California Judgment After 10 Years – Renewal Guide

California civil judgments don’t last forever — but they can. If a debtor still owes you money and the ten-year deadline is approaching, renewal isn’t just an option. It’s the single most important move you can make to protect everything you’ve already built.

Here’s exactly how judgment renewal works in California, what the 2023 law changes mean for your specific judgment, and the step most creditors skip that grinds enforcement to a halt.

The 10-Year Deadline You Cannot Miss

Under California Code of Civil Procedure § 683.020, a civil judgment is enforceable for ten years from the date it was entered. Let that window close and the judgment expires — you won’t be able to levy a bank account, garnish wages, or force a property sale. The debt doesn’t disappear on paper, but your legal power to collect it does.

Renewal resets that clock — but how many times you can renew, and for how long, now depends on the type of judgment you hold.

If you’re not sure where your judgment stands right now, start with the full creditor’s guide to collecting a judgment in California.

Not All Judgments Renew the Same Way

This is where the law changed — and where creditors holding certain judgments need to pay close attention.

Most Judgments: Renewable Indefinitely

For the majority of civil money judgments — commercial debts, fraud judgments, larger personal obligations — the general rule still applies. Under CCP § 683.120(b), renewal extends enforceability for ten years from the date the renewal application is filed, and you can renew as many times as needed.

One catch: under CCP § 683.110(b), you cannot renew a judgment within five years of a previous renewal. So if you renewed in year six, your next renewal window doesn’t open for another five years — even if the ten-year period would allow it sooner. Plan accordingly.

Two Categories That Can Only Be Renewed Once — for Five Years

Effective January 1, 2023, California SB 1200 created a significant carve-out. The following judgment types can now be renewed only once, and the renewal extends enforceability for five years only (not ten):

  1. Medical expense judgments where the unpaid principal balance is less than $200,000
  2. Personal debt judgments where the unpaid principal balance is less than $50,000

“Personal debt” under the statute means money owed by a natural person arising from a transaction where the money, property, insurance, or services were primarily for personal, family, or household purposes. Consumer debt. Personal loans. That kind of obligation.

If your judgment falls into either of these categories, your one renewal opportunity is it. Once that five-year extended period expires, the judgment cannot be enforced further under these statutes.

There’s a compounding impact for these judgment types: SB 1200 also reduced the post-judgment interest rate on these same categories to 5% per annum (down from the standard 10%), for judgments entered or renewed on or after January 1, 2023.

Bottom line — if you hold a commercial judgment or a judgment above these thresholds, you’re in the more favorable category. If you hold a consumer debt or medical expense judgment, your renewal window is limited and you need to use it strategically.

What Judgment Renewal Actually Is (And What It Isn’t)

Renewing a judgment is not filing a new lawsuit. You are not re-litigating anything. No judge, no hearing, no opposing counsel.

The process is handled administratively by the court clerk. You file a form, pay a fee, and the judgment’s enforceability is extended. What you’re doing is preserving the legal power to collect a debt that was already decided by a court. Renewal keeps your enforcement tools intact.

When to File: Earlier Than You Think

You can file for renewal any time within the ten-year enforcement period, but you must do so before the tenth anniversary of the judgment date. There is no grace period. No extensions. Miss the deadline by a day and the judgment is gone.

Practically speaking: don’t wait until year nine. A clerical error, a lost filing, a courthouse delay — any number of things can derail a last-minute submission. If your judgment is seven or more years old, treat renewal as urgent.

How to Renew a Judgment in California: Step by Step

Step 1 — Complete Judicial Council Form EJ-190

The renewal process begins with the Application for and Renewal of Judgment (Form EJ-190). This form documents:

  • The original judgment amount
  • All interest accrued to date
  • Any recoverable enforcement costs
  • The new total judgment balance

Calculating accrued interest correctly matters. Standard California judgments earn 10% per annum under CCP § 685.010 (or 5% for the restricted categories described above). On a $100,000 judgment held for ten years at 10%, the accrued interest alone pushes the renewed balance above $260,000. Underreport it and you leave real money uncollected.

See the Judgment Enforcement Tools page for a breakdown of costs you’re entitled to recover and add to the renewal amount.

Step 2 — File with the Court Clerk

Submit the completed EJ-190 to the clerk of the court that entered the original judgment, along with the required filing fee. The clerk processes the renewal administratively — no hearing, no judge, no notice to the debtor at this stage.

