![]() By documenting a lien with the county recorder’s office or the Secretary of State, a lien can be placed on the debtor’s real and personal property. When a judgment has been entered, it can exist for 10 years with the option of renewing the judgment for an additional 10 years.Ī judgment is normally collected via the lien mechanism. Interest usually only accrues on the original amount of the judgment other than when judgments are periodically re-recorded, in which case the interest compounds. As any further money is made available from the debtor to the creditor, it is applied to meet any extra fees and interest, and only in this instance will it be added to the outstanding balance of the judgment. But if the creditor has no entitlement to collect on a judgment then there is no need for protective planning.Īny additional charges and interest may be introduced to the judgment. The judgment can include all the property owned by the debtor along with any community property owned by the debtor’s spouse.Īny form of asset protection planning is based on the ability of the creditor being able to collect the debt. ![]() The CCP states that all assets owned by the debtor, with some exceptions, can be subject to the enforcement of a judgment against the debtor. What happens after a creditor has legally received a judgment against the debtor? What is the creditor allowed to do to enforce the judgment and be able to claim on the judgment? The details of these rights and powers can be found in Title 9 “Enforcement of Judgments” of the Californian Code of Civil Procedure (CCP). The Californian Collection Laws are statutes that provide the legal rights and powers that a creditor has to enforce a judgment against a debtor.
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