California Debt Collection Blog

If the debtor appeals the entry of judgment, what is the appeal’s impact on the creditor’s efforts to enforce the judgment?  In California, the answer is “no impact” unless the debtor posts the bond required by California Code of Civil Procedure § 917.1. If the debtor files an appeal, the debtor can stay enforcement by posting a bond equal to 1.5 times or 2.0 times the amount of the judgment (e.g., a bond of $150,000 or $200,000 for a judgment of $100,000).  If such a bond is posted, the creditor cannot ...

A key development for creditors seeking to collect business debt or collect judgments in California: In July of 2015, the Uniform Voidable Transactions Act was signed into California law. This new law has implications for both debtors and creditors, as it modifies and replaces the former Uniform Fraudulent Transfer Act. Traditionally, this law set forth the conditions that constituted a transfer as fraudulent, along with the remedies available to creditors with respect to such fraudulent transfers. An example of said remedies include the voiding of the transfer. The new law stipulates the burden ...

Successful debt collection in California often hinges on whether the creditor obtains collateral for the debtor's obligations.  Creditors can protect their interests by obtaining liens against debtors' personal property and, if necessary, foreclosing the liens to take possession or force sales of the collateral.  One category of such personal property is patents held by the debtor company.  As with other intellectual property, the process for securing and foreclosing on patent liens is unique. In order to secure/obtain a lien against the debtor’s patent, the creditor must procure a written agreement with the debtor to this effect.  Thereafter, to perfect ...