Once the clerk enters the renewal, it is effective from the date of filing. The renewed judgment’s enforceability runs from that date: ten years for standard judgments, five years for the restricted categories.

Step 3 — Serve the Debtor and File Proof of Service

This step is mandatory — and it’s what stops enforcement cold if you skip it.

Under CCP § 683.160(a), after filing the renewal you must serve a Notice of Renewal of Judgment on the judgment debtor. Service must be made personally or by first-class mail. Proof of service must then be filed with the court clerk.

The notice uses a Judicial Council prescribed form and informs the debtor that they have 60 days to file a motion to vacate or modify the renewal.

Here is why this step cannot be treated as an afterthought: under CCP § 683.160(b), until proof of service is filed, no enforcement proceedings may be commenced on the renewed judgment. No levies, no garnishments — nothing beyond what would have been permitted without the renewal. The renewal is on the books, but it’s legally inert until you file that proof of service.

Serve promptly. File proof immediately. Then you’re clear to enforce.

Step 4 — Record the Renewal with Every County Recorder

This is the other step where creditors blow it.

If you previously recorded an Abstract of Judgment to place a lien on the debtor’s real property, that lien does not automatically carry over. You must record the renewal application with every county recorder’s office where you have an abstract on file.

Miss this step and your lien priority resets to the renewal date — not the original judgment date. Any creditor who recorded between your original abstract and your renewal now outranks you. In a real estate sale or refinance, priority is everything: senior position gets paid first, junior positions often get nothing.

One additional wrinkle: if the debtor attempted to transfer the real property before your renewal, you must personally serve the transferee with a copy of the renewal application and file proof of service within 90 days of filing, to preserve the existing lien on that property.

The rule is simple — record the renewal everywhere you recorded the abstract.

The Financial Bonus Nobody Talks About

When you renew, all accrued interest gets rolled into the new principal balance.

Under California law, that means you begin earning interest on the combined total of original principal plus accumulated interest. On a substantial commercial judgment, the daily accrual rate after renewal can be significantly higher than it was on the original judgment. The debt grows in your favor every day enforcement runs.

This is one of the strongest arguments for pursuing renewal aggressively — even when collection feels stalled — on judgments in the standard (non-restricted) category.

Protecting Your Real Property Lien

If the debtor owns real property in California and you recorded an Abstract of Judgment, you already have a lien. Renewal extends the life of that lien — but only if you record correctly in every relevant county.

Getting this right matters for two reasons:

  1. Lien priority — your position relative to other creditors is determined by your original recording date, not your renewal date. Record promptly and that priority is preserved.
  2. Real estate transactions — when the debtor eventually sells or refinances, title companies will flag your lien. Senior lien position means you get paid at closing.

For a deeper look at property liens as an enforcement tool, see the Real Property Liens Enforcement guide and the post on determining your senior lien balance after recording an Abstract of Judgment.

Enforcement Doesn’t Stop During Renewal

Renewal is not a pause on collection. You can pursue every tool available while the process plays out — just remember you cannot use the renewed judgment’s additional enforcement authority until proof of service on the debtor is on file.

Once that’s handled, everything is on the table:

Renewal Is the Right Time to Reassess the Debtor

The debtor who was broke at the time of judgment may look very different today. People change jobs, start businesses, buy property, come into money. A judgment that felt uncollectible five years ago may be very collectible now.

Use renewal as the trigger to take a hard look at the debtor’s current financial picture. A Judgment Debtor’s Examination compels the debtor to appear in court and answer questions about their income, assets, and financial accounts under oath. It’s one of the most effective discovery tools in post-judgment enforcement — and it pairs well with a fresh enforcement push after renewal.

See the full enforcement guides library for every tool available to judgment creditors in California.

Common Questions About Judgment Renewal

Can I renew a judgment more than once?
It depends on the type of judgment. Commercial judgments and those above the 2023 statutory thresholds can be renewed indefinitely, but not within five years of the previous renewal. Medical expense judgments under $200,000 and personal debt judgments under $50,000 can only be renewed once, for five years, under CCP § 683.120(c).

Does the debtor find out when I renew?
Yes — service of the Notice of Renewal is legally required. The debtor then has 60 days to file a motion to vacate or modify the renewal. The grounds for vacating are limited: essentially, that the issuing court lacked jurisdiction when the original judgment was entered, or that the renewed amount is incorrect.

