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Debt Collection Practice in California

Learn from the experts on both sides of this critical area of law. Obtain powerful judgments—and then collect on them! Or discover effective defense strategies and how to respond to a judgment. Understand the traps, tricks, and regulations of collections practice.

Learn from the experts on both sides of this critical area of law. Obtain powerful judgments—and then collect on them! Or discover effective defense strategies and how to respond to a judgment. Understand the traps, tricks, and regulations of collections practice, including:

  • Compliance with the Telephone Consumer Protection Act—a major litigation risk
  • Complying with the Fair Debt Collection Practices Acts
  • How to bring and try creditor actions
  • Obtaining and satisfying money judgments
  • Wage garnishments, charging orders, liens, and other remedies
  • Best debtor defenses before and after judgment
  • Enforcing family law judgments
  • Critical Consumer Financial Protection Bureau consumer debt regulations
  • Collecting from or defending decedent debtor estates
  • Dozens of Judicial Council forms and sample pleadings
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Learn from the experts on both sides of this critical area of law. Obtain powerful judgments—and then collect on them! Or discover effective defense strategies and how to respond to a judgment. Understand the traps, tricks, and regulations of collections practice, including:

  • Compliance with the Telephone Consumer Protection Act—a major litigation risk
  • Complying with the Fair Debt Collection Practices Acts
  • How to bring and try creditor actions
  • Obtaining and satisfying money judgments
  • Wage garnishments, charging orders, liens, and other remedies
  • Best debtor defenses before and after judgment
  • Enforcing family law judgments
  • Critical Consumer Financial Protection Bureau consumer debt regulations
  • Collecting from or defending decedent debtor estates
  • Dozens of Judicial Council forms and sample pleadings

1

Representing the Creditor

Richard L. Enkelis

Irwin J. Eskanos

Brian N. Winn

  • I.  BRIEF OVERVIEW OF DEBT COLLECTION PRACTICE
    • A.  Nature of Collection Law Practice  1.1
    • B.  Nature of Volume Collection Practice  1.1A
      • 1.  Consumer Claims: National Association of Retail Collection Attorneys (NARCA)  1.1B
      • 2.  Commercial Claims: Where Commercial Collection Cases Come From
        • a.  Collection Agencies  1.2
        • b.  Commercial Law League of America (CLLA)  1.3
          • (1)  Receivers’ Duties and Restrictions [Deleted]  1.4
          • (2)  Forwarders’ Duties and Restrictions  1.5
        • c.  Law Lists  1.6
        • d.  California Creditors Bar Association  1.6A
        • e.  Other Sources of Claims  1.7
  • II.  INITIAL CONSIDERATIONS
    • A.  Checklist: Should Counsel Take Case?  1.8
    • B.  Ethical Considerations
      • 1.  Viability of Claim  1.9
      • 2.  Creditor’s Motives  1.10
      • 3.  Conflicts of Interest  1.11
      • 4.  Attorney Competence  1.12
      • 5.  Identifying the Client  1.13
    • C.  Economic Considerations
      • 1.  Fee Agreements  1.14
        • a.  How Large Is the Claim?  1.15
        • b.  How Old Is the Claim?  1.16
        • c.  Does Claim Appear to Be Disputed?  1.17
        • d.  Does Debtor Appear to Have Assets?  1.18
          • (1)  Is Debtor Still in Business?  1.19
          • (2)  What Is Nature of Debtor Entity?  1.20
      • 2.  Expenses  1.21
      • 3.  Documenting Fee and Cost Agreements
        • a.  Forwarded Claims  1.22
        • b.  Direct Claims  1.23
  • III.  OFFICE MANAGEMENT FOR EFFECTIVE DEBT COLLECTION
    • A.  Need for Effective Office Management  1.24
      • 1.  Using Standardized Forms  1.25
      • 2.  Using Support Staff  1.26
        • a.  Support Staff Tasks  1.27
        • b.  Form: Memorandum to Support Staff re Fair Debt Collection Practices  1.28
    • B.  File Management
      • 1.  Filing Systems  1.29
      • 2.  Continuing File Review  1.30
      • 3.  Calendaring Systems
        • a.  Importance of Effective Calendaring Systems  1.31
        • b.  Events to Be Calendared  1.32
      • 4.  Using Computer Technology  1.33
    • C.  Maintaining Positive Client Relations
      • 1.  Exchange of Information Between Client and Counsel  1.34
      • 2.  Financial Accounting  1.35
  • IV.  THE FAIR DEBT BUYING PRACTICES ACT  1.36
    • A.  Definitions  1.37
    • B.  Information Debt Buyer Must Possess Before Making First Written Statement to Debtor  1.38
    • C.  Required Language for First Written Communication to Debtor  1.39
    • D.  Settlement Agreements and Payments  1.40
    • E.  Actions on Consumer Debt; Contents of Complaint; Default Judgment  1.41
    • F.  Actions to Contest Default Judgment  1.41A
    • G.  Penalties for Violation of Act  1.42
  • V.  SAMPLE FEE AGREEMENTS
    • A.  Form: Contingent Fee Agreement With Noncontingent Retainer  1.43
    • B.  Form: Hourly Fee Agreement  1.44

2

The Fair Debt Collection Practices Acts

Scott J. Hyman

  • I.  STATUTORY BACKGROUND AND PREEMPTION
    • A.  Purposes of the State and Federal Acts and Other Sources of Law  2.1
    • B.  Statutory Preemption  2.2
    • C.  Relationship Between State and Federal FDCPA and Federal Bankruptcy Code  2.3
      • 1.  Jurisdictional and Preemption Rules When FDCPA Claim Arises Postpetition  2.4
      • 2.  Chapter 7 Debtor’s Standing to Sue  2.5
      • 3.  Chapter 13 Debtor’s Standing to Sue  2.6
    • D.  California’s Partial Adoption of Federal FDCPA  2.7
  • II.  PERSONS TO WHOM THE FDCPAs APPLY
    • A.  Federal Act  2.8
      • 1.  Attorneys May Be “Debt Collectors”  2.9
      • 2.  Creditors Are Not “Debt Collectors”  2.10
      • 3.  Debt Assignees  2.11
      • 4.  Subsidiaries and Loan Servicers  2.12
      • 5.  Other Excluded Persons  2.13
    • B.  California Act
      • 1.  Comparison With Federal Act  2.14
      • 2.  California’s Regulation of Attorney Practices  2.15
  • III.  DEBTS TO WHICH THE FDCPAs APPLY
    • A.  Federal Act
      • 1.  Definition of “Debt”  2.16
      • 2.  “Consumer” Requirement  2.17
      • 3.  Examples  2.18
      • 4.  In Rem Proceedings  2.19
    • B.  California Act  2.20
  • IV.  COMMUNICATIONS WITH THIRD PARTIES
    • A.  Third Party Standing  2.21
      • 1.  Under the FDCPA  2.22
      • 2.  Under the Rosenthal Act  2.23
    • B.  Communications Regarding Location Information  2.24
    • C.  Communications Regarding Debt
      • 1.  Federal Act  2.25
      • 2.  California Act  2.26
  • V.  COMMUNICATION WITH DEBTOR
    • A.  Time, Place, and Manner Restrictions  2.27
    • B.  Ceasing Communications With Debtor
      • 1.  Notification That Consumer Is Represented by Counsel  2.28
      • 2.  Imputed Knowledge  2.29
      • 3.  Disbarred Lawyers and Nonlawyers Claiming Legal Powers  2.30
      • 4.  Consumer Requests to Cease Communications  2.31
    • C.  “Least Sophisticated Consumer” Test  2.32
    • D.  Harassment, Abuse, and Threats  2.33
    • E.  False or Misleading Representations  2.34
      • 1.  Affiliation With Government  2.34A
      • 2.  Legal Status of Debt or Amount of Charges  2.34B
      • 3.  False Suggestion That Debt Collector Is Attorney  2.34C
      • 4.  False Possibility of Criminal Action, Garnishment, or Attachment  2.34D
      • 5.  Threats of Unintended or Illegal Action  2.34E
      • 6.  Loss of Claim or Defense  2.34F
      • 7.  Embarrassing or False Suggestions  2.34G
      • 8.  Threats to Falsify Credit Report  2.34H
      • 9.  False Impressions in Source of Communication  2.34I
      • 10.  Any False or Deceptive Practices  2.34J
      • 11.  Suggestion That Accounts Have Been Sold  2.34K
      • 12.  Suggestion That Nonlegal Documents Are Legal Process  2.34L
      • 13.  Suggestion That Debtor Need Not Respond to Legal Documents  2.34M
      • 14.  Use of Incorrect Business Name  2.34N
      • 15.  Representing That Debt Collector Is Employed by Consumer Reporting Agency (CRA)  2.34O
      • 16.  Threats to Defame Debtor  2.34P
      • 17.  Misrepresentations of Collector’s Business  2.34Q
      • 18.  Suggestion That Lawsuit Will Be Filed  2.34R
      • 19.  Suggestion That Debt Has Been Assigned to Collection  2.34S
      • 20.  Demand for Money Without Valid Assignment  2.34T
    • F.  Unfair Practices  2.35
    • G.  Validation of Debt
      • 1.  Required Notices From Debt Collector: State Law Requirement  2.36
      • 2.  Required Notices From Debt Collector: Federal Law Requirement  2.37
        • a.  Language of Validation Letter  2.38
        • b.  Definition of “Initial Communication”  2.39
      • 3.  Written Communication Requirements Within 30-Day Period  2.40
      • 4.  Statement of the Amount of the Debt  2.41
      • 5.  Form: 30-Day Validation Notice  2.42
      • 6.  Validation Required in Response to Consumer Dispute  2.43
    • H.  Identity Theft  2.44
      • 1.  Debtor Notice and Reporting Requirements  2.45
      • 2.  Debt Collector Duties in Response to Claim of Identity Theft  2.46
      • 3.  Determining Whether Debtor Remains Responsible for Debt  2.47
      • 4.  Debtor Cross-Complaint Alleging Identity Theft  2.48
  • VI.  LIABILITY
    • A.  Actual Damages  2.49
    • B.  Injunctive Relief  2.50
    • C.  Penalties and Punitive Damages  2.51
    • D.  Attorney Fees  2.52
    • E.  Class Actions  2.53
    • F.  Vicarious Liability  2.54
  • VII.  DEFENSES
    • A.  Collateral Estoppel
      • 1.  No Defense to Debt  2.55
      • 2.  Offset  2.55A
      • 3.  Permissive and Compulsory Counterclaims  2.56
      • 4.  Good Faith  2.56A
      • 5.  The Rooker-Feldman Doctrine  2.57
    • B.  Statutory Safe Harbor for Bona Fide Errors
      • 1.  Standard of Proof/Pleading  2.58
      • 2.  Mistakes of Fact or Law  2.59
      • 3.  15-Day Right to Cure  2.60
    • C.  Statute of Limitations  2.61
    • D.  Litigation Privilege  2.62
    • E.  Debtor’s Conduct  2.63
    • F.  “Reverse” Attorney Fees and Costs  2.64

2A

The Consumer Financial Protection Bureau

June D. Coleman

  • I.  THE DODD-FRANK ACT AND THE CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)  2A.1
  • II.  CFPB SETTING DEBT COLLECTION STANDARDS
    • A.  CFPB Regulations  2A.1A
    • B.  CFPB Setting Standards Through Amicus Briefs  2A.1B
    • C.  CFPB Setting Standards by Providing Clearinghouse for Consumer Complaints  2A.1C
    • D.  CFPB Setting Standards Through Consent Decrees  2A.1D
    • E.  CFPB Providing Information to Consumers  2A.2
      • 1.  Form: CFPB Letter: Tell Me More About This Debt  2A.3
      • 2.  Form: CFPB Letter: This Is Not My Debt  2A.4
      • 3.  Form: CFPB Letter: Here’s How to Contact Me  2A.5
      • 4.  Form: CFPB Letter: Only Contact My Lawyer  2A.6
      • 5.  Form: CFPB Letter: Stop Contacting Me  2A.7
    • F.  CFPB Acts as Clearinghouse for Consumer Complaints [Deleted]  2A.8
  • III.  INVESTIGATIONS BY CFPB
    • A.  Authority to Conduct Investigations  2A.9
    • B.  “Larger Participant” Defined  2A.10
    • C.  Scope of CFPB’s Subpoena and Civil Investigative Demands  2A.11
      • 1.  Focus of CFPB Examination  2A.12
      • 2.  Duration of Examination  2A.13
      • 3.  Examination Procedures  2A.14
      • 4.  Appeal of Adverse Findings  2A.15
      • 5.  Objecting to a CFPB Investigative Demand  2A.16
      • 6.  Treatment of Confidential Information  2A.16A
  • IV.  CFPB’S ENFORCEMENT AUTHORITY  2A.17
    • A.  What Constitutes Unfair Acts or Practices Under Dodd-Frank Act  2A.18
    • B.  What Constitutes a Deceptive Practice  2A.19
    • C.  What Constitutes an Abusive Practice  2A.20
    • D.  Examples of Unfair, Deceptive, or Abusive Acts or Practices  2A.21
    • E.  Recent Cases Involving Unfair and Deceptive Practices  2A.21A
    • F.  Remedies and Civil Penalties
      • 1.  Relief Available  2A.22
      • 2.  Recovery of Costs  2A.23
      • 3.  Civil Penalties  2A.24
      • 4.  Statute of Limitations  2A.25

