of the Judgment Debtor's right to future payments due from a third person (eg. Working spouse's income.) Faster and often more effective than a wage garnishment or other enforcement proceeding the procedure begins with filing and service of the Notice of and Motion for Assignment Order and Order Restraining Judgment Debtor.
Why Assignment Order Is Better Than Wage Garnishment or Forced SaleAn Assignment Order can reach assets normally not subject to execution (e.g. out of state property, the nonexempt loan value of a life insurance policy.) It permits the court to assign all future payments directly to the Judgment Creditor with interest (10% per year) and costs, in full. No receiver or levying officer is required. CCP ? 685.010(a).
The Judgment Debtor is entitled to file a Claim of Exemption in which s/he tries to show the court that a smaller sum or no amount at all should be assigned.
Only 75% of the earnings of a Judgment Debtor are exempt from a withholding order or earnings assignment order. CCP ? 704.070(b)(2).