Enforcing Judgments During an Appeal

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 take steps to collect the judgment until the appeal is complete.  If the appeal is decided in the creditor’s favor, the creditor can then make demand upon the bond to recover the full amount owing on the judgment, plus post-judgment interest.  See California Code of Civil Procedure § 917.1.

If the debtor does not post the bond described in CCP § 917.1, the creditor can continue to enforce the judgment as if the appeal did not exist.

The Wallin Firm is experienced in this area and regularly enforces judgments in Orange County, Los Angeles County, Riverside County and throughout California despite the existence of ongoing appeals.