2B

The Telephone Consumer Protection Act

Eric J. Troutman

Scott J. Hyman

  • I.  PURPOSE AND NATURE OF TCPA
    • A.  Purpose of TCPA  2B.1
    • B.  Role of FCC in Interpreting TCPA and Promulgating Regulations  2B.2
    • C.  Prohibitions of TCPA  2B.3
      • 1.  Calls to Cell Phones: Making Call Prohibited  2B.4
      • 2.  Calls Made or Initiated by Consumers Using a Network or Applications  2B.5
      • 3.  Calls to Landlines: Initiating Call Prohibited  2B.6
      • 4.  “Call” Defined; Includes Text Messages  2B.7
      • 5.  “Prerecorded Voice Message” Defined  2B.8
    • D.  Constitutionality  2B.8A
    • E.  Strict Liability Nature of Statute  2B.9
    • F.  Statute Is Content-Neutral  2B.10
    • G.  Private Right of Action  2B.11
    • H.  Jurisdiction  2B.12
    • I.  Statute of Limitations  2B.13
  • II.  STANDING TO SUE
    • A.  Statutory Standing  2B.14
    • B.  Constitutional Limits on “Person or Entity” Filing Claim  2B.15
      • 1.  Is Bare Statutory Violation Sufficient?  2B.16
      • 2.  “Concrete” Harm in TCPA Context  2B.17
        • a.   Owner of Line Has Standing [Deleted]  2B.18
        • b.   Regular User of Line Has Standing [Deleted]  2B.19
    • C.  Prudential Limits on “Person or Entity” Permitted to File Claim?  2B.20
    • D.  “Called Party” as Limitation on Standing?  2B.21
    • E.  Tendering Payment to Moot TCPA Claim  2B.22
  • III.  DEFENSES TO TCPA CASES  2B.23
    • A.  Express Consent of Called Party  2B.24
      • 1.  “Express Consent” Defined  2B.25
      • 2.  Capturing Numbers Is Not Consent  2B.26
      • 3.  “Called Party” Identified  2B.27
      • 4.  Recycled Cell Phone Numbers  2B.28
      • 5.  Burden of Proof or Persuasion  2B.29
      • 6.  Scope of Consent  2B.30
        • a.  Consent Given to Creditor Protects Third Party Collectors  2B.31
        • b.  Consent Is Specific to Phone Number  2B.32
        • c.  Scope of Consent Is Broad Enough to Include Final Opt-Out Confirmation  2B.33
      • 7.  Timing of Consent  2B.34
      • 8.  Withdrawal or Revocation of Consent  2B.34A
        • a.  Any Reasonable Means Permitted Except When Irrevocable  2B.35
        • b.  Revocation Must Be Express and Not Implied to Be Valid  2B.36
        • c.  Revocation May Be Partial  2B.36A
        • d.  Revocation Is Generally Factual Issue  2B.37
        • e.  Revocation Cannot Be Contracted Around  2B.37A
        • f.  Express Consent Can Be Reconveyed After Revocation  2B.37B
    • B.  Calls Made on Behalf of Federal Government  2B.37C
    • C.  Calls Made Solely to Collect on Government-Backed Debt  2B.37D
    • D.  Bad Faith of Called Party as a Defense  2B.38
    • E.  Regulatory Exemptions
      • 1.  Exemptions Applicable to Calls to Landlines  2B.39
      • 2.  Collection Calls to Landlines Are Categorically Exempt From TCPA Coverage  2B.40
      • 3.  Beware “Dual Purpose” Calls  2B.41
      • 4.  Exemption Has No Application to Cell Phones  2B.42
      • 5.  Established Business Relationship Sufficient to Send Facsimiles  2B.43
  • IV.  AUTOMATED TELEPHONE DIALING SYSTEM (ATDS)  2B.44
    • A.  ATDS Case Law  2B.45
      • 1.  Decisions Focusing on “Capacity”  2B.46
      • 2.  Cases Requiring “Present Capacity” to Dial Randomly or Sequentially  2B.47
      • 3.  Cases Requiring “Present Capacity” to Store Numbers  2B.48
      • 4.  No Decisions on “Potential Capacity” to Dial Randomly or Sequentially  2B.49
      • 5.  Earlier Decisions Requiring “Random” Calls Are Likely Superseded   2B.50
    • B.  FCC Definition of ATDS
      • 1.  Predictive Dialers are Auto Dialers  2B.51
      • 2.  All Equipment Capable of Being Modified to Dial Randomly or Sequentially Are Auto Dialers  2B.52
    • C.  No Human Intervention  2B.53
    • D.  Requirements for Pleading Use of ATDS
      • 1.  Pleading in Connection With Calls  2B.54
      • 2.  Pleading in Connection With Texts  2B.55
      • 3.  Expert Testimony Not Necessary  2B.56
  • V.  TCPA REMEDIES
    • A.  Recoverable Damages
      • 1.  Actual Damages  2B.57
      • 2.  Statutory Damages  2B.58
      • 3.  Treble Damages in Case of Willful or Knowing Violation  2B.59
        • a.  Majority View: Must Have Known That Conduct Would Violate Statute  2B.60
        • b.  Minority View: Must Merely Have Intentionally Dialed Offending Number  2B.61
        • c.  Pleading Facts Showing Willfulness/Knowing  2B.61A
        • d.  Willfulness/Knowing Is Usually Question of Fact  2B.62
    • B.  Attorney Fees  2B.63
    • C.  Injunctive Relief  2B.64
  • VI.  VICARIOUS LIABILITY  2B.65
    • A.  Potential Theories of Vicarious Liability  2B.66
      • 1.  Classical Agency  2B.67
      • 2.  Apparent Authority  2B.68
      • 3.  Ratification  2B.69
    • B.  TCPA Likely Does Not Create Nondelegable Duty  2B.70
  • VII.  TCPA CLASS ACTIONS  2B.71
    • A.  Common Issues Rarely Predominate in TCPA Cases  2B.72
      • 1.  Multisource Cases Not Certified  2B.73
      • 2.  Single-Source Cases Have Been Repeatedly Certified  2B.74
      • 3.  Pursuing Damages for Willful Breach: Basis to Deny Certification?  2B.75
      • 4.  Text String Classes Certifiable?  2B.76
      • 5.  Other Illustrative Circumstances Supporting Certification  2B.76A
    • B.  Defining the Class  2B.77
    • C.  Adequacy  2B.78
    • D.  Ascertainability  2B.79
    • E.  Superiority  2B.80
    • F.  Annihilating Damages: Basis to Deny Certification?  2B.81
  • VIII.  OTHER TCPA LITIGATION ISSUES  2B.82
    • A.  Arbitrability  2B.83
    • B.  Scope of Discovery  2B.84
    • C.  Primary Jurisdiction Doctrine  2B.85
    • D.  Third Party Complaints for Indemnity  2B.86

2C

Privacy Laws Affecting Debtors and Debt Collection

Richard L. Enkelis

  • I.  INTRODUCTION  2C.1
  • II.  SOURCES OF LAW  2C.2
  • III.  GRAMM-LEACH-BLILEY ACT
    • A.  Purpose of Act; Definition of “Financial Institution”  2C.3
    • B.  Financial Privacy Rule  2C.4
    • C.  Sharing Information With Nonaffiliated Third Parties  2C.5
    • D.  Safeguards Rule  2C.6
    • E.  Preemption of State Law  2C.7
    • F.  Consequences of Failure to Comply With GLBA  2C.8
  • IV.  CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT
    • A.  Purpose of Act  2C.9
    • B.  Disclosing Information to Affiliates; Opt-Out Permitted  2C.10
    • C.  Disclosing Information to Nonaffiliates; Opt-In Required  2C.11
    • D.  Penalties  2C.12
  • V.  FAIR CREDIT REPORTING ACT (FCRA) AND FAIR AND ACCURATE CREDIT TRANSACTIONS ACT (FACTA)
    • A.  Purpose of Acts; Definitions  2C.13
    • B.  Requirements for Consumer Reporting Agencies Under FCRA/FACTA  2C.14
    • C.  When Consumer Reporting Agencies May Release Credit Reports  2C.15
    • D.  FCRA Applicability to Debt Collectors  2C.16
    • E.  FCRA Implementing Regulations Applicable to Debt Collectors; Obligation to Investigate Direct Disputes  2C.16A
    • F.  Identity Theft and Other Provisions Under FCRA/FACTA  2C.17
    • G.  Enforcement of FCRA/FACTA  2C.18
  • VI.  CONSUMER CREDIT REPORTING AGENCIES ACT (CCRAA) AND INVESTIGATIVE CONSUMER REPORTING AGENCIES ACT (ICRAA)
    • A.  Purpose of Acts  2C.19
    • B.  The Consumer Credit Reporting Agencies Act (CCRAA)  2C.20
    • C.  Enforcement and Penalties Under CCRAA  2C.21
    • D.  Investigative Consumer Reporting Agencies Act (ICRAA)  2C.22
  • VII.  HIPAA AND HITECH ACT
    • A.  Overview of HIPAA and the HITECH Act Amendments  2C.23
    • B.  HIPAA Privacy Rule  2C.24
    • C.  Application of HIPAA Privacy Rule  2C.25
    • D.  Contracts Between Covered Entities and Business Associates  2C.26
    • E.  Preemption of State Law  2C.27
  • VIII.  CONFIDENTIALITY OF MEDICAL INFORMATION ACT (CMIA)
    • A.  Purpose of Act  2C.28
    • B.  Protected Medical Information  2C.29
    • C.  Entities Covered by CMIA  2C.30
  • IX.  PRETEXTING
    • A.  Federal Law  2C.31
    • B.  California Law  2C.32

