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California Creditors' Rights: Executing a Judgment

creditor-rights.jpgIn many cases, creditors are forced to go to court to seek a judgment against a debtor. Once you obtain a judgment, the debtor may simply decide to pay you what is owed. If so, that is great. However, this is often not what happens. In fact, getting a legal judgment is often closer to the beginning of the debt collections process than it is to the end of it. There is good news: a judgment gives creditors many powerful legal tools that can be used to seek repayment. Of course, it is important to understand certain basic information regarding executing judgments in California as a creditor.

Four Things Creditors Should Know About Judgments

1. They are not self-enforcing: Once a judgment is entered, some debtors will repay. There is incentive to satisfy a judgment. After all, an outstanding judgment will adversely affect a debtor's ability to borrow more money in the future. However, in many cases, if you do not act, you will not receive repayment.

2. Legal time limits matter: The state of California has a statute of limitations on collecting outstanding judgments. While you likely will have plenty of time to do so, it is important to recognize this time limit. There is no benefit in waiting. It is better to take enforcement action as soon as possible. If you wait, you may eventually lose your legal rights.

3. The judgment can be enforced in many ways: A judgment is such powerful debt collection tool because it grants creditors access to many different collection methods. For example, after receiving a judgment from a California court, a creditor may be able to seek enforcement through garnishments, attachments, property liens, property levies, bank account liens and even contempt of court proceedings.

4. Identifying specific assets will help you collect: Even with all the legal tools available, collecting on a judgment can still be difficult. One of the best ways to get it done is to identify a specific asset for which you can seek collection. In some cases, you will be able to collect on the identify assets directly. This strategy can also encourage the debtor to do what it takes to get the judgment paid off.

Contact Our Office Today

Our dedicated San Jose creditors' rights lawyers have extensive experience handling California bankruptcy cases. If your company has any questions about executing a judgment or creditors' rights in general, please do not hesitate to reach out to our office today. We will review your case free of charge, with no further obligations to you. At Diemer, Whitman & Cardosi, LLP, we proudly represent creditors throughout Northern California, including in San Francisco, Mountain View, and Cupertino.

Source:

https://www.ftb.ca.gov/Archive/Professionals/Taxnews/2010/April/Article_12.shtml

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