What if my judgment falls in the restricted category — is it still worth renewing?
Absolutely. Five more years of enforcement authority, combined with compounding interest at 5%, is still substantial leverage. The key is not to waste that one opportunity — go into the renewal with a concrete enforcement plan already in place.

Can I add enforcement costs to the renewed amount?
Yes. Under CCP § 685.090, recoverable costs — including sheriff’s fees, recording fees, and certain attorney’s fees — can be added to the judgment balance before renewal.

Can I still renew if enforcement was previously stayed?
Generally yes. Under CCP § 683.210, a judgment may be renewed notwithstanding a stay of enforcement, with the notable exception of a federal bankruptcy stay.

The Bottom Line

Renewing a California judgment is largely administrative, but the details are unforgiving. Know which category your judgment falls into so you understand your renewal rights. File before the deadline. Calculate your accrued interest accurately. Serve the debtor immediately and get proof of service on file before you try to enforce the renewed amount. And record the renewal in every county where you have an abstract.

Done right, renewal keeps your collection arsenal fully loaded for another decade — or five more critical years, depending on your judgment type.

If your judgment is approaching the ten-year mark and you’re not sure where you stand, submit it for a free review. I’ll evaluate the judgment type, your current enforcement options, and whether renewal positions you to finally collect.

Opposing a Claim of Exemption in California

In California post judgment execution, understanding the whole process is key.  We have gone over the nuts and bolts of how to do a wage garnishment on a previous post you can check that out here.  For this post, we turn the spotlight to an equally critical aspect: opposing claims of exemption.

When a debtor files this claim of exemption, claiming certain portions of their wages or bank account as exempt, it requires specific timely action, or you will automatically lose the funds you have worked so hard to get.   This guide equips you with the knowledge and strategies to navigate the process of contesting the exemption.

 AUTOMATIC EXEMPTIONS

Some exemptions are automatic meaning the debtor will get them without having to do anything.   An example of this on the garnishment side would be if the debtor makes less than the threshold money amount per paycheck be garnished or the bank levy side if public benefits like disability or Social Security checks are identifiable in the account.  These sorts of exemptions are not challengeable.  

Exemptions that are not automatic can be challenged if a specific timely formula is followed. For this post we will focus on the exemption our office receives most often: the funds are exempt because they are necessary for the care and support of family.

 PROCESS OF CLAIMS OF EXEMPTION

When is judgment debtor files this claim of exemption submit the claim of exemption which states the basis for the exemption, what amount they claim is exempt and an amount which they would be willing to accept as a garnishment per pay period along with a financial statement that details their income and expenses with the sheriff’s department in the county that the levy or garnishment was done.  You can see the financial statement form here .   Once a claim of exemption is received by the Sheriff’s Office they will send notice of the claim of exemption and financial statement to the judgment creditor.   The notice to the judgment creditor will have the date that it was served.   This is critical to note because the way these exemptions work is that the levying officer (Sheriff) will release the money to the judgment debtor automatically unless the judgment creditor files with the court and serves an original notice and opposition to claim of exemption on both sheriff and judgment debtor within the time specified by law. 

 SUPPORT OF FAMILY EXEMPTION

The law on opposing an exemption for funds necessary for the support of family, There is no precise definition of what is “necessary” for the support of a judgment debtor or his or her family. “Necessary” expenses normally include housing costs, food, insurance, automobile costs, etc. However, the court must consider the circumstances surrounding each individual case—what is “necessary” in some circumstances may be a luxury in others. J.J. MacIntyre Co. v. Duren (1981) 118 Cal.App.3d Supp. 16, 18.    The best way to approach this to look at the debtors financial statement and identify expenses that are excessive and luxuries (You would be surprised at how often I’ve seen a multiple financed luxury car payments listed on these financial statement forms) then ask for a number that is less than the total amount you feel is exempt. A lot of times debtors will list installment agreement contracts like credit card payments.   In my experience, judges tend not find these as exempt. There is a lot of leeway for the judge to use his or her discretion to determine the exemption.  

 LAW OFFICE OF BRYAN M. GRUNDON FOR YOUR CALIFORNIA COLLECTION ISSUES

Opposing a claim of exemption is a highly technical process with significant time pressure.  For help with opposing a claim or exemption or other collection issues in the State of California contact our office HERE

The Power of Till Taps

Obtaining a judgment is only the first step in the collection process. Many judgment debtors ignore judgments because they assume nothing will actually happen after the court enters the order.