3

Starting the Action

Philip J. Rhodes

  • I.  IDENTIFYING THE DEFENDANT
    • A.  Name and Capacity  3.1
    • B.  Sources of Information to Verify Name and Capacity  3.2
    • C.  Use of Doe Defendants’ Fictitious Names When Information Lacking  3.3
    • D.  Suing Different Entities
      • 1.  Individuals  3.4
        • a.  Spouses
          • (1)  Community Property  3.5
          • (2)  Separate Property  3.6
        • b.  Undisclosed Corporate Principal  3.7
        • c.  Corporate Tortfeasors  3.8
      • 2.  General Partnerships  3.9
        • a.  Identify Formation of Partnership  3.10
        • b.  Identify All Partners  3.11
        • c.  Identify Basis of Liability  3.12
      • 3.  Limited Partnerships  3.13
        • a.  Exception to Liability Limit of Limited Partner  3.14
        • b.  Failure to Adhere to Formation Requirements  3.15
      • 4.  Limited Liability Partnerships  3.16
        • a.  Registration Requirements  3.17
        • b.  Effect of Failure to Register  3.18
      • 5.  Limited Liability Companies  3.19
        • a.  Limited Liability  3.20
        • b.  Alter Ego Liability  3.21
        • c.  Guarantor Liability  3.22
      • 6.  Corporations  3.23
  • II.  SUBJECT MATTER JURISDICTION AND VENUE  3.24
    • A.  Jurisdictional Limits
      • 1.  Superior Court  3.25
      • 2.  Limited Civil Cases  3.26
      • 3.  Small Claims Court  3.27
    • B.  Jurisdictional Classification  3.28
    • C.  Determining Appropriate Classification  3.29
    • D.  Statutory Venue Rules
      • 1.  Actions Against Individuals  3.30
        • a.  Restricted Venue in Consumer Cases  3.31
        • b.  Restricted Venue in Unruh Act Cases  3.32
        • c.  Restricted Venue in Automobile Sales Finance Act Cases  3.33
        • d.  Pleading Procedure for Restricted Venue Cases  3.34
        • e.  Waiver of Improper Venue in Restricted Venue Cases  3.35
        • f.  Narrower Federal Venue Restriction  3.36
        • g.  Special Circumstances
          • (1)  Defendants of Unknown Residence  3.37
          • (2)  Nonresident Defendants  3.38
          • (3)  Departing Individuals  3.39
          • (4)  Actions Against Multiple Defendants  3.40
      • 2.  Actions Against Corporations or Other Associations  3.41
      • 3.  Actions Against Both Individual and Corporate Defendants  3.42
    • E.  Contractual Venue Provisions
      • 1.  Choice of Venue Provision Not Enforceable  3.43
      • 2.  Specificity Required to Establish Place of Performance  3.44
      • 3.  Place of Performance for Payment of Money  3.45
    • F.  Strategic Considerations Regarding Venue  3.46
    • G.  Changing Venue
      • 1.  Improper Venue  3.47
      • 2.  Forum Non Conveniens  3.48
      • 3.  Defendant’s Challenge to Improper Venue  3.49
  • III.  STATUTE OF LIMITATIONS
    • A.  Determining Applicable Time Period  3.50
    • B.  Accrual Rules  3.51
      • 1.  Anticipatory Breach  3.52
      • 2.  Installment Payments  3.53
      • 3.  Discovery Rule  3.54
      • 4.  Account Stated and Book Accounts  3.55
  • IV.  ECONOMIC LITIGATION RULES IN LIMITED CIVIL CASES  3.56
    • A.  Applicable Actions  3.57
    • B.  Pleading Limitations  3.58
    • C.  Discovery Limitations  3.59
      • 1.  Waiver of Limitations Available  3.60
      • 2.  Discovery Alternatives—The Case Questionnaire  3.61
      • 3.  Form: Case Questionnaire (Judicial Council Form DISC-010)  3.62
    • D.  Trial Preparation and Procedure  3.63
      • 1.  Evidentiary Disclosures  3.64
        • a.  Required Content  3.65
        • b.  Exceptions  3.66
        • c.  Penalty for Noncompliance  3.67
      • 2.  Direct Testimony Alternative  3.68
      • 3.  “Fast Track” Local Rules  3.69
  • V.  ANALYZING APPROPRIATE CAUSES OF ACTION
    • A.  Common Counts  3.70
      • 1.  Advantages and Disadvantages
        • a.  Fact-Specific Pleading Not Required  3.71
        • b.  Common Counts May Support Deficient Contract Causes of Action  3.72
        • c.  Attorney Fees Award  3.73
        • d.  May Prevent Recovery of Prejudgment Interest at Contract Rate  3.74
      • 2.  Description of Common Counts
        • a.  Book Account  3.75
        • b.  Mutual, Open, and Current Account  3.76
          • (1)  Agreement of Mutual Setoff  3.77
          • (2)  Noncash Credits Required  3.78
        • c.  Account Stated  3.79
        • d.  Money Had and Received  3.80
        • e.  Work, Labor, and Services  3.81
        • f.  Goods Sold and Delivered  3.82
        • g.  Money Lent; Money Paid or Expended  3.83
    • B.  Contract Actions
      • 1.  Existence of Contract  3.84
        • a.  Written Contracts  3.85
        • b.  Oral Contracts  3.86
      • 2.  Performance  3.87
        • a.  Excuse or Prevention  3.88
        • b.  Waiver  3.89
      • 3.  Breach  3.90
      • 4.  Causation  3.91
    • C.  Actions Against Guarantors  3.92
      • 1.  Implied Condition of Guaranty: No Action to Recover Until Primary Obligor Defaults  3.93
      • 2.  Consideration Required  3.94
      • 3.  When Writing Is Required  3.95
    • D.  Prejudgment Interest
      • 1.  Interest Begins Accruing on Specific Date  3.96
      • 2.  Exception: Prevention by Law or Creditor Action  3.97
      • 3.  Rate of Prejudgment Interest
        • a.  Express Contract Rate  3.98
        • b.  Legal Rate  3.99
  • VI.  DRAFTING THE COMPLAINT: PRELIMINARY ALLEGATIONS
    • A.  Plaintiff’s Capacity or Standing to Sue  3.100
      • 1.  Corporate Good Standing Required  3.101
      • 2.  Licensure Good Standing  3.102
    • B.  Defendant’s Capacity  3.103
    • C.  Federal Court Jurisdiction  3.104
    • D.  Venue  3.105
    • E.  Alter Ego Allegation  3.106
      • 1.  Alter Ego Factors  3.107
      • 2.  Alter Ego Not Limited to Principals  3.108
      • 3.  Postjudgment Amendment to Add Alter Ego  3.109
      • 4.  Checklist: 28 Ways to Show Alter Ego  3.110
    • F.  Fictitious Name Allegation  3.111
    • G.  Assignment Allegation  3.112
  • VII.  COMPLAINT FORMS
    • A.  Judicial Council Form Complaints
      • 1.  Form: Complaint-Contract (Judicial Council Form PLD-C-001)  3.113
      • 2.  Form: Cause of Action—Common Counts (Judicial Council Form PLD-C-001(2))  3.114
    • B.  Attorney-Drafted Complaint
      • 1.  Form: Caption and Introductory Language  3.115
      • 2.  Form: Identification of Plaintiff  3.116
      • 3.  Form: Identification of Defendant  3.117
      • 4.  Form: Venue  3.118
      • 5.  Form: Cause of Action for Breach of Written Contract  3.119
      • 6.  Common Count Causes of Action
        • a.  Form: Money Had and Received  3.120
        • b.  Form: Goods Sold and Delivered at Agreed Price  3.121
        • c.  Form: Reasonable Value of Goods Sold and Delivered  3.122
        • d.  Form: Work, Labor, Services, and Materials  3.123
        • e.  Form: Reasonable Value of Work, Labor, Services, and Materials  3.124
        • f.  Form: Account Stated  3.125
        • g.  Form: Book Account  3.126
        • h.  Form: Statement of Amount Due—For Use With All Common Counts  3.127
        • i.  Form: Attorney Fees—For Use With All Common Counts  3.128
        • j.  Form: Damages—For Use With All Common Counts  3.129
      • 7.  Form: Cause of Action Against Surety on Continuing Guaranty  3.130
      • 8.  Form: Cause of Action Against Defendants on Promissory Note  3.131
      • 9.  Form: Cause of Action on Not Sufficient Funds Check  3.132
      • 10.  Form: Prayer for Relief  3.133
  • VIII.  SERVICE OF PROCESS  3.134

4

Representing the Debtor Before Judgment

Philip J. Rhodes

Roger R. Rubin

  • I.  ROLE OF DEBTOR’S COUNSEL: EVALUATING DEBTOR’S CIRCUMSTANCES  4.1
    • A.  Checklist: Master Checklist for Analyzing Client’s Debt Problem and Handling Collection Action  4.2
    • B.  Assessing the Potential Client  4.3
    • C.  Assessing the Primary Problem  4.4
      • 1.  Stage of Proceedings  4.5
      • 2.  Collateral for Debt  4.6
    • D.  Assessing Overall Financial Situation
      • 1.  Obtaining Necessary Information  4.7
      • 2.  Analyzing the Information  4.8
      • 3.  Form: List of Documents to Bring to Interview  4.9
      • 4.  Debtor’s Questionnaire
        • a.  Form: Instructions for Debtor’s Questionnaire  4.10
        • b.  Form: Questionnaire  4.11
        • c.  Form: Oath to Questionnaire  4.12
        • d.  Summary of Business Interests  4.13
      • 5.  Form: Budget Questionnaire  4.14
      • 6.  Interview Questions on Specific Collection Action  4.15
      • 7.  Form: Attorney’s Summary of Debtor’s Questionnaire for Bankruptcy Schedules  4.16
    • E.  Easing Fears and Correcting Misinformation  4.17
      • 1.  Ending Creditor Harassment  4.18
      • 2.  Dealing With Bank Offsets  4.19
    • F.  Client’s Objectives  4.20
      • 1.  Resolving Absolutely Hopeless Financial Situation  4.21
      • 2.  Buying Time to Work Out Solution  4.22
      • 3.  Saving Assets Serving as Collateral  4.23
      • 4.  Protecting Debtor’s Assets and Preserving Exempt Property  4.23A
        • a.  Debtor’s Monthly Earnings  4.23B
        • b.  Debtor’s Personal Property Exemptions  4.23C
          • (1)  Accumulated Funds in Bank Accounts or Securities  4.23D
          • (2)  Safe Deposit Box  4.23E
          • (3)  Tools of the Trade  4.23F
          • (4)  Separate Accounts for Direct Deposit Earnings  4.23G
          • (5)  Retirement Benefits; Student Financial Aid  4.23H
        • c.  Debtor’s Real Property  4.23I
      • 5.  Dealing With Nondischargeable Debt [Deleted]  4.24
  • II.  ACCEPTING OR DECLINING REPRESENTATION  4.25
  • III.  DEFENSE STRATEGIES  4.26
    • A.  Aggressive Defense  4.27
      • 1.  Goods or Services Not Satisfactory  4.28
      • 2.  Deficiency Claim on Secured Debt Barred  4.29
      • 3.  Adhesion Contract  4.30
      • 4.  Unconscionability  4.31
      • 5.  Essential Contract Element Reserved or Uncertain  4.32
      • 6.  Void or Voidable Contract  4.33
      • 7.  Violation of Consumer Protection Statute Bars Claim  4.34
      • 8.  Interest and Finance Charges
        • a.  Computing and Quoting Finance Charges  4.35
          • (1)  California Law  4.36
          • (2)  Federal Law  4.37
        • b.  California Consumer Loan Regulation  4.38
          • (1)  California Financing Law  4.39
          • (2)  Industrial Loan Law  4.40
          • (3)  Credit Union Law  4.41
        • c.  Finance Charges in Retail Installment Sales  4.42
          • (1)  Retail Installment Contracts  4.43
          • (2)  Retail Installment Accounts  4.44
            • (a)  Methods of Calculation  4.45
            • (b)  Chart: Calculation Methods Compared  4.46
        • d.  Prejudgment Interest  4.47
        • e.  Attorney Fees  4.48
    • B.  Cost-Effective Minimum Defense  4.49
    • C.  Settle the Action  4.50
    • D.  Do Nothing  4.51
    • E.  Other Alternatives  4.52
  • IV.  METHODS OF DEFENSE  4.53
    • A.  Initial Response to Summons and Complaint  4.54
    • B.  Bill of Particulars
      • 1.  Purpose; Legal Scope  4.55
      • 2.  Use in Collection Actions  4.56
      • 3.  Requirements for Demand for Bill of Particulars  4.57
      • 4.  Delivery of Bill; Requirements  4.58
      • 5.  Motion for Further Bill of Particulars  4.59
      • 6.  Failure to Comply With Demand  4.60
      • 7.  Forms
        • a.  Form: Demand for Bill of Particulars  4.61
        • b.  Form: Bill of Particulars  4.62
        • c.  Form: Notice of Motion for Order for Further Bill of Particulars  4.63
    • C.  Answer
      • 1.  Denial of Material Allegations  4.64
      • 2.  Verified Answer  4.65
      • 3.  Considerations When Preparing Answer  4.66
      • 4.  Denial of Amount Claimed  4.67
      • 5.  Denial on Information and Belief  4.68
      • 6.  General Denials
        • a.  Legal Basis  4.69
        • b.  Form: General Denial (Judicial Council Form PLD-050)  4.70
    • D.  Affirmative Defenses  4.71
      • 1.  Statute of Limitations  4.72
      • 2.  Mistake, Fraud, Duress, and Undue Influence  4.73
      • 3.  Estoppel, Waiver, Laches, and Unclean Hands  4.74
      • 4.  Statute of Frauds  4.75
      • 5.  Illegality of Contract  4.76
      • 6.  Unconscionability  4.77
      • 7.  Failure of Condition Precedent or Subsequent  4.78
      • 8.  Excuse for Nonperformance  4.79
      • 9.  Setoff  4.80
      • 10.  Payment  4.81
      • 11.  Release, Novation, or Accord and Satisfaction  4.82
      • 12.  Common Count Defenses  4.83
      • 13.  Usury  4.84
        • a.  Credit Sales Not Subject to Usury Laws  4.85
        • b.  Lenders Exempt From Usury Laws  4.86
        • c.  Loans Exempt From Usury Laws  4.87
        • d.  Items Covered by Usury Laws  4.88
        • e.  Those Against Whom Usury May Be Asserted  4.89
        • f.  Remedies  4.90
    • E.  Cross-Complaints  4.91
      • 1.  Compulsory Cross-Complaints  4.92
      • 2.  Permissive Cross-Complaints  4.93
      • 3.  Cross-Complaint Procedure  4.94
    • F.  Demand Arbitration  4.95
      • 1.  Contractual  4.96
      • 2.  Judicial  4.97
    • G.  Discovery  4.97A
    • H.  Case Management and Trial Setting  4.97B
    • I.  Settlement  4.98
      • 1.  Negotiation Tactics  4.99
      • 2.  Stipulated Judgment
        • a.  Procedure for Stipulation for Entry of Judgment or Stipulated Judgment  4.100
        • b.  Form: Stipulation for Entry of Judgment  4.101
      • 3.  Ancillary Agreements  4.102
      • 4.  Settlement and Release Agreement Form
        • a.  Form: Heading and Recitals  4.103
        • b.  Form: Effective Date  4.104
        • c.  Form: Payments  4.105
        • d.  Form: Stipulations  4.106
        • e.  Form: Guaranties  4.107
        • f.  Form: Representations and Warranties  4.108
        • g.  Form: No Modification  4.109
        • h.  Form: Events of Default  4.110
        • i.  Form: Remedies  4.111
        • j.  Form: Remedies Cumulative; No Waiver  4.112
        • k.  Form: Waiver and Release  4.113
        • l.  Form: Advice of Counsel  4.114
        • m.  Form: No Admission of Liability  4.115
        • n.  Form: Attorney Fees  4.116
        • o.  Form: Confidentiality  4.117
        • p.  Form: Miscellaneous Provisions  4.118
        • q.  Form: Signature  4.119
      • 5.  Confession of Judgment  4.120
        • a.  Form: Confession of Judgment Statement  4.121
        • b.  Form: Attorney’s Declaration in Support of Statement Confessing Judgment  4.122
        • c.  Form: Judgment  4.123
    • J.  Assignment for Benefit of Creditors  4.124
      • 1.  Bankruptcy-Like Benefits  4.125
      • 2.  Advantage of Flexibility  4.126
      • 3.  Assignment Agreement Forms
        • a.  Form: General Assignment  4.127
        • b.  Form: Minutes of the Meeting  4.128
        • c.  Form: Stockholders’ Consent to Assignment  4.129
  • V.  TRIAL PREPARATION AND TRIAL
    • A.  Trial Preparation  4.130
    • B.  Trial  4.131
    • C.  Posttrial Memorandum of Costs and Attorney Fees  4.132

