Using Receivers to Collect Judgments in California

California law provides many judgment enforcement tools.  For example, the Code of Civil Procedure sets forth straightforward processes to levy on bank accounts, garnish wages, and create liens against real property.  However, sometimes these straightforward techniques do not accomplish the creditor’s goal.  For instance, the creditor may seek to obtain and/or sell an asset of the debtor that cannot easily be reached using “traditional” methods.  In such situations, the creditor should consider seeking the appointment of a receiver.

In California, the court may appoint a receiver to enforce a judgment upon a showing by the judgment creditor that, “considering the interests of both the judgment creditor and the judgment debtor, the appointment of a receiver is a reasonable method to obtain the fair and orderly satisfaction of the judgment.”  See CCP Section 708.620.

For example, a receiver may be appointed in the following situations:

1. A writ of execution cannot reach certain property and other remedies are inadequate (e.g., receiver may be appointed to sell patents, websites, trademarks or copyrights).
2. To enforce a charging order against a partnership or limited liability company.
3. To preserve the value of perishable property levied upon under writ of execution.

When a debtor has the ability to pay the judgment, but the debtor’s assets are difficult to reach using standard techniques, consider seeking the appointment of a receiver.