Notice Of Levy

Notice of Levy procedures might get used with money judgments, and for situations when the settlement or judgment hasn't been finalized yet.

This is one of my many judgment articles: I'm a Judgment referral expert, not an attorney. This article is only my opinion based on my long term experiences within California, please hire an attorney when you require legal advice.

When you don't have your money judgment quite yet, or aren't planning on levying some of the judgment judgment debtor's available property fairly soon, using a "Notice of Levy" process is usually the strongest thing to try first. What's after that depends partially on whether there's any oppositions claimed by any relevant person. Using a levy notice is usually generally legal, even when A levy notice isn't the best method of getting some money.

To be able to object to a levy notice will need that notice is served/sent, not simply the decision of your judgment debtor, as per C.C.P. (the Code of Civil Procedures) 701.520( c, 701.520( c) and (d):

CCP 701.520( c): Within 10 days after service of the notice of intended sale, the judgment debtor may apply to the court on noticed motion for an order that the property be collected rather than sold. A judgment debtor who so applies shall, within the time allowed for the application, serve a copy of the notice of motion on the judgment creditor and file a copy of the notice of motion with the levying officer. Service of the copy of the notice of motion on the judgment creditor shall be made personally or by mail. If the copy of the notice of motion is not filed with the levying officer within the time allowed, the levying officer shall proceed to sell the property. If a copy of the notice of motion is filed with the levying officer within the time allowed, the levying officer shall continue to collect the property until otherwise ordered by the court.

CCP 701.520( d): At the hearing on the motion, the court may in its discretion order that the property be sold or be collected depending on the equities and circumstances of the particular case.

If your court decides that your judgment debtor's available property get sold, the order might list the conditions and terms of the eventual sale. When your court decides that the debtor's property be collected; the court might condition its decision concerning an assignment of available property belonging to the judgment debtor, to the judgment owner as per CCPs 708.510 - ,-708.560.

CCP 708.410( d) specifically defines when a Notice of Lien in a Pending Action can be filed at the court. Note that, when a judgment is final; a levy on assets most often provides the best odds to get repaid. CCP 700.190 identifies the specifics on a final civil money judgment. The 2 CCP code sections, because of the language they use, appear to be mutually exclusive.

There's the theory that the judgment debtor might object to a levy action, and the sheriff will be on paper given the task to recover your judgment, instead of selling the debtor asset at a regular auction sale. Alas, its only theoretical.

The reason this is just a theory is, to recover your judgment your judgment debtor would have to provide to your sheriff enough info to then permit your sheriff to recover your judgment, like their banking info, etc.

Your sheriff cannot force your judgment debtor to make a payment upon demand. Most often, one is only in a position to compel or issue a satisfaction of judgment after they've got obtained the rights to a judgment as per state law.

CCP 701.520 explains how your judgment is sold. It's not likely that your judgment debtor would:

1) Complete the actions necessary in the first place in objecting to their sheriff's auction sale, and also

2) Win the court hearing on their noticed motion..

I've not ever heard or seen of this kind of motion getting brought to court. This could happen as it's authorized as per the CCPs. It is not any reason to forget the collection procedures, and not thinking about a sheriff levy on the judgment debtor's property or money judgment.

To oppose such a judgment debtor court motion, a judgment creditor could argue that in the absence of proof from the judgment debtor, and that there's actually some chance to collecting using a levying officer, the debtors' should not be granted.

There is a possible problem when using a levy that will have a sheriff sale. If your judgment debtor simply objects to the auction sale (it is not a court procedure), then your sheriff should recover the creditor's judgment, and not sell at at auction.

What are the chances that your local sheriff, when facing with this kind of objection, will make any kind of effort at all to recover your judgment sometime between today and the Second Coming?

If your judgment debtor chooses to tell their local sheriff recover your judgment, that's the ending of the actions a judgment creditor or an assignee of record may make to recover the judgment.

The creditor is paid most of the money which a sheriff recovers, but when the sheriff recovers zero, that's what the judgment creditor receives.

It's best to ask your sheriff to levy and sell the property or judgment, especially when you believe the judgment debtor won't make a fuss. Certain judgment debtors retain lawyers to thwart judgment creditors.

What's done is history. There's not anything in case law or the statues that suggests that an unchallenged "Notice of Lien" is not effective over the long term, no matter of the date that is filed at the recorder. Are lien notices the optimum way to run your recovery business? Perhaps not, however this isn't illegal. Whatever isn't illegal, is allowed. (At least, until some judge writes it isn't allowed.)

Mark Shapiro - Judgment Broker - http://www.JudgmentReferral.com - where Judgments go and are quickly Collected!

This article was published on 31 Aug 2014 and has been viewed 721 times
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