4A

Representing the Debtor After Entry of Money Judgment

Roger R. Rubin

  • I.  INTRODUCTION TO REPRESENTING THE DEBTOR AFTER ENTRY OF JUDGMENT  4A.1
  • II.  CHECKLIST: MASTER CHECKLIST FOR ANALYZING CLIENT’S RIGHTS AND REMEDIES AFTER ENTRY OF JUDGMENT  4A.2
  • III.  JUDGMENT DEBTOR’S RESPONSE
    • A.  Is Judgment Valid and Enforceable?  4A.3
    • B.  Service of Pleadings and Papers  4A.4
    • C.  Grounds to Attack the Judgment
      • 1.  Motion for New Trial  4A.5
      • 2.  Motion to Vacate and Enter Different Judgment  4A.6
      • 3.  Motion to Correct Clerical Error  4A.7
      • 4.  Motion for Relief From Default or Default Judgment Due to Mistake, Inadvertence, Surprise, or Excusable Neglect  4A.8
        • a.  Discretionary Relief  4A.9
          • (1)  Mistake  4A.10
          • (2)  Excusable Neglect  4A.11
          • (3)  Examples of Excusable Neglect  4A.12
        • b.  Mandatory Relief  4A.13
        • c.  Timing: When to Request Relief
          • (1)  Six-Month Time Limit  4A.14
          • (2)  Diligence Requirement—Motion Must Be Made Within “Reasonable” Time  4A.15
        • d.  Equitable Relief in Cases of Extrinsic Fraud or Mistake
          • (1)  Court’s Equitable Authority  4A.16
          • (2)  No Time Limitation  4A.17
          • (3)  Examples
            • (a)  Extrinsic Fraud Found  4A.18
            • (b)  No Extrinsic Fraud Found  4A.19
            • (c)  Extrinsic Mistake  4A.20
        • e.  Relief if Default Judgment Is Void
          • (1)  Relief May Be Requested at Any Time  4A.21
          • (2)  Examples  4A.22
        • f.  Relief if No Actual Notice to Defendant  4A.23
          • (1)  Equitable Authority  4A.24
          • (2)  Timing: When to Request Relief if No Actual Notice to Defendant
            • (a)  CCP §473.5  4A.25
            • (b)  Timing of Motion for Equitable Relief  4A.26
        • g.  Procedure: How to Obtain Relief From Default or Default Judgment
          • (1)  Motion Under CCP §473(b)  4A.27
            • (a)  Opposition  4A.28
            • (b)  Hearing and Evidence  4A.29
          • (2)  Motion Under CCP §473.5  4A.30
          • (3)  Renewal if Motion Denied  4A.31
        • h.  Appellate Review of Order Granting or Denying Relief From Default Judgment  4A.32
        • i.  Forms for Relief From Default
          • (1)  Form: Notice of Motion to Set Aside Default and Default Judgment  4A.33
          • (2)  Form: Declaration Supporting Motion to Set Aside Entry of Default and Default Judgment  4A.34
          • (3)  Form: Order Staying Execution and Shortening Time  4A.35
          • (4)  Form: Order Setting Aside Entry of Default and Default Judgment  4A.36
      • 5.  Appeal of Money Judgment  4A.37
    • D.  Amount Required to Fully Satisfy Judgment  4A.38
      • 1.  Postjudgment Interest  4A.39
      • 2.  Sample Form: Payment Record for Judgment  4A.40
      • 3.  Postjudgment Costs  4A.41
      • 4.  Attorney Fees  4A.42
  • IV.  PROTECTING THE JUDGMENT DEBTOR’S ASSETS
    • A.  Procedures Judgment Creditor May Use to Satisfy Judgment  4A.43
    • B.  Methods Judgment Creditor May Use to Locate Debtor’s Assets  4A.44
    • C.  Tools for Protecting Debtor’s Assets  4A.45
  • V.  LIENS UNDER THE ENFORCEMENT OF JUDGMENT LAW
    • A.  Liens on Real Property  4A.46
    • B.  Liens on Personal Property  4A.47
  • VI.  REPRESENTING THE DEBTOR AFTER EXECUTION LEVY
    • A.  Writ and Levy Procedure  4A.48
    • B.  Types of Property Not Subject to Execution  4A.49
    • C.  Remedies Against Enforcement of Writ  4A.50
      • 1.  Motion to Recall and Quash Writ of Execution  4A.51
      • 2.  Claiming Exemption and Preserving Exempt Property  4A.52
        • a.  Levy on Real Property  4A.53
        • b.  Levy on Personal Property
          • (1)  Common Personal Property Exemptions  4A.54
          • (2)  Procedure for Claiming Personal Property Exemptions  4A.54A
        • c.  Form: Identifying Debtor’s Exempt Property  4A.55
    • D.  Dealing With Bank Levies  4A.56
    • E.  Dealing With Wage Garnishments
      • 1.  Exemptions From Wage Garnishments and Procedure for Claiming  4A.57
      • 2.  Practice Tips for Claiming Exemptions From Wage Garnishment or Paid Earnings Levy  4A.58
  • VII.  FURTHER LITIGATION THROUGH OTHER REMEDIES
    • A.  Written Interrogatories—Document Inspection  4A.59
    • B.  Orders of Examination  4A.60
    • C.  Turnover Orders  4A.60A
    • D.  Charging Orders  4A.60B
    • E.  Liens in Pending Actions  4A.61
    • F.  Assignment Orders  4A.62
  • VIII.  SATISFACTION OF JUDGMENT
    • A.  Money Judgments  4A.63
    • B.  Motion for Payments in Installments  4A.64

5

Discovery in Debt Collection Actions

Kenneth H. Brown

  • I.  USING DISCOVERY
    • A.  Discovery in Debt Collection Actions  5.1
    • B.  Limitations on Discovery  5.2
    • C.  Timing Considerations  5.3
  • II.  DISCOVERY TOOLS
    • A.  Requests for Admission (CCP §§2033.010–2033.080)  5.4
      • 1.  Use of Requests for Admission  5.5
      • 2.  Binding Nature of Admission  5.6
      • 3.  Service and Filing  5.7
      • 4.  Time to Respond  5.8
      • 5.  Effect of Failure to Timely Respond  5.9
      • 6.  Limitations on Use of Requests for Admission  5.10
      • 7.  Judicial Council Request for Admission Forms
        • a.  Using Judicial Council Forms  5.11
        • b.  Form: Requests for Admission (Judicial Council Form DISC-020)  5.12
      • 8.  Attorney-Drafted Request for Admission
        • a.  Format  5.13
        • b.  Form: Request for Admission  5.14
    • B.  Interrogatories (CCP §§2030.010–2030.410)  5.15
      • 1.  Use of Interrogatories  5.16
      • 2.  Service and Filing  5.17
      • 3.  Time to Respond  5.18
      • 4.  Effect of Failure to Timely Respond  5.19
      • 5.  Limitations on Use of Interrogatories  5.20
      • 6.  Form: Specially Prepared Interrogatories  5.21
    • C.  Discovery of Documents and Electronically Stored Information (CCP §§2031.010–2031.510)  5.22
      • 1.  Use of Demand for Inspection  5.23
      • 2.  Service and Filing  5.24
      • 3.  Time to Respond  5.25
      • 4.  Effect of Failure to Timely Respond  5.26
      • 5.  Limitations on Discovery Requests  5.27
      • 6.  Protective Order for Electronically Stored Information  5.27A
      • 7.  Demand Forms
        • a.  Form: Stipulation for Inspection, Copying, Testing, or Sampling  5.28
        • b.  Form: Demand for Inspection, Copying, Testing, or Sampling  5.29
    • D.  Depositions (CCP §§2025.010–2025.620)  5.30
      • 1.  Use of Depositions  5.31
      • 2.  Service and Filing  5.32
      • 3.  Time to Respond  5.33
      • 4.  Limitations on Use of Depositions  5.34
      • 5.  Deposition Forms
        • a.  Form: Notice of Deposition (CCP §2025.220(a))  5.35
        • b.  Form: Civil Subpoena (Duces Tecum) for Personal Appearance and Production of Documents and Things (Judicial Council Form SUBP-002)  5.36
        • c.  Form: Stipulation for Taking Deposition (CCP §2016.030)  5.37
      • 6.  Subpoena of Consumer’s Personal Records  5.38
        • a.  Form: Notice of Privacy Rights (CCP §1985.3)  5.39
        • b.  Form: Proof of Service of Notice of Privacy Rights  5.40
  • III.  EXTENSION OF TIME TO RESPOND TO DISCOVERY SERVED BY MAIL  5.41

