California Debt Collection Blog

In California, a keeper levy can be a very effective method to collect debts from businesses. When a creditor has a judgment, California Code of Civil Procedure § 700.070(c) authorizes the sheriff to install a “keeper” at the debtor’s place of business. The keeper (usually the sheriff) is empowered to take custody of the debtor company’s physical assets, which usually involves taking possession of all cash and checks on site. This includes any money that is in the cash register or “till”, as well as any money that may be ...

If you have a judgment in California, you can record a judgment lien by filing a Notice of Judgment Lien with the California Secretary of State, or by serving the debtor with a debtor examination order. These liens attach to much of the debtor’s personal property. This means that the debtor’s personal property cannot be transferred “free and clear” without first satisfying your judgment. However, judgment liens against personal property are often ineffective as a means of collection. This is because, unlike real property, most personal property is difficult to ...

When attempting to collect debts from customers or borrowers in California, it is easy to become frustrated and tempting to harass the debtor into paying the debt. However, this, along with a number of other common practices, must be avoided during the debt collection process. If you have not reviewed your collection process with a business attorney, you should do so. It is possible that your practices are in conflict with one of numerous laws protecting debtors and could expose you and/or your company to liability, particularly in California. Below ...