In practice, collecting judgments usually comes down to one thing: disruption. When a debtor refuses to deal with a judgment voluntarily, the most effective enforcement tools are the ones that disrupt the debtor’s normal operations and prevent them from operating normally until the judgment is collected.

For businesses that operate a storefront, one of the most direct ways to create that disruption is a Till Tap. A Till Tap allows the Sheriff to enter the debtor’s business and seize the cash currently sitting in the register or cash drawer. It is simple, direct, and often very effective at forcing a debtor to address the judgment.

Legal Authority for Till Taps Under California Law

Till Taps are authorized under California’s Enforcement of Judgments Law.

The process begins with a writ of execution. Under California Code of Civil Procedure section 699.510, a judgment creditor may obtain a writ of execution authorizing the levying officer, typically the county Sheriff, to enforce the judgment.

Once the writ is issued, the creditor provides levy instructions directing the Sheriff to perform the Till Tap at the debtor’s place of business.

California Code of Civil Procedure section 700.070 authorizes the levying officer to enter a business and seize the cash contained in the cash register or cash drawer. This type of levy is what practitioners commonly refer to as a Till Tap.

If you are unfamiliar with the broader enforcement framework, you may want to review How to Enforce a Judgment in California, which explains how writs of execution and other enforcement tools fit together.

How a Till Tap Actually Happens

Once the writ of execution is issued, the creditor sends levy instructions to the Sheriff requesting the Till Tap at the debtor’s business.

In many counties you can request that the levy occur at a specific date and time. The Sheriff is not obligated to perform the levy at that exact moment, but if the request is made far enough in advance and falls within normal operating hours, many Sheriff’s offices will try to accommodate the requested timing.

The Sheriff’s deputy arrives at the business during operating hours, identifies themselves, and executes the levy by seizing the cash currently in the register or cash drawer.

Because a Till Tap occurs at a single moment in time, the amount collected depends entirely on how much cash happens to be present when the deputy arrives. Some levies recover very little cash, while others recover substantial amounts depending on the nature of the business and the timing of the levy.

Even when the amount recovered is modest, the disruption to the business is often what produces results. When a Sheriff walks into a business and empties the cash register, the debtor usually realizes that the judgment creditor is actively pursuing collection and that further enforcement actions may follow.

Confirming the Business Before the Levy

Before instructing the Sheriff to perform a Till Tap, it is important to confirm that the business actually belongs to the judgment debtor.

When a deputy arrives to perform a Till Tap or Keeper Levy, they will usually confirm that the business license displayed at the storefront matches the name of the judgment debtor listed on the writ of execution.

If the business operates under a fictitious business name, it is important to confirm that the fictitious business name is properly tied to the debtor. In some situations you may need to provide documentation showing that relationship, or include the name through an affidavit of identity.

Resolving that issue ahead of time helps avoid delays when the Sheriff arrives to execute the levy.

When a Till Tap Is the Right Tool

Till Taps tend to work best when the debtor operates a physical business that regularly handles cash. Restaurants, retail stores, and similar storefront operations are common examples.

If the business processes most of its revenue through credit card transactions, however, a Keeper Levy may be the more effective enforcement tool. During a Keeper Levy, the Sheriff places a keeper inside the business for a period of time and the business is restricted in how it can process payments. In many cases the presence of the keeper prevents the business from processing credit card transactions during the levy period, which can be far more disruptive than a single Till Tap.

The choice between these tools often depends on how the business actually receives its revenue.

For example, if a debtor is ignoring a judgment and operating a storefront business, it may make sense to combine a Till Tap with other enforcement efforts such as bank levies and assignment orders. When the debtor suddenly finds that both the business register and their bank account are subject to levy, they often become much more willing to address the judgment.

Final Thoughts

Till Taps remain one of the most effective enforcement tools available for collecting judgments against operating businesses in California. They are simple, direct, and capable of creating immediate disruption for a debtor who has been ignoring a valid judgment.

In many cases, the goal of a Till Tap is not simply the amount of cash recovered in the register on that particular day. The real purpose is to demonstrate that the judgment creditor is actively enforcing the judgment and will continue doing so until the debt is satisfied.

If you are attempting to collect a judgment against a business in California and want to evaluate your enforcement options, you can request a Free Judgment Enforcement Evaluation to discuss possible strategies.