6

Prejudgment Remedies

Gregory C. Nuti

  • I.  ATTACHMENT
    • A.  Overview  6.1
    • B.  Arbitration and Other Procedural Considerations  6.2
    • C.  When Attachment Is Available  6.3
    • D.  Defendants Subject to Writ of Attachment
      • 1.  Natural Persons
        • a.  Debts Incurred for Personal, Family, or Household Purposes  6.4
        • b.  Debts Incurred in Connection With Trade, Business, or Profession  6.5
        • c.  Out-of-State Residents  6.6
      • 2.  Corporations and Other Legal Entities Qualified to Do Business in California  6.7
      • 3.  Nonqualified Foreign Entities  6.8
    • E.  Property Subject to Attachment
      • 1.  Natural Persons
        • a.  Generally  6.9
        • b.  Community Property  6.10
        • c.  Exemptions  6.11
      • 2.  Corporations and Other Legal Entities  6.12
    • F.  Amount Secured by Attachment Lien
      • 1.  Generally  6.13
      • 2.  Unlawful Detainer Actions  6.14
    • G.  Characteristics of Attachment Lien
      • 1.  Effect of Lien  6.15
      • 2.  Duration of Lien  6.16
    • H.  Obtaining Writ of Attachment
      • 1.  Timing  6.17
      • 2.  Plaintiff’s Required Papers  6.18
        • a.  Notice of Hearing  6.19
        • b.  Application  6.20
        • c.  Declaration  6.21
        • d.  Memorandum in Support of Motion  6.22
      • 3.  Defendant’s Notice of Opposition  6.23
      • 4.  Claim of Exemption
        • a.  Natural Persons Only  6.24
        • b.  Failure to Assert Exemption  6.25
        • c.  Real Property Exemptions  6.26
        • d.  Property Not Included in Plaintiff’s Application  6.27
        • e.  Change in Circumstances  6.28
        • f.  Plaintiff’s Opposition to Claim of Exemption  6.29
      • 5.  Hearing
        • a.  Type of Hearing  6.29A
        • b.  Issuance of Right to Attach Order  6.30
        • c.  Continuances  6.31
      • 6.  Effects of Court’s Findings  6.32
      • 7.  Obtaining Ex Parte Writ of Attachment
        • a.  Required Showing  6.33
        • b.  Notice  6.34
        • c.  Hearing  6.35
        • d.  Nonresident Defendant  6.36
      • 8.  Obtaining Temporary Protective Order (TPO)
        • a.  Effect of TPO  6.37
        • b.  Procedure  6.38
        • c.  Required Showing  6.39
        • d.  Service  6.40
        • e.  Defendant’s Ability to Write Checks Despite TPO  6.41
        • f.  Expiration  6.42
        • g.  Termination  6.43
        • h.  Checklist: Documents Needed to Obtain TPO  6.44
      • 9.  The Undertaking
        • a.  Purpose  6.45
        • b.  Amount  6.46
        • c.  Substitution of Attached Property for Undertaking  6.47
        • d.  Substitution of TPO With Undertaking  6.48
        • e.  Filing Requirements  6.49
    • I.  Obtaining Additional Writs of Attachment
      • 1.  Procedural Considerations  6.50
      • 2.  Claiming Exemptions Under Additional Ex Parte Writs  6.51
    • J.  Levying on Writ of Attachment
      • 1.  Contents of Writ  6.52
      • 2.  Levying Officer  6.53
      • 3.  Instructions for Levying Officer  6.54
      • 4.  Costs  6.55
      • 5.  Checklist: Documents to Provide to Levying Officer  6.56
      • 6.  Timing  6.57
      • 7.  Personal Property in Defendant’s Private Place  6.58
      • 8.  Service on Third Party and Defendant  6.59
      • 9.  Levy by Process Server  6.60
        • a.  Property Subject to Levy  6.61
        • b.  Documents Provided by Process Server to Levying Officer  6.62
      • 10.  Custody and Control of Attached Property  6.63
      • 11.  Return Writ and Inventory  6.64
      • 12.  Liability of Levying Officer  6.65
      • 13.  Methods of Levy  6.66
      • 14.  Effect of Levy: Attachment Liens  6.67
    • K.  Property in Third Party’s Possession
      • 1.  Service of Order for Examination Creates Lien  6.68
      • 2.  Place of Examination  6.69
      • 3.  Failure to Appear  6.70
      • 4.  Determining Competing Claims  6.71
      • 5.  Protective Order Against Third Party  6.72
      • 6.  Postexamination Results  6.73
      • 7.  Bringing Creditor’s Suit
        • a.  Alternative to Third Party Examination  6.74
        • b.  Limitations Period  6.75
        • c.  Judgment  6.76
      • 8.  Obtaining Lien on or Intervening in Pending Action Between Defendant and Third Party
        • a.  Subject Property Must Be Attachable  6.77
        • b.  Exception for Arbitrations  6.78
        • c.  Procedure for Obtaining Lien  6.79
        • d.  Effect of Lien  6.80
        • e.  Exemptions  6.81
        • f.  Intervention  6.82
      • 9.  Third Party Duties and Liabilities After Levy  6.83
      • 10.  Garnishee’s Memorandum
        • a.  Third Party’s Delivery to Levying Officer  6.84
        • b.  Exception for Banks  6.85
        • c.  Return of Memorandum  6.86
        • d.  Liability for Disclosure  6.87
    • L.  Treatment of Attached Property  6.88
    • M.  Releasing Excessive Attachment
      • 1.  Property Subject to Release  6.89
      • 2.  Defendant Prevails in Action  6.90
    • N.  Wrongful Attachment
      • 1.  When Attachment Is Wrongful  6.91
      • 2.  Liability for Wrongful Attachment  6.92
    • O.  Nonstatutory Attachment Not Permitted  6.93
    • P.  Appeals
      • 1.  Appealing Right to Attach Order  6.94
      • 2.  Appealing Judgment on Underlying Claim  6.95
    • Q.  Judicial Council Forms for Attachment
      • 1.  Form: Application for Right to Attach Order, Temporary Protective Order, Etc. (Judicial Council Form AT-105)  6.96
      • 2.  Form: Notice of Application and Hearing for Right to Attach Order and Writ of Attachment (Judicial Council Form AT-115)  6.97
      • 3.  Form: Right to Attach Order After Hearing and Order for Issuance of Writ of Attachment (Judicial Council Form AT-120)  6.98
      • 4.  Form: Ex Parte Right to Attach Order and Order for Issuance of Writ of Attachment (Judicial Council Form AT-125)  6.99
      • 5.  Form: Writ of Attachment (Judicial Council Form AT-135)  6.100
      • 6.  Application and Order for Appearance and Examination  6.101
      • 7.  Form: Temporary Protective Order (Judicial Council Form AT-140)  6.102
      • 8.  Form: Application and Notice of Hearing for Order to Terminate, Modify, or Vacate Temporary Protective Order (Judicial Council Form AT-145)  6.103
      • 9.  Form: Order to Terminate, Modify, or Vacate Temporary Protective Order (Judicial Council Form AT-150)  6.104
      • 10.  Form: Notice of Opposition to Right to Attach Order and Claim of Exemption (Judicial Council Form AT-155)  6.105
      • 11.  Form: Undertaking by Personal Sureties (Judicial Council Form AT-160/CD-140)  6.106
      • 12.  Form: Notice of Attachment (Judicial Council Form AT-165)  6.107
      • 13.  Form: Application to Set Aside Right to Attach Order and Release Attached Property, Etc. (Judicial Council Form AT-170)  6.108
      • 14.  Form: Order to Set Aside Attachment, to Substitute Undertaking, Etc. (Judicial Council Form AT-175)  6.109
      • 15.  Notice of Lien  6.110
  • II.  WRITS OF POSSESSION
    • A.  Overview  6.111
    • B.  Checklist: Prefiling Considerations  6.112
    • C.  When Available  6.113
    • D.  Defendants Subject to Writ of Possession  6.114
    • E.  Application for Writ of Possession
      • 1.  Timing  6.115
      • 2.  Contents  6.116
      • 3.  Notice of Hearing  6.117
      • 4.  Service  6.118
      • 5.  Defendant’s Notice of Opposition  6.119
      • 6.  Plaintiff’s Reply Memorandum  6.119A
      • 7.  Hearing  6.120
      • 8.  Issuance of Writ of Possession  6.121
      • 9.  Contents of Writ  6.122
      • 10.  Turnover Orders  6.123
      • 11.  Termination of TRO  6.124
      • 12.  Endorsement for Levy at Private Place Not Specified in Writ  6.125
    • F.  Effect of Court’s Determinations  6.126
    • G.  Obtaining Ex Parte Writ of Possession
      • 1.  Required Showing  6.127
      • 2.  Service of Ex Parte Writ  6.128
      • 3.  Hearing  6.129
    • H.  Temporary Restraining Orders
      • 1.  Considerations  6.130
      • 2.  Procedure  6.131
      • 3.  Scope of TRO  6.132
      • 4.  Ex Parte TRO
        • a.  Grounds  6.133
        • b.  Notice  6.134
        • c.  Subsequent Proceedings  6.135
    • I.  Undertakings
      • 1.  Purpose  6.136
      • 2.  Amount  6.137
      • 3.  Defendant’s Undertaking, or “Redelivery Bond”  6.138
      • 4.  Timing of Undertaking  6.139
      • 5.  Undertaking Disputes
        • a.  Sufficiency of Plaintiff’s Undertaking  6.140
        • b.  Sufficiency of Defendant’s Undertaking  6.141
      • 6.  Strategic Considerations  6.142
    • J.  Levy Procedures
      • 1.  Coordinating With Levying Officer  6.143
      • 2.  Dwellings  6.144
      • 3.  Private Places  6.145
      • 4.  Delivery of Writ and Undertaking to Defendant  6.146
      • 5.  Return of Writ to Court  6.147
      • 6.  Cost Considerations  6.148
    • K.  Treatment of Property After Levy
      • 1.  Property in Possession of Levying Officer  6.149
        • a.  Delivery to Plaintiff  6.150
        • b.  Delivery to Defendant  6.151
      • 2.  Perishable or Depreciating Property  6.152
      • 3.  Third Party Claims  6.153
    • L.  Plaintiff’s Failure to Prevail  6.154
    • M.  Unsuccessful Levy  6.155
    • N.  Judicial Council Forms for Writs of Possession
      • 1.  Form: Application for Writ of Possession After [Ex Parte] Hearing and for Temporary Restraining Order (Judicial Council Form CD-100)  6.156
      • 2.  Form: Declaration for Ex Parte Writ of Possession (Judicial Council Form CD-180)  6.157
      • 3.  Form: Application for Temporary Restraining Order (Judicial Council Form CD-190)  6.158
      • 4.  Form: Notice of Application for Writ of Possession and Hearing (Judicial Council Form CD-110)  6.159
      • 5.  Memorandum in Support of Motion  6.160
      • 6.  Form: Order for Writ of Possession (Judicial Council Form CD-120)  6.161
      • 7.  Form: Temporary Restraining Order (Judicial Council Form CD-200)  6.162
      • 8.  Form: Writ of Possession (Judicial Council Form CD-130)  6.163
      • 9.  Form: Application and Notice of Application and Hearing for Order to Quash Ex Parte Writ of Possession (Judicial Council Form CD-160)  6.164
      • 10.  Form: Notice of Exception to Sureties and Hearing on Justification of Sureties (Judicial Council Form CD-150) [Deleted]  6.165
      • 11.  Form: Order for Release and Redelivery of Property (Judicial Council Form CD-170)  6.166

