How to Collect a Judgment in California: A Practical Guide for Creditors

Why Enforcement Is Necessary After Winning a Judgment

Securing a legal judgment is an important victory, but in California, collecting on that judgment requires a proactive, legally sound approach. Whether you’re an individual who won a small claims case or a business that prevailed in a civil lawsuit, enforcing a judgment is often more complicated than the lawsuit itself. The California legal system provides several mechanisms for collecting on judgments, but each comes with specific procedures, timelines, and limitations.

This guide outlines key steps for judgment enforcement in California and explains how professional legal help from The Grundon Law Firm can make the process faster and more effective.

Step 1: Identify the Debtor’s Assets

Successful judgment collection starts with knowing where the debtor’s money or property is. Begin with what you already know:

  • Do they own a house?
  • Do you know where they work?
  • Do they own a running business
  • Where do they bank? (If you’ve ever paid or been paid by the debtor, you likely do.)

Helpful Tools to Uncover Assets

  • Public Record Searches: Property deeds, court filings, and business licenses.
  • Debtor’s Examination: Court-ordered questioning under oath regarding income, assets, and accounts.
  • Private Investigators or Asset Search Services: Useful when debtors conceal assets or relocate.

Step 2: Lien the Debtor’s Assets

Abstract of Judgment (Real Property): Record an Abstract of Judgment with the County Recorder in any county where the debtor owns real estate. This creates a lien on any currently owned or after acquired property by the debtor in the county. This prevents sale or refinancing until the debt is satisfied.

  • Priority Rule: First in time, first in right (in most cases).
  • UCC JL-1 (Personal Property): A UCC JL-1 Judgment Lien Notice is filed with the California Secretary of State and places a lien on a debtor’s personal property (e.g., equipment, inventory, accounts receivable). It gives public notice of your claim and can be filed immediately after judgment is entered.

Step 3: Obtain Enforcement Tools from the Court

To enforce a judgment involuntarily, you’ll typically need a Writ of Execution issued by the court for the appropriate county. The county you need the writ issued for depends on the asset you are attacking. This document is required for:

  • Bank levies
  • Wage garnishments
  • Seizure of personal property

Step 4: Execute the Judgment

Wage Garnishment:
Allows interception of up to 25% of a debtor’s disposable income. The process involves:

  • A Writ of Execution
  • Application for an Earnings Withholding Order
  • Sheriff’s service to the debtor’s employer

Bank Levy:
Allows you to seize money directly from a checking or savings account:

  • Requires a Writ of Execution
  • Sheriff serves the bank with levy instructions

Rent Garnishment:
If the debtor is a landlord, you can intercept tenant rent payments:

  • Requires a writ and sheriff service
  • Tenants pay rent to the sheriff

Keeper Levy and Till Tap:
Effective against retail businesses:

  • Keeper Levy: A deputy stays at the business and collects all sales proceeds.
  • Till Tap: The deputy collects money from the register at a specific time.

Seizure of Personal Property:
With a writ, the sheriff can seize and sell property such as vehicles or business equipment.

Assignment Order:
Allows the court to assign the debtor’s right to payments (e.g., commissions or rent) to the creditor.

Step 5: Deal with Complications

Judgment enforcement isn’t always straightforward. Debtors may:

  • Hide or transfer assets
  • Claim exemptions under California law
  • File for bankruptcy

Legal Tools to Combat Evasion:

  • Fraudulent Transfer Actions (under California’s Uniform Voidable Transactions Act)
  • Motions to add alter ego judgment debtors
  • Adversary Proceedings in bankruptcy to challenge discharge of judgment

Working with an attorney becomes crucial when these complications arise.

Step 6: Renew the Judgment Before It Expires

California judgments are enforceable for 10 years. If unpaid, the judgment must be renewed before expiration to remain collectible.

Renewal steps:

  • File an Application for and Renewal of Judgment
  • Serve notice on the debtor
  • Re-record any Abstracts of Judgment Each renewal extends enforceability by another 10 years. Interest continues accruing at 10% annually.

Step 7: Common Mistakes to Avoid

Avoid these costly errors:

  • Not recording liens promptly
  • Waiting too long to begin enforcement
  • Failing to properly serve notices
  • Using incorrect forms or court procedures
  • Forgetting to renew the judgment

Legal mistakes can cause significant delays or even make the judgment unenforceable. Hiring an experienced collections attorney reduces these risks.

Why Legal Help Matters

Enforcing a judgment requires strict adherence to court procedures, correct documentation, and timely action. Errors can delay recovery or result in dismissal of enforcement efforts.

The Grundon Law Firm helps California creditors:

  • Identify and locate debtor assets
  • Execute on Judgments
  • Oppose improper exemptions and fraudulent transfers
  • Navigate bankruptcy and domestication issues

Take Action Now

Delays make collections harder. Debtors move, conceal assets, or file bankruptcy. Whether your judgment is recent or years old, options still exist.

The Grundon Law Firm stands ready to help you collect what you’re owed.

Contact us today to schedule a consultation and start your recovery process.