Levy a Domain in California

ENTER THE MATRIX AND LEVY INTANGIBLE PROPERTY LIKE DOMAINS USING A THIRD PARTY LEVY WITH A WRIT OF EXECUTION

You’ve obtained a judgment and your debtor has a business website. Can you levy on a domain name? The answer is yes, if the domains registrar has a California agent for service of process. Here’s how:

STEP 1: FIGURE OUT WHO THE DOMAIN IN REGISTERED WITH

There are several tools you can us to accomplish this. I like this one.

STEP 2: FIND THEIR AGENT FOR SERVICE OF PROCESS

Once you have determined who it is registrered with you need to see if that company has an agent for service of process in California. You can use the California Secretary of State business search to find this information.

STEP 3: OBTAIN A WRIT OF EXECUTION IN THE COUNTY THEIR AGENT FOR SERVICE OF PROCESS IS LOCATED.

A domain is intangible property. You can levy intangible property in California using a writ of execution. Make sure you’ve added all the post judgment costs and interest you are entitled to by filing a memorandum of costs at least 10 days prior to requesting the writ of execution.

STEP 4: PREPARE AND SUBMIT A THIRD PARTY LEVY IN THE COUNTY WHERE THEIR AGENT IS LOCATED.

In some counties you can prepare the levy and send it to the sheriff for service. In some countines (notably Bay Area counties) the sheriff’s department does not serve levies. In those counties you must open a levy with the sheriff’s office and hire a private process server to actually serve the levy on the domain registrar’s agent. Sacramento county, where a good number of companies have their agent has levy instructions form from the sheriff’s website. You must provide instructions, the writ of execution and the fee for the levy to the sheriff. Each county has different requirements so check with them directly to confirm exactly what you need to submit.

STEP 5: MAKE ARRANGEMENTS WITH THE REGISTRAR TO TRANSFER THE DOMAIN

Once the levy is served on the registrar make contact with them about transferring the domain either for sale or your own use. If the registrar does not respond to the levy further action may be necessary.

Levying intangible property can be challenging. Contact us today if you need help executing on your judgment.

Let’s Go to the Mall…for a Bank Levy

HOW TO LEVY A BANK ACCOUNT IN CALIFORNIA

I am a huge fan of the TV show How I Met Your Mother. Whenever I hear about something associated with malls, I immediately think of Robin Sparkles’ hit song, “Let’s Go to the Mall.” But now I like malls for another reason: I can have a major bank served with a bank levy there. How is that possible? I’ll get there, but first, let’s discuss the process of levying a bank account.

HOW TO LEVY A BANK ACCOUNT

Once you have obtained a judgment, the basic process for levying a bank account is as follows:

  1. Figure out where your debtor banks. There are several ways to go about this, but I am not going to get into that in this post. Once you have determined where they bank, you must check the State of California’s website, which identifies the proper branch to serve bank levies here Bank Levy Central Branch Locator.
  2. Obtain a writ of execution for the county that has the correct bank branch. As I discussed in my nuts and bolts of wage garnishment post, the judgment is not the instrument that you need to do bank levies. A writ of execution is the document needed. A writ of execution can be issued for each county in the State of California. Writs are valid for 6 months and can be renewed as long as your judgment is valid. In California, judgments are valid for 10 years and are infinitely renewable.
  3. Send the writ with levy instructions to the sheriff of the county. This is another situation where different counties have different instructions for levies and require different things to be submitted. The best source to figure out what is necessary to be submitted is the website of the county sheriffs. Some counties do not have any instructions at all. In that case, you must write your own. We make sure that we keep templates saved for each county in our forms library for quick access. As I mentioned in the wage garnishment post, some county sheriffs will not serve bank levies. In that situation, or the situation where the county sheriff is overwhelmed, which is sometimes the case in Los Angeles and Sacramento, you hire a private process server to serve the levy. You would still have to have the process server open the levy with the sheriff, which is the official levying officer (where the return to the levy must be sent and funds from the levy must be sent).
  4. Once the levy is served on the proper bank branch, the bank has a certain time in which it must submit a response to the levy to the sheriff. Occasionally, a bank will not respond to the levy, and we will have to send them a friendly reminder that they need to respond or face a creditor’s lawsuit.
  5. Once they respond with information on the levy, the judgment debtor is notified of the levy, and they have a certain period of time to claim the funds exempt. Once that time passes, if no claim of exemption is filed, then the bank turns the money over to the sheriff, and then the sheriff cuts us a check.

If you need help levying a bank account contact us HERE

THIRD PARTY RENT LEVY

How to Levy Rent From Tenants in California

The name of the game in judgment collection is disruption. If a debtor is allowed to continue doing business as usual, collecting a judgment becomes much harder. One effective way to disrupt that normal flow of business is by intercepting rent payments owed to the debtor.

If a judgment debtor owns rental property, tenants are sending money to that debtor every month. California law allows a judgment creditor to levy on those rental payments so that the tenant pays the levying officer instead of the landlord. When that happens, the debtor suddenly stops receiving rent from their own property and those payments begin going toward the judgment.

A rent levy turns the debtor’s own income-producing property into a collection source.

What a Rent Levy Actually Is

A rent levy is simply a levy on a debt owed to the judgment debtor. The tenant owes rent to the landlord. When the landlord becomes a judgment debtor, that rent obligation can be intercepted through a writ of execution.

California’s Enforcement of Judgments Law provides that all property of a judgment debtor is subject to enforcement of a money judgment. See California Code of Civil Procedure §695.010.

Because rent is a payment obligation owed to the debtor, it qualifies as property that may be reached through levy.

California law specifically provides that a levy on a debt owed to the judgment debtor is made by serving the person who owes the debt with a notice of levy. See California Code of Civil Procedure §700.170.

In the context of rental property, the tenant is the person who owes the debt.

Once the tenant is served with a writ of execution and notice of levy, the tenant must redirect rent payments to the levying officer instead of paying the landlord.

The Procedure for Levying Rent

From a procedural standpoint, a rent levy follows the same execution framework used for other obligations owed to a judgment debtor.

First, the creditor must obtain a writ of execution issued by the court for the county where enforcement will occur.

Second, the creditor prepares levy instructions directing the sheriff or marshal to levy on rent owed by the tenant to the judgment debtor.

Third, the writ of execution, notice of levy, and levy instructions are delivered to the levying officer for service.

The sheriff or marshal then serves the tenant as the third-party obligor. Service of the writ and notice of levy creates an execution lien on the obligation owed to the debtor.

Once the tenant has been served, the tenant is legally required to pay the rent to the levying officer rather than to the landlord. Those payments are then applied toward satisfaction of the judgment. See California Code of Civil Procedure §701.010.

In practical terms, the rent that would normally go to the debtor is intercepted and redirected toward the judgment.

A Practical Limitation on Future Rent

Courts recognize that rent obligations can sometimes be contingent because the tenant’s obligation to pay rent depends on continued possession of the property.

In Hustead v. Superior Court, the court observed that distant future rent obligations may be too speculative to qualify as a present debt subject to garnishment. As a practical matter, a levy typically reaches rent that is currently due or becomes due during the execution lien period, rather than speculative long-term rent obligations.

Why Rent Levies Are So Effective

Many judgment debtors who own rental property rely on rent as a steady income stream. When that stream is interrupted, the debtor immediately feels the pressure.

Unlike bank accounts, which can be emptied or moved, rental income tends to arrive on a predictable monthly schedule. Once tenants are properly served with a levy, those payments can be redirected toward the judgment until the levy expires or the judgment is satisfied.

That kind of disruption often gets a debtor’s attention very quickly.

Rent Levies Within the Larger Enforcement Process

A rent levy is just one tool within California’s broader judgment enforcement framework. Effective collection typically involves identifying the debtor’s assets and choosing the enforcement mechanisms most likely to reach them.

If you want to learn more about how judgment enforcement works in California, you can read about the process here:

→ What We Do: California Judgment Enforcement

If you hold an unpaid judgment and believe the debtor owns rental property, you can also submit the judgment for review here:

→ Request a Free Judgment Evaluation

Can You Force a Sale of Real Property?

One of the first steps you take after obtaining a judgment is to record an abstract of judgment in each county your judgment debtor owns property. Recording an abstract establishes a lien on the property and prevents your judgment debtor from selling or refinancing their property without your consent.

In many instances once you’ve taken this step you can sit back and let the judgment accrue interest at 10% per year and wait until the judgment debtor attempts to sell or refinance property. Sometimes a more aggressive approach is warranted to force the sale of the asset. The best tool to do this is to levy the property with a writ of execution to initiate a sheriff’s sale. A sheriff’s sale is an expensive and time consuming process but if done correctly under the proper circumstances, it is a powerful tool. This post details the steps you should take to determine whether a real estate levy is a viable option for your case.