7

Obtaining, Renewing, and Satisfying Judgment

Richard L. Enkelis

  • I.  SCOPE  7.1
  • II.  DISCOVERY
    • A.  Statutory Authority  7.2
    • B.  Particular Applicability of Requests for Admissions  7.3
  • III.  DEFAULT JUDGMENTS
    • A.  Default and Debt Collection Practice  7.4
    • B.  Checklist: Plaintiff’s Procedural Guide for Obtaining Default Judgment  7.5
    • C.  Entry of Default  7.6
    • D.  Declaration of Nonmilitary Status  7.7
    • E.  Form: Request for Entry of Default (Application to Enter Default) (Judicial Council Form CIV-100)  7.8
    • F.  Default Judgment  7.9
    • G.  Relief From Default
      • 1.  Types of Motions  7.10
      • 2.  Small Claims Actions  7.11
  • IV.  OTHER JUDGMENTS WITHOUT TRIAL
    • A.  Judgment by Consent or Stipulation
      • 1.  In General  7.12
      • 2.  Local Rules  7.13
      • 3.  Notice of Settlement or Request for Dismissal  7.14
      • 4.  Form: Stipulation for Judgment  7.15
      • 5.  Form: Judgment Pursuant to Stipulation  7.16
    • B.  Acceptance of Offer to Compromise Under CCP §998
      • 1.  Time Limitations; Contents of Offer  7.17
      • 2.  Form: Offer to Compromise Under CCP §998  7.18
      • 3.  Form: Notice of Acceptance of Offer to Compromise  7.19
    • C.  Confession of Judgment  7.20
    • D.  Dismissal  7.21
    • E.  Judgment on the Pleadings  7.22
    • F.  Summary Judgment and Summary Adjudication  7.23
      • 1.  Objections to Evidence Not Ruled On Are Preserved for Appeal  7.23A
      • 2.  Form: Declaration in Support of Motion for Summary Judgment (Book Account)  7.24
      • 3.  Form: Declaration of Assignee in Support of Motion for Summary Judgment (Book Account)  7.25
  • V.  JUDGMENT AFTER TRIAL
    • A.  Trial by Court or Jury  7.26
    • B.  Statement of Decision  7.27
    • C.  Drafting Judgment
      • 1.  In General  7.28
      • 2.  Form: Judgment Pursuant to Stipulation (In Open Court)  7.29
      • 3.  Form: Judgment After Trial by Court  7.30
      • 4.  Form: Judgment (Judicial Council Form JUD-100)  7.30A
    • D.  Costs
      • 1.  Statutory Authority  7.31
      • 2.  Selective Cost Provisions
        • a.  Effect of CCP §998 Offer  7.32
        • b.  Tender and Deposit by Debtor  7.33
        • c.  Transfer of Action  7.34
        • d.  Attachment Costs  7.35
        • e.  Bond Premiums  7.36
      • 3.  Procedure for Recovery  7.37
    • E.  Attorney Fees
      • 1.  Procedure  7.38
      • 2.  Effect of Contract Provision  7.39
      • 3.  Actions Based on Book Account  7.40
    • F.  Interest  7.41
  • VI.  VACATING JUDGMENT  7.42
  • VII.  APPEAL  7.43
  • VIII.  STEPS TO ENFORCE JUDGMENT
    • A.  Entry of Judgment
      • 1.  In General  7.44
      • 2.  Judgments Based on Sister-State Judgments  7.45
        • a.  Form: Application for Entry of Judgment on Sister-State Judgment (Judicial Council Form EJ-105)  7.46
        • b.  Form: Notice of Entry of Judgment on Sister-State Judgment (Judicial Council Form EJ-110)  7.47
      • 3.  Judgments Based on Foreign Money Judgments  7.47A
    • B.  Period of Judgment’s Enforceability  7.48
    • C.  Enforcement by Assignee of Judgment  7.49
    • D.  Perfecting Judgment Lien
      • 1.  Judgment Lien on Real Property
        • a.  Lump Sum or Installment Judgment  7.50
        • b.  Form: Abstract of Judgment—Civil and Small Claims (Judicial Council Form EJ-001)  7.51
      • 2.  Judgment Lien on Personal Property  7.52
      • 3.  Perfecting Lien Involving Federal Judgment  7.53
      • 4.  Release or Subordination of Judgment Liens Concerning Real Property
        • a.  In General  7.54
        • b.  Form: Subordination Agreement  7.55
        • c.  Form: Letter of Demand to Escrow Company  7.56
        • d.  Form: Release of Judgment Lien  7.57
      • 5.  Enforcing United States Money Judgments in Foreign Jurisdictions  7.57A
  • IX.  JOINT DEBTOR PROCEEDINGS
    • A.  Statutory Authority  7.58
    • B.  Procedure
      • 1.  Instituting Proceedings  7.59
      • 2.  Defendant’s Answer  7.60
      • 3.  Form: Judgment by Default by Court in Joint Debtor Proceeding  7.61
      • 4.  Trial and Limit of Recovery  7.62
      • 5.  Contribution and Repayment  7.63
      • 6.  Satisfaction by One Joint Debtor  7.64
  • X.  RENEWAL OF JUDGMENT
    • A.  Extends Period of Enforceability  7.65
    • B.  Procedure
      • 1.  Filing Application  7.66
      • 2.  Time Limitations  7.67
      • 3.  Form: Application for and Renewal of Judgment (Judicial Council Form EJ-190)  7.68
      • 4.  Service of Notice of Renewal of Judgment  7.69
      • 5.  Form: Notice of Renewal of Judgment (Judicial Council Form EJ-195)  7.70
    • C.  Vacating Renewal  7.71
    • D.  Effect on Judgment Lien and Other Liens  7.72
    • E.  Continuation of Enforcement Proceedings  7.73
  • XI.  SATISFACTION OF JUDGMENT
    • A.  Filing Acknowledgment of Satisfaction  7.74
    • B.  Motion to Compel Filing of Acknowledgment  7.75
    • C.  Form: Acknowledgment of Satisfaction of Judgment (Judicial Council Form EJ-100)  7.76
    • D.  Small Claims Actions  7.77
    • E.  Vacating Satisfaction  7.78
  • XII.  SMALL CLAIMS PROCEEDINGS
    • A.  Nature of Small Claims Proceedings  7.79
    • B.  Jurisdiction and Dollar Limits in Small Claims Court  7.80
    • C.  No Attorney Representation; Type of Assistance Permitted  7.81
    • D.  Who May File Claim  7.82
    • E.  Venue for Small Claims Actions  7.83
    • F.  Procedure for Filing Claim; Fees; Service of Process  7.84
    • G.  Legal Names of Plaintiff and Defendant  7.85
    • H.  Cross-Claims  7.86
    • I.  Trial of Small Claims Case  7.87
    • J.  Appeal of Small Claims Case  7.88
    • K.  Motions to Vacate  7.89
    • L.  Enforcing Judgment  7.90
      • 1.  When Debtor Wishes to Pay Judgment  7.91
      • 2.  Options When Debtor Does Not Pay Judgment Immediately  7.92

8

The Debtor’s Property

Raymond R. Goldstein

  • I.  IMPORTANCE OF PROPERTY  8.1
  • II.  PROPERTY LOCATION
    • A.  In California
      • 1.  What County  8.2
      • 2.  Private Place or Other Specific Location  8.3
    • B.  Outside of California  8.4
  • III.  TITLE TO PROPERTY  8.5
  • IV.  TRANSFERRED PROPERTY
    • A.  For Value  8.6
    • B.  For Inadequate Value: Presumption of Fraudulent Transfer  8.7
    • C.  Good Faith Defense to Fraudulent Transfer Action  8.7A
  • V.  SOURCES OF INFORMATION ON LOCATING ASSETS
    • A.  Legal and Ethical Considerations  8.7B
    • B.  Judgment Debtor  8.8
    • C.  Judgment Creditor  8.9
    • D.  Debtor’s Acquaintances  8.10
    • E.  Public Records  8.11
    • F.  Asset Location Services  8.12
  • VI.  LEGAL PROCEEDINGS FOR LOCATING ASSETS  8.12A
    • A.  Written Discovery
      • 1.  Scope  8.13
      • 2.  Timing  8.13A
      • 3.  Service Requirements  8.13B
      • 4.  Types of Written Discovery
        • a.  Written Interrogatories  8.13C
        • b.  Inspection Demands  8.13D
      • 5.  Responses to Written Discovery  8.13E
      • 6.  Enforcement for Noncompliance  8.13F
    • B.  Service of Papers After Judgment [Deleted]  8.13G
    • C.  Written Interrogatories [Deleted]  8.14
    • D.  Oral Discovery/Order for Examination  8.14A
      • 1.  Initiating Proceeding Against Judgment Debtor
        • a.  Procedure; Timing  8.15
        • b.  Proper Court for Examination  8.16
        • c.  Service of Order; Lien  8.17
        • d.  Form: Application and Order for Appearance and Examination (Judicial Council Form AT-138, EJ-125)  8.18
        • e.  Form: Declaration in Support of Motion for Examination (More Often Than Every 120 Days)  8.19
      • 2.  Initiating Proceeding Against Third Person
        • a.  When Available; Procedure  8.20
        • b.  Modifying Application and Order for Appearance and Examination (Judicial Council Form AT-138, EJ-125)  8.21
        • c.  Service of Order; Mileage Fee; Lien  8.22
        • d.  Form: Declaration in Support of Ex Parte Application for Order for Appearance of Third Person  8.23
        • e.  Form: Memorandum in Support of Ex Parte Application for Order for Appearance of Third Person  8.24
      • 3.  Appearance by Organization Served With Order to Appear for Examination  8.25
      • 4.  Limitations on Examinations
        • a.  120-Day Limit  8.26
        • b.  Protective Orders  8.27
        • c.  Asserting Judgment Debtor’s Exemption Claim When Third Person to Be Examined  8.28
        • d.  Intervention  8.29
      • 5.  Appointment and Authority of Referee  8.30
      • 6.  The Examination
        • a.  Preparation by Judgment Creditor’s Counsel  8.31
        • b.  Privileges and Scope of Examination  8.32
      • 7.  Counseling Debtor  8.33
      • 8.  When Use of Certified Shorthand Reporter May Be Warranted  8.34
    • E.  Questionnaire for Examination of Judgment Debtor
      • 1.  Use of Questionnaire  8.35
      • 2.  Questionnaire: Examination of Debtor  8.36
    • F.  Production of Documents  8.37
      • 1.  Form: Notice to Attend and Produce Documents at Debtor’s Examination  8.38
      • 2.  Form: Documents to Be Produced at Examination  8.39
      • 3.  Form: Civil Subpoena for Personal Appearance at Trial or Hearing (Judicial Council Form SUBP-001)  8.40
      • 4.  Form: Declaration Supporting Subpoena Duces Tecum  8.41
    • G.  Objections to Conducting Examination  8.42
    • H.  Order Applying Property on Debt Toward Satisfaction of Judgment; Lien
      • 1.  In General  8.43
      • 2.  Form: Order to Deliver Specific Property  8.44
    • I.  Third Person Claims Interest in Property or Denies Debt
      • 1.  Determination by Court  8.45
      • 2.  Order Forbidding Transfer of Property or Payment of Debt; Procedure  8.46
      • 3.  Form: Order Forbidding Transfer of Property or Payment of Debt  8.47
    • J.  Failure to Appear
      • 1.  Subsequent Procedure; Attorney Fees  8.48
      • 2.  Contempt
        • a.  Procedure in General  8.49
        • b.  Defenses  8.50
        • c.  Form: Order to Show Cause in re Contempt  8.51
        • d.  Form: Declaration in re Contempt for Failure to Appear  8.52
        • e.  Form: Declaration of Service  8.53

