California Debt Collection Blog

The writ of attachment application is a under-utilized commercial collection tool.  If the judge grants the application, the creditor can “freeze” most of the debtor’s assets, including bank accounts and real estate.  The mere filing of the application forces the debtor to respond and applies major pressure to the debtor and its business.  Most businesses cannot afford to have bank accounts frozen, so unlike other collection steps which the debtor may ignore, the debtor is unlikely to ignore the creditor’s attachment application.  It can often take months to obtain judgment ...

A quick example.  Our law firm represents a small business in Irvine, California.  Several of the company’s customers had not paid invoices, ranging in amount from approx. $200 - $20,000.  Prior to our firm’s involvement, the company’s accounting person had threatened to sue the delinquent customers, but no lawsuits were ever filed.  In California, and particularly in Orange County, California, it is quick and inexpensive to file a lawsuit to collect from a delinquent customer. To obtain payment as quickly as possible, it is crucial to maintain credibility.  In other words, ...

Two issues commonly appear regarding real property judgment liens (i.e., recorded Abstracts of Judgment):  (1) what happens when the debtor transfers the real property?, and (2) how is lienholder order of priority determined? Impact of Transfer of Real Property Real property encumbered by a judgment creditor’s Abstract of Judgment that is transferred or encumbered without satisfaction of the creditor’s lien remains subject to the lien - as if no transfer had occurred.  See Code of Civil Procedure § 697.390(a); see Dieden v. Schmidt, 104 Cal. App. 4th 645, 651-652 (2002). However, if the ...