The property pictured in the header of this post is a 4 bedroom 3.5 bath home of over 6,000 square foot on .97 acres in Pleasanton (East Bay) California. It was sold by Alameda (Oakland) Sheriff’s Department on an execution sale directed by my office. It sold for over 2.5 million dollars.

A real property levy can only be used when the judgment debtor has equity in the property over the liens senior to your position on the property. Put simply: if the property is sold, all lienholders ahead of you have to be paid in full before any money can go towards the satisfaction of your judgment. You will not be able to obtain an order from the court to allow the sheriff to conduct the sale if the sale would not produce any funds to satisfy your judgment.   The first step is to determine if you would get any money from the sale of the property is to determine what liens have a higher priority than you.   To do this you should conduct a public records search to see what, if any liens are on the property recorded prior in time to the abstract of judgment you have recorded in the county where the property is located.  

When you have determined which liens are ahead of you the next step is to determine the balance of each lien.   If you have recorded an abstract on the property, Civil Code 2943(a)(5) allows you to send a letter to any senior lienholder to obtain a payoff statement of their lien within 21 days of the letter.  After you have determined the balance of the senior liens you need to determine whether a disabled veteran exemption or homestead exemption applies.  A homestead exemption is either recorded or can be claimed, if the exemption is claimed the burden of proof is on party claiming it but you must make your own decision prior to taking the next steps on whether you believe the exemption applies.  Additionally, the amount of homestead exemption differs in family circumstances and when you first obtained your lien on the property.  If the lien is first recorded prior to 2021 the amount is significantly smaller.   Next, you need a rough estimate of the Fair Market Value of the home.  Using all the information you have obtained you should have an idea of whether there is equity or not in the property and whether you want to proceed with the next very expensive steps.  If there is a homestead exemption present on the property, the sale price of the home can be no lower than 90% of the fair market value.  

If you have determined there is sufficient equity in the property to proceed, you are ready to move to the next phase. Part II of this series walks through the nuts and bolts of executing the levy — including obtaining a drive-by appraisal, ordering a litigation guarantee from a title company, and preparing the ex parte application before you ever submit the levy paperwork to the sheriff. You can read it here: How to Execute a Real Property Levy in California: A Step-by-Step Guide.

Technical Enforcement Guide Series

This article is part of a series of Technical Enforcement Guides discussing practical tools used in California judgment enforcement.

Bryan M. Grundon has focused on judgment collection and post-judgment enforcement for more than 20 years, representing creditors in enforcement matters throughout California.

ENFORCING A JUDGMENT WITH A BANK LEVY

One of the most common tools to enforce a judgment is to levy a bank account.  A levy is a process where you serve your debtor’s financial institution (they can be used for credit unions too) and it captures all the money in the account at time the levy is served (less automatically exempt funds like social security or disability payments).  

To use this judgment enforcement tool, the first thing you would need to do is to determine where your judgment debtor banks.   There are many avenues to accomplish this. One example is, if you have a credit application from your debtor it will likely include this information.   Another example, if you paid your judgment debtor in the past, or they paid you, you can check cancelled checks or ACH’s to determine this.   As a last resort, if you don’t have any information you can serve the judgment debtor with an order to appear for an examination (See past blog: The Detective Aspect of Collecting), or to hire a skip tracer to do a bank account search.   

Once you’ve determined where they bank, you must find the proper place to serve the levy. When I first started practicing law, if you wanted to do a bank levy you had to serve it at the branch at which the account was opened in order for it to be effective.   So, even if you knew that your debtor had money at a big bank like US Bank or Bank of America, you would still have a difficult time hitting on a levy. California law now requires financial institutions to designate a central location for bank levies to be served. This accomplished by checking: www.dbo.ca.gov/Laws_&_Regs/legislation/service_of_legal_process/. If the financial institution doesn’t designate a central location, you can serve levies at any branch in the state. In the case that the institution doesn’t have a central location, I recommend that you avoid serving bank levies in the Bay Area, Sacramento, or Los Angeles.

Next, you need to obtain a writ of execution for the county you want to serve the levy in. As I discussed in my Nuts and Bolts of Wage Garnishment post, the judgment is not the instrument that you need to do bank levies, but instead a writ of execution is the document needed. A writ of execution can be issued for each county in the State of California. Writs are valid for 6 months and can be renewed as long as your judgment is valid. In California, judgments are valid for 10 years and are infinitely renewable.

Finally, you must send the writ with levy instructions to the sheriff of the county. This is another situation where individual counties may have different levy instructions and require particular things to be submitted. The best source to figure out what is necessary to be submitted is the website of the county sheriffs. Some counties do not have any instructions at all. In that case, you must write your own. We make sure that we keep templates saved for each county in our forms library for quick access. As I mentioned in the The Nuts and Bolts of Wage Garnishment post, some county sheriffs will not serve bank levies. In that situation, or the situation where the county sheriff is overwhelmed (which is sometimes the case in Los Angeles and Sacramento), you hire a private process server to serve the levy. You would still have to have the process server open the levy with the sheriff, who is the official levying officer (where the return to the levy must be sent and funds from the levy must be sent). Once the levy is served on the proper bank branch, the bank has a certain time period in which it must submit a response to the levy to the sheriff. Occasionally, a bank will not respond to the levy, and in that case we will have to send them a friendly reminder that they need to respond or face a creditor’s lawsuit.

Once they respond with information on the levy, the judgment debtor is notified of the levy, and they have a certain period of time to claim the funds exempt. Once that time passes, if no claim of exemption is filed, then the bank turns the money over to the sheriff, and then the sheriff cuts us a check.

How to Clear Judgment Liens to Close Real Estate Transactions

The real estate, mortgage and escrow industries frequently intersect with my business when someone needs to clear a judgment lien in order to finish a refinance or sale of a home.  I have found that most of these professionals do not know how to remove a judgment lien on real property after a judgment has been satisfied.    Most of these professionals incorrectly believe it is the responsibility of the judgment creditor.

A judgment lien on real estate is created when a judgment creditor records an abstract of judgment in a county where the judgment debtor has property.  A recorded abstract of judgment also attaches to all property the judgment debtor currently owns and all after acquired property in that county. 

When a judgment is satisfied by the debtor, the judgment creditor must file with the court a satisfaction of judgment.  If the creditor has recorded an abstract it must list the counties it was recorded in and the number of the recorded document.  Once this document is filed it is to be served on the judgment debtor.    However, the filing of the satisfaction of the judgment does not release the judgment lien created by the abstract of judgment.   The judgment debtor is responsible to record the satisfaction of judgment in the county where the property is held.  To accomplish, the judgment debtor needs to obtain a certified copy of the satisfaction of judgment and take it to the county recorder’s office and pay the recording fee.

Claims of Exemption

Claims of Exemption

by Antonia Gordon and Bryan Grundon

There are many ways to collect on a judgment. Wage garnishments and bank levies happen to be two of the most common and reliable methods. With the first, we can garnish a debtor’s wages and thus ensure consistent payments on a judgment. With the second, we gain access to whatever funds a debtor has in their account at the time of the levy.

Unfortunately, garnishments and levies may not always be completely successful. After the Sheriff serves one of these on a bank or employer, the debtor receives notice and has a chance to respond to it. They can complete a form called a claim of exemption, which allows them to claim part (or all) of their wages or the funds in their bank account as exempt. If the claimed wages or funds are necessary to support the debtor or their family, the court may grant their claim (in full or in part), and we will not be able to collect the full amount from the garnishment or levy. The debtor, however, must provide proof that their earnings or funds are exempt. The first step to this is filling out a financial statement in which they list their monthly earnings and expenses, including those of their spouse.

Once a debtor files a claim of exemption, you have the opportunity to oppose it. If you do not oppose it by following a very specific procedure, the exemption is granted by operation of law. Opposing a claim of exemption involves reviewing the debtor’s financial statement to look for any inconsistencies or excessive spending. If we believe that the debtor can afford to pay more than they claim, we will set a hearing with the court and file paperwork to oppose the claim. At the hearing, both parties will get the chance to argue their side. In most cases, the debtor can afford to pay at least a small amount, even when they claim they cannot afford to pay anything at all. In their financial statements, debtors may overestimate how much they spend on certain things, such as food and gas. We have even had debtors claim they make a certain amount per month only to have their employer reveal that they actually make significantly more. Judges are never happy to see this kind of deception! We make sure we have the full story before going to court, so the debtor ends up paying what they can actually afford, and you are able to collect on your judgment.