9

Writ Enforcement; Exemptions; Homesteads

Raymond R. Goldstein

  • I.  SCOPE  9.1
  • II.  EXECUTION
    • A.  Statutory Authority  9.2
    • B.  Writ of Execution
      • 1.  Issuance; Limitation  9.3
      • 2.  Content  9.4
      • 3.  Affidavit of Identity (CCP §680.135)  9.4A
      • 4.  Form: Sample Affidavit of Identity (CCP §680.135)  9.4B
      • 5.  Form: Writ of Execution (Judicial Council Form EJ-130)  9.5
    • C.  Executing Writ
      • 1.  Delivery to Levying Officer With Written Instructions  9.6
      • 2.  Form: Judgment Creditor’s Instructions to Levying Officer  9.7
      • 3.  Time Limitation for Levy  9.8
      • 4.  Notice of Levy; Exemption List  9.9
      • 5.  Form: Notice of Levy (Judicial Council Form EJ-150)  9.10
    • D.  Execution Lien  9.11
    • E.  What Property May Be Levied On
      • 1.  Overview  9.12
      • 2.  By Levying Officer  9.13
      • 3.  By Registered Process Server; Special Requirements  9.14
      • 4.  Specific Types of Property Not Subject to Levy  9.15
      • 5.  Exemptions  9.16
    • F.  General Execution Procedures
      • 1.  Property Levied on in Private Place; Application for Order to Seize Property  9.17
      • 2.  Application for Turnover Order  9.18
      • 3.  Release of Custody of Property; Extinguishment of Lien  9.19
      • 4.  Appointment of Receiver; Sale of Perishable Property  9.20
    • G.  Levy on Particular Types of Personal Property
      • 1.  In General; When No Method Specified by Statute  9.21
      • 2.  Going Business; Keepers  9.22
      • 3.  Vehicles, Manufactured Homes, Mobilehomes, and Boats  9.23
      • 4.  Personal Property Used as a Dwelling  9.24
      • 5.  Chattel Paper and Instruments  9.25
      • 6.  Deposit Accounts: Central Location for Levy  9.25A
        • a.  Procedure for Designating Central Location  9.25B
        • b.  Request for Account Location From Financial Institution With Fewer Than Ten California Branches That Has Not Designated Central Location  9.25C
      • 7.  Deposit Accounts and Safe Deposit Boxes Not Exclusively in Judgment Debtor’s Name  9.26
      • 8.  Form: Affidavit That Individual Named on Account Is Spouse of Judgment Debtor (CCP §700.160(b)(2))  9.26A
      • 9.  Form: Affidavit in Support of Execution Against Account Standing in Fictitious Business Name of Debtor (CCP §700.160(b)(3))  9.26B
      • 10.  Final Money Judgment  9.27
      • 11.  Interest in Personal Property in Decedent’s Estate  9.28
      • 12.  Lottery Prizes  9.29
      • 13.  Trusts  9.30
      • 14.  Domain Names  9.30A
    • H.  Third Person’s (Garnishee’s) Duties and Liabilities After Levy
      • 1.  In General  9.31
      • 2.  Levies on Banks  9.32
      • 3.  Garnishee’s Response
        • a.  When Required; Content; Time Limitation; Liability  9.33
        • b.  Form: Memorandum of Garnishee (Judicial Council Form AT-167/EJ-152)  9.34
      • 4.  Secured Party  9.35
    • I.  Sale of Personal Property  9.36
    • J.  Levy on Real Property; Sale
      • 1.  Method of Levy  9.37
      • 2.  Execution Sale of Real and Personal Property
        • a.  Statutory Authority; Notice of Sale; Timing  9.38
        • b.  Sale; Extinction of Liens  9.39
        • c.  No Right to Redemption; Exceptions  9.40
    • K.  Return of Writ of Execution; Time Limitations  9.41
    • L.  Debtor’s Remedies Against Enforcement
      • 1.  Claim of Exemption  9.42
      • 2.  Stay of Enforcement
        • a.  Statutory Authority  9.43
        • b.  Extinguishment of Enforcement Liens; Exceptions  9.44
        • c.  Form: Ex Parte Order Staying Enforcement of Judgment  9.45
      • 3.  Recalling and Quashing Writ of Execution
        • a.  When Motion Available  9.46
        • b.  Form: Order Recalling and Quashing Writ of Execution  9.47
      • 4.  Remedies After Execution Sale
        • a.  Restitution After Reversal of Judgment  9.48
        • b.  Setting Aside Improper Execution Sale; Damages  9.49
    • M.  THIRD PARTY CLAIMS
      • 1.  In General  9.49A
      • 2.  Third Party Claim of Ownership or Possession  9.49B
      • 3.  Third Party Claim of Security Interest or Lien  9.49C
      • 4.  Hearing on Third Party Claim  9.49D
      • 5.  Creditor’s Demand for Third Party Claim by Secured Party or Lienholder  9.49E
      • 6.  Third Party Undertaking to Release Property  9.49F
      • 7.  Undertakings  9.49G
  • III.  EXEMPTIONS FROM LEVY OF EXECUTION
    • A.  General Principles  9.50
      • 1.  Dates for Determining Exemptions and Procedures  9.51
      • 2.  Construing Exemption Provisions; Public Policy Considerations  9.52
      • 3.  Foreclosures; Consensual Liens  9.53
      • 4.  Property Not Subject to Levy  9.54
    • B.  Form: Exemptions From the Enforcement of Judgments (Judicial Council Form EJ-155)  9.55
    • C.  Form: Current Dollar Amounts of Exemptions From Enforcement of Judgments (Judicial Council Form EJ-156)  9.55A
    • D.  Procedure
      • 1.  Time to File; Waiver  9.56
      • 2.  Who May File  9.57
      • 3.  How to File  9.58
      • 4.  Form of Claim and Financial Statement  9.59
        • a.  Form: Claim of Exemption (Enforcement of Judgment) (Judicial Council Form EJ-160)  9.60
        • b.  Form: Financial Statement (Judicial Council Form WG-007/EJ-165)  9.61
      • 5.  Levying Officer’s Responsibilities; Notice to Creditor  9.62
      • 6.  Opposition to Exemption Claim  9.63
        • a.  Form: Notice of Opposition to Claim of Exemption (Judicial Council Form EJ-170)  9.64
        • b.  Form: Notice of Hearing on Claim of Exemption (Judicial Council Form WG-010/EJ-175)  9.65
      • 7.  Hearing; Orders  9.66
      • 8.  Appeal  9.67
    • E.  Particular Property and Situations
      • 1.  Motor Vehicles and Mobilehomes  9.68
      • 2.  Tools; Property Used to Earn Livelihood  9.69
      • 3.  Paid Earnings  9.69A
      • 4.  Deposit Accounts and Social Security and Public Benefits Deposits  9.69B
      • 5.  Private Retirement Plans  9.69C
      • 6.  Jointly Owned Property
        • a.  Joint or Common Tenancy  9.70
        • b.  Community Property  9.71
        • c.  Partnership Property  9.72
        • d.  Tracing Exempt Funds  9.73
      • 7.  Judgment for Child or Spousal Support  9.74
    • F.  Bankruptcy
      • 1.  General Procedure  9.75
      • 2.  Electing Alternative State Exemptions  9.76
      • 3.  Retirement Plans  9.77
      • 4.  Converting Nonexempt to Exempt Property  9.78
      • 5.  Exemption of Fraudulently Transferred Property  9.79
      • 6.  Liens Against Exempt Property  9.80
    • G.  Exemptions in Federal Statutes  9.81
  • IV.  HOMESTEADS
    • A.  General Principles  9.82
    • B.  Declared Homestead
      • 1.  Definition  9.83
      • 2.  Immunity From Levy; Selection and Valuation  9.84
      • 3.  Form: Declaration of Homestead  9.85
      • 4.  Abandonment of Homestead  9.86
    • C.  Married Person’s Separate Homestead  9.87
    • D.  Sale Procedure for Homesteaded Property
      • 1.  Notice of Levy and Application for Order for Sale  9.88
      • 2.  Form: Order to Show Cause Why Order for Sale of Dwelling Should Not Issue  9.89
      • 3.  Form: Application for Order for Sale of Dwelling  9.90
      • 4.  Notice of Hearing  9.91
      • 5.  Form: Notice of Hearing on Right to Homestead Exemption (Judicial Council Form EJ-180)  9.92
      • 6.  Hearing  9.93
      • 7.  Right to Rehearing After Nonappearance  9.94
      • 8.  Form: Declaration for Rehearing on Homestead Exemption (Judicial Council Form EJ-182)  9.95

10

Wage Garnishment

Raymond R. Goldstein

  • I.  WAGE GARNISHMENT
    • A.  Statutory Authority; Definitions  10.1
    • B.  Earnings Withholding Orders
      • 1.  Procedure
        • a.  Obtaining Earnings Withholding Order
          • (1)  Judgment Creditor’s Application  10.2
          • (2)  Form: Application for Earnings Withholding Order (Judicial Council Form WG-001)  10.3
        • b.  Manner of Levy; Papers Served on Employer  10.4
          • (1)  Form: Earnings Withholding Order (With Employer’s Instructions) (Judicial Council Form WG-002)  10.5
          • (2)  Form: Earnings Withholding Order for Support (With Employer’s Instructions) (Judicial Council Form WG-004)  10.6
          • (3)  Form: Employer’s Return (Judicial Council Form WG-005)  10.7
          • (4)  Form: Employee Instructions (Judicial Council Form WG-003)  10.8
      • 2.  Lien Created by Service of Earnings Withholding Order  10.9
      • 3.  Employer’s Duties After Being Served With Earnings Withholding Order
        • a.  Notification to Employee; Employer’s Return; Time Limitations  10.10
        • b.  Duration of Withholding Period; Payment to Levying Officer  10.11
        • c.  Priority
          • (1)  When Multiple Earnings Withholding Orders Served  10.12
          • (2)  Earnings Assignment Order for Support  10.13
          • (3)  Earnings Withholding Order for Support  10.14
      • 4.  Judgment Creditor’s Duty When Judgment Satisfied Before Earnings Withholding Order Terminates
        • a.  Notice of Termination  10.15
        • b.  Form: Notice of Termination or Modification of Earnings Withholding Order (Judicial Council Form WG-012)  10.16
      • 5.  Additional Earnings Withholding Order for Recovery of Cost and Interest  10.17
    • C.  Earnings Withholding Order for Taxes  10.18
  • II.  EXEMPTION FROM WAGE GARNISHMENT
    • A.  General State and Federal Provisions  10.19
      • 1.  Disposable Earnings; Self-Employment Earnings  10.20
      • 2.  Computing Amount of Exempt Earnings  10.21
        • a.  “General” Earnings Withholding Order  10.22
        • b.  Earnings Withholding Order for Support  10.23
        • c.  Earnings Withholding Order for Taxes  10.24
      • 3.  Earnings Necessary to Support Debtor and Family  10.25
      • 4.  Common Necessaries of Life [Deleted]  10.26
    • B.  Procedure
      • 1.  Filing Claim  10.27
        • a.  Form: Claim of Exemption (Wage Garnishment) (Judicial Council Form WG-006)  10.28
        • b.  Form: Claim of Exemption and Financial Declaration (Wage Garnishment—State Tax Liability) (Judicial Council Form WG-026)  10.29
      • 2.  Opposing Claim  10.30
        • a.  Form: Notice of Filing of Claim of Exemption (Judicial Council Form WG-008)  10.31
        • b.  Form: Notice of Opposition to Claim of Exemption (Wage Garnishment) (Judicial Council Form WG-009)  10.32
      • 3.  Hearing; Orders  10.33
      • 4.  Form: Order Determining Claim of Exemption (Judicial Council Form WG-011)  10.34

