Collecting a California Civil Judgment Utilizing a Lien on a Pending Lawsuit

Here’s the scenario: You’ve just won a civil judgment and you’re trying to find the quickest most efficient way to collect your judgment. If your research reveals that the judgment debtor is suing someone else, you have a valuable opportunity to leverage their potential recovery. A lesser known but powerful tool for judgment collection in California is placing a lien on a pending lawsuit.

What is a Judgment Lien?

Authorized by California Code of Civil Procedure 708.410, a judgment lien is a legal claim that attaches to a debtor’s interest in the lawsuit they are in the middle of.   Once properly filed a served, you have attached any recovery they might obtain on the lawsuit and the debtor cannot settle or dismiss their lawsuit without your consent as the lienholder.

Steps to Place a Lien on a Pending Lawsuit in California:

  1. Obtain a Certified Copy of the Judgment: Request a certified copy of your judgment or abstract of judgment from the court clerk. This will be required when filing your lien.
  2. Prepare a Notice of Lien: The Notice of Lien must include the following information:
    • Name and address of the judgment debtor
    • Name and address of the judgment creditor
    • Amount of the judgment
    • Name and address of the court that issued the judgment
    • Date of the judgment
  3. File the Notice of Lien: File the Notice of Lien with the court where the debtor’s pending lawsuit is located.
  4. Serve the Notice of Lien: Ensure the Notice of Lien is properly served on the debtor and all other parties involved in the pending lawsuit.

If you’re a judgment creditor in California and your debtor has a pending lawsuit, placing a lien on that lawsuit can be a strategic move to secure the money you’re owed.

Understanding the Challenges of Asset Recovery

Winning a court judgment in your favor is a crucial victory, but it’s only the first step in securing what you are rightfully owed. Unfortunately, not all debtors willingly comply with court orders to pay or return assets. This is where the real challenge begins—converting your judgment into actual financial recovery. At the Law Office of Bryan M. Grundon, we specialize in helping clients navigate the complex process of judgment enforcement, ensuring they recover assets efficiently and effectively.

Understanding the Challenges of Asset Recovery

Even with a court-ordered judgment, the debtor might not voluntarily pay the amount owed. In some cases, they may hide assets, transfer property, or simply refuse to cooperate. This can be both frustrating and overwhelming, especially when you are unsure of your legal options.

Enforcement of a judgment requires strategic action to locate, seize, or otherwise compel payment from the debtor. Our firm is experienced in dealing with various scenarios, and we offer tailored strategies to meet the unique needs of each case.

How We Assist in Asset Recovery

At the Law Office of Bryan M. Grundon, we provide comprehensive support for clients looking to enforce court-ordered judgments. Here’s how we can help you recover your assets:

Locating Hidden Assets

Some debtors may try to hide assets to avoid paying what they owe. Our firm has the resources to conduct thorough investigations and locate hidden assets, including bank accounts, real estate, vehicles, and other property. We use various methods, such as:

  • Asset Searches: Identifying bank accounts, investment portfolios, real estate, and other assets the debtor may possess.
  • Property Records: Reviewing public records to uncover properties that the debtor may own.
  • Forensic Accounting: Analyzing financial records to trace asset transfers or hidden funds.

By identifying these assets, we can help ensure they are available for recovery.

Filing for a Writ of Execution

A writ of execution allows law enforcement to seize the debtor’s assets to satisfy your judgment. We assist in filing the necessary paperwork to obtain a writ of execution from the court. Once granted, we work with law enforcement to seize the debtor’s assets, including bank accounts, vehicles, or real estate.

Our team handles the entire process, from filing the application to coordinating with authorities, making it easier for you to enforce your judgment and recover your assets efficiently.

Garnishing Wages and Bank Accounts

One of the most effective ways to enforce a judgment is through wage garnishment or bank account levies. Our firm can obtain a court order to garnish a portion of the debtor’s wages directly from their employer. Similarly, we can secure an order to levy the debtor’s bank accounts, ensuring that the funds are directed to you.

We handle the legal complexities of garnishment, including preparing and serving the necessary documents to employers and financial institutions, so you don’t have to worry about the details.

Placing Liens on Property

If the debtor owns real estate, we can place a lien on their property. A lien prevents the debtor from selling or refinancing the property without first paying the judgment. While this process may take time, it is an effective way to ensure that you eventually recover what you are owed.

Our firm assists in filing and recording the lien with the appropriate authorities, making sure it is properly documented and enforceable.

Conducting Debtor Examinations

When necessary, we can request a debtor examination—a court-ordered process that requires the debtor to disclose information about their assets. During this examination, the debtor must answer questions under oath regarding their income, property, bank accounts, and other assets.

We prepare and conduct debtor examinations to uncover hidden assets and identify opportunities for enforcement. This strategy often provides valuable information that aids in the recovery process.

Why Choose the Law Office of Bryan M. Grundon for Asset Recovery

Recovering assets after a judgment requires legal expertise, tenacity, and a strategic approach. The Law Office of Bryan M. Grundon has a proven track record of helping clients enforce judgments and recover their assets successfully. We offer:

  • Extensive Experience: Our firm has a deep understanding of the legal tools available for judgment enforcement, ensuring that we can pursue the most effective course of action for your case.
  • Comprehensive Support: We handle every aspect of the asset recovery process, from locating assets to filing legal documents, garnishing wages, and executing property seizures.
  • Customized Strategies: Every case is unique. We work closely with you to develop a tailored strategy that aligns with your specific situation and maximizes your chances of recovery.

Take Control of Your Judgment with Our Help

Securing a judgment is an important achievement, but the real goal is to recover what you are owed. The Law Office of Bryan M. Grundon is here to guide you through the asset recovery process and take the necessary steps to enforce your judgment effectively. If you are facing challenges in collecting on a court-ordered judgment, contact us today. Let us help you turn your judgment into a tangible financial recovery.

Collect From A 1099 Independent Contractor Using An Assignment Order

In today’s workforce, many individuals are classified as independent contractors by their employers. Collecting unpaid debts from a 1099 independent contractor can be a complex process, as traditional wage garnishment is only effective against W-2 employees. For independent contractors, a more labor-intensive method known as an assignment order can be utilized. This blog post provides an overview of assignment orders and how they can be used to collect California judgments.

How Does an Assignment Order Work?

An assignment order is obtained through a noticed motion. Under Code of Civil Procedure §708.510, a court can issue an order directing the judgment debtor to assign to a judgment creditor all or part of a right to payment due or to become due. This can include wages from the federal government that are not subject to withholding under an earnings withholding order, rents, commissions, royalties, payments from patents or copyrights, insurance policy loan values, accounts receivable, general intangibles, judgments, and instruments.

While the court may consider all relevant factors, the primary constraints are that the right to payment should be assigned only to the extent necessary to satisfy the creditor’s money judgment. Additionally, if part of the payments are exempt, the assigned amount should not exceed the difference between the gross amount of the payments and the exempt amount.

Once you obtain the assignment order, it must be served on the third party responsible for making the payments.

An assignment order is a crucial tool in the judgment collection toolbox. If you need assistance with collecting your judgment, contact our office for a consultation.