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UPDATES TO COLLECTION LAW IN CALIFORNIA 2024

The California Legislature has made some significant changes to the rules on collecting judgments effective January 2024.   Here’s some of what you need to know about those changes.

CHANGE IN SERVICE REQUIREMENT FOR DEBTORS EXAMS

In a previous post we went through the process of conducting a judgment debtor exam.  If you want full understanding of how to conduct an exam you can check that out here. Previously, creditors only had to serve the JDE order on the debtor 10 days before the exam. Now, the service period has been extended to 30 days. This provides the debtor with more time to prepare and seek legal counsel if needed.   It also works with the new procedure debtors can utilize to try to avoid the examination.

This new notice requirement will work with new procedures set to be introduced on consumer debt after 2025 in code of civil procedure 708.111, which will provide consumer judgment debtors the option to file a Declaration in Opposition to Examination (Form JDB-110) within 15 days of service. This form allows them to challenge the JDE on various grounds, including Lack of good cause for the exam; Already provided complete financial information, and Undue hardship or medical issues.

If the debtor files the affidavit, the burden shifts to the creditor to prove good cause for the JDE. The creditor must submit their own evidence and may have to appear in court for a hearing.

CHANGES IN FORMS USED FOR LEVIES

A big change that is applicable to collection law is the new statewide mandatory forms to use when submitting levies.  This really effects anything you would use a writ to levy except for a wage garnishment They are SER-100 and SER-100a

Make sure you are up on the latest collection laws within the state.  Failing to understand these changes can slow down progress on collecting your judgments.   If you need an experienced attorney experienced in navigating post judgment collection contact us HERE