11

Miscellaneous Remedies

Raymond R. Goldstein

  • I.  CREDITORS’ SUITS
    • A.  Nature of Proceedings  11.1
    • B.  Statute of Limitations  11.2
    • C.  Joinder of Judgment Debtor; Venue; Lien  11.3
    • D.  Restraining Order; Preliminary Injunction  11.4
    • E.  Judgment Debtor’s Claim of Exemption  11.5
    • F.  Judgment in Creditor’s Suit; Costs  11.6
  • II.  CHARGING ORDERS
    • A.  When Available; Procedure; Lien  11.7
    • B.  Form: Notice of Motion for Order to Charge Partner’s Interest and Appoint Receiver  11.8
    • C.  Form: Declaration in Support of Motion for Order to Charge Partner’s Interest and Appoint Receiver  11.9
    • D.  Form: Memorandum in Support of Motion for Order to Charge Partner’s Interest and Appoint Receiver  11.9A
    • E.  Form: Order to Charge Partner’s Interest and Appoint Receiver  11.10
    • F.  Foreclosure of Lien; Redemption Rights  11.11
  • III.  LIEN IN PENDING ACTION OR PROCEEDING
    • A.  In General  11.12
    • B.  Obtaining Lien; Notice of Lien  11.13
      • 1.  Form: Notice of Lien (Judicial Council Form AT-180, EJ-185)  11.14
      • 2.  Form: Statement of Filing of Notice of Lien  11.15
    • C.  Judgment Creditor’s Intervention in Pending Action or Proceeding  11.16
    • D.  Compromise, Dismissal, Settlement, or Satisfaction of Action, Proceeding, or Judgment  11.17
    • E.  Claim of Exemption by Judgment Debtor  11.18
    • F.  Enforcement of Lien
      • 1.  Under Court Order  11.19
      • 2.  After Final Judgment  11.20
  • IV.  ASSIGNMENT ORDERS
    • A.  When Available  11.21
    • B.  Variations in Order Types  11.21A
    • C.  Limitations on Use  11.22
    • D.  Procedure  11.23
      • 1.  Form: Notice of Motion for Assignment Order  11.24
      • 2.  Form: Declaration in Support of Motion for Assignment Order  11.25
      • 3.  Form: Memorandum in Support of Motion for Assignment Order  11.25A
      • 4.  Form: Assignment Order  11.26
    • E.  Priority of Assignments  11.27
    • F.  Restraining Orders  11.28
    • G.  Obligor’s Rights
      • 1.  In General  11.29
      • 2.  Form: Notice of Assignment Order  11.30
    • H.  Claim of Exemption by Judgment Debtor; Procedure  11.31
    • I.  Modifying or Setting Aside Assignment Order; Procedure  11.32
  • V.  RECEIVER TO ENFORCE JUDGMENT
    • A.  When Available; Required Showing  11.33
    • B.  Special Rule on Alcoholic Beverage Licenses  11.34
  • VI.  COLLECTING FROM LOCAL PUBLIC ENTITIES  11.35
  • VII.  ENFORCEMENT OF JUDGMENT WHEN JUDGMENT DEBTOR IS CREDITOR OF PUBLIC ENTITY
    • A.  Exclusive Statutory Procedure  11.36
    • B.  Filing Requirements; Lien  11.37
    • C.  Discharge of Claim; Deposit With Court; Notice of Deposit  11.38
    • D.  Deposit With Court When Judgment Debtor Is a Contractor on Public Works  11.39
    • E.  Exemption Claim by Judgment Debtor  11.40
    • F.  Payment by Court  11.41
  • VIII.  OTHER ENFORCEMENT PROCEDURES
    • A.  Against Franchise Granted by Public Entity  11.42
    • B.  Against Judgment Debtor’s Interest as Beneficiary of Trust  11.43
    • C.  Against Judgment Debtor’s Contingent Remainder, Executory Interest, or Other Nonvested Property Interest  11.44
    • D.  Against Judgment Debtor’s Property in Guardian or Conservatorship Estate  11.45
  • IX.  ENFORCEMENT AFTER DEATH OF JUDGMENT CREDITOR OR JUDGMENT DEBTOR  11.46
  • X.  ENFORCEMENT COSTS  11.47
    • A.  Specific Costs Allowable Under CCP §685.070  11.48
    • B.  Procedure
      • 1.  Memorandum of Costs; Time Limitation  11.49
      • 2.  Motion to Tax Costs; Time Limitations  11.50
      • 3.  Motion to Recover Costs
        • a.  Procedure; Time Limitations  11.51
        • b.  Form: Notice of Motion for Order Fixing Costs of Enforcement of Judgment  11.52
        • c.  Form: Declaration in Support of Motion for Order Fixing Costs of Enforcement of Judgment  11.53
        • d.  Form: Order Fixing Costs of Enforcement of Money Judgment  11.54
      • 4.  Adding Recovered Costs to Principal Amount of Judgment Remaining Unsatisfied  11.55
      • 5.  Outstanding Writs and Earnings Withholding Orders  11.56
  • XI.  CONTEMPT  11.57
    • A.  Types of Contempt  11.58
      • 1.  Direct Contempt  11.59
      • 2.  Indirect Contempt  11.60
    • B.  Pleading Contempt
      • 1.  Initiating Contempt Proceeding  11.61
      • 2.  Service of Contempt Papers  11.62
      • 3.  Prima Facie Case  11.63
        • a.  Valid Court Order  11.64
        • b.  Knowledge of Order  11.65
        • c.  Ability to Comply  11.66
          • (1)  Support Orders  11.67
          • (2)  Willful Disobedience of Order  11.68
      • 4.  Burden of Proof
        • a.  Federal Law  11.69
          • (1)  Criminal Contempt  11.70
          • (2)  Civil Contempt  11.71
        • b.  California Law  11.72
    • C.  Hearing and Arraignment  11.73
    • D.  Due Process Considerations
      • 1.  Federal Law
        • a.  Criminal Contempt Proceedings  11.74
        • b.  Civil Contempt Proceedings  11.75
      • 2.  California Law  11.76
        • a.  Right to Trial by Jury Not Absolute  11.77
        • b.  Right to Trial by Jury When Movant Seeks to Compel Compliance by Imprisonment  11.78
        • c.  Right to Counsel  11.79
    • E.  Trial  11.80
      • 1.  Entering Documents Into Evidence  11.81
      • 2.  Testimony
        • a.  All Testimony Is Live  11.82
        • b.  Fifth Amendment Considerations  11.83
      • 3.  Penalties  11.84
    • F.  Appellate Review  11.85

12

Bankruptcy Considerations: Representing Debtors and Creditors in Bankruptcy

Richard K. Diamond

Donald W. Fitzgerald

Iain A. Macdonald

Margaret M. Mann

Victor A. Vilaplana

Riley C. Walter

  • I.  INTRODUCTION  12.1
  • II.  SOURCES OF BANKRUPTCY LAW AND PROCEDURE
    • A.  The Bankruptcy Code  12.2
    • B.  Bankruptcy Terminology  12.3
    • C.  Federal Rules of Bankruptcy Procedure  12.4
      • 1.  When Code Specifies Relief May Be Granted Only After Notice and a Hearing  12.5
      • 2.  Adversary Proceedings  12.6
      • 3.  Contested Matters  12.7
      • 4.  Rule 2004 Exam  12.8
      • 5.  Time Periods, Deadlines  12.9
      • 6.  Official Forms and Websites for Federal Bankruptcy Courts  12.10
    • D.  Case Management/Electronic Case Filing System  12.11
    • E.  Bankruptcy Courts and Jurisdiction
      • 1.  Original Jurisdiction  12.12
      • 2.  States’ Waiver of Sovereign Immunity  12.13
        • a.  Arm of State Determination  12.14
        • b.  Same Transaction or Occurrence Requirement  12.15
    • F.  Removal and Remand  12.16
    • G.  Appeals  12.17
    • H.  Local Rules  12.18
    • I.  Additional Sources  12.19
  • III.  REPRESENTING DEBTORS IN BANKRUPTCY CASES
    • A.  Whether to File for Bankruptcy Relief  12.20
      • 1.  Checklist: Should Client File a Bankruptcy Case?  12.21
      • 2.  When to File Bankruptcy Case  12.22
      • 3.  Selecting Proper Chapter; Consumer Debt  12.23
        • a.  Liquidation—Chapter 7 and the Means Test  12.24
          • (1)  Presumption of Abuse  12.25
          • (2)  Income and Expense Calculations  12.26
          • (3)  Secured and Priority Claims  12.27
          • (4)  Other Basis for Dismissal  12.28
        • b.  Adjustment of Debts of an Individual With Regular Income—Chapter 13  12.29
          • (1)  Provisions for Unsecured and Secured Creditors; Cramdown  12.30
          • (2)  Advantages of Filing Under Chapter 13  12.31
          • (3)  Good Faith of Chapter 13 Filing  12.32
          • (4)  Discharge Under Chapter 13  12.33
          • (5)  Confirmation, Modification, and Dismissal or Conversion  12.34
        • c.  Reorganization—Chapter 11  12.35
    • B.  Accuracy of Schedules  12.36
    • C.  Bankruptcy Estate and Debtor’s Exemption Rights  12.37
      • 1.  Election of California or “Cal-Fed” Exemptions  12.38
      • 2.  Converting Nonexempt Property to Exempt  12.39
    • D.  Meeting of Creditors  12.40
    • E.  Reaffirmation  12.41
    • F.  Denial of Discharge  12.42
    • G.  Married Debtors and the Joint Petition  12.43
    • H.  Relief Available to Debtors
      • 1.  Automatic Stay  12.44
        • a.  Exceptions to Automatic Stay  12.45
        • b.  Duration of Automatic Stay  12.46
        • c.  Enforcement of Automatic Stay  12.47
        • d.  Protection of Secured Creditor During Stay  12.48
        • e.  Effect on Actions Against Third Parties  12.49
        • f.  Damages for Violation of Stay  12.50
      • 2.  Effect of Discharge on Collection of Judgments  12.51
      • 3.  Nondischargeable Debts  12.52
        • a.  Taxes  12.53
        • b.  Fraud and False Financial Statement
          • (1)  Elements of Actual Fraud  12.54
          • (2)  Credit Card Fraud  12.55
          • (3)  Scope of Fraud Exception to Dischargeability  12.56
          • (4)  Imputation of Fraud  12.57
          • (5)  Creditor Recovery of Attorney Fees in Litigating Fraud Exception  12.58
          • (6)  Prepetition Fraud  12.59
        • c.  Unscheduled Creditors  12.60
        • d.  Fiduciary Misconduct  12.61
        • e.  Debts for Support or Arising From Divorce or Separation  12.62
        • f.  Willful and Malicious Conduct  12.63
        • g.  Student Loans  12.64
      • 4.  Abandonment of Property of the Estate
        • a.  Technical Abandonment on Closing of Case  12.65
        • b.  Abandonment During the Case  12.66
    • I.  Revocation of Discharge  12.67
  • IV.  FORMS FOR REPRESENTING DEBTORS IN BANKRUPTCY CASES
    • A.  Engagement Letter for Chapter 7 Debtor With Required Notices And Disclosures
      • 1.  Notice and Disclosure Requirements  12.68
        • a.  Notice Under 11 USC §342(b)  12.69
        • b.  Notice Under 11 USC §527(a)(2)  12.70
        • c.  Statement Under 11 USC §527(b)  12.71
        • d.  Statement of Information Under 11 USC §527(c)  12.72
      • 2.  Engagement Letter and Exhibits
        • a.  Form: Engagement Letter for Representation of Chapter 7 Debtor  12.73
        • b.  Form: Exhibit A to Engagement Letter: Notice Required by 11 USC §342(b) for Individuals Filing for Bankruptcy (Form 2010)  12.74
        • c.  Form: Exhibit B to Engagement Letter: Disclosure Under 11 USC §527(a)(2)  12.75
        • d.  Form: Exhibit C to Engagement Letter: Statement Under 11 USC §527(b)  12.76
        • e.  Form: Exhibit D to Engagement Letter: Disclosure Under 11 USC §527(c)  12.77
    • B.  Form: Reaffirmation Agreement Cover Sheet (Official Form 427)  12.78
    • C.  Form: Reaffirmation Document (Form B240A)  12.79
    • D.  Form: Letter to Creditor Regarding Violation of Automatic Stay  12.80
  • V.  REPRESENTING UNSECURED CREDITORS IN BANKRUPTCY CASES
    • A.  Offensive Tactics
      • 1.  Creditor’s Choices  12.81
      • 2.  Complaint to Determine Dischargeability and Objection to Discharge  12.82
        • a.  Complaint to Determine Dischargeability  12.83
        • b.  Objection to Discharge  12.84
      • 3.  Involuntary Bankruptcy
        • a.  Filing Requirements  12.85
        • b.  Risks of Filing Involuntary Bankruptcy  12.86
      • 4.  Creditors’ Committees  12.87
      • 5.  Reclamation  12.88
      • 6.  Proofs of Claim
        • a.  Filing Procedures; Deadlines  12.89
        • b.  Informal Proofs of Claim  12.90
        • c.  When Claim Is Deemed Allowed  12.91
      • 7.  Trustees and Examiners  12.92
      • 8.  Setoff  12.93
      • 9.  Subordination of Claims  12.94
      • 10.  Other Offensive Tactics  12.95
    • B.  Defensive Tactics
      • 1.  Relief From Stay
        • a.  Notice and Hearing  12.96
        • b.  Relief Without Hearing  12.97
        • c.  Codebtor in Chapter 13 Cases  12.98
      • 2.  Executory Contracts and Unexpired Leases
        • a.  Definition of Executory Contract; Treatment Under Various Bankruptcy Chapters  12.99
        • b.  Assuming Lease of Nonresidential Real Property  12.100
        • c.  Assuming Lease on Personal Property  12.101
        • d.  Rejection of Executory Contract  12.102
        • e.  Prohibitions on Assignment of Executory Contract or Unexpired Lease  12.103
      • 3.  Plan of Reorganization  12.104
      • 4.  Trustee’s and Debtor’s Avoiding Powers  12.105
        • a.  Preferences  12.106
          • (1)  Payments on Fully Secured Debt  12.107
          • (2)  Perfection of Security Interest  12.108
          • (3)  Transfer in Ordinary Course of Business  12.109
          • (4)  New-Value Offsets  12.110
          • (5)  Domestic Support Obligations  12.111
          • (6)  Dollar Limitations  12.112
          • (7)  Alternative Repayment Program Payments  12.113
        • b.  Fraudulent or Voidable Transfers
          • (1)  Under Federal Law  12.114
          • (2)  Under California Law  12.115
        • c.  Statutory Liens  12.116
        • d.  Trustee as Creditor or Purchaser Under State Law  12.117
      • 5.  Liens That Impair Exemptions  12.118
  • VI.  FORMS FOR REPRESENTING UNSECURED CREDITORS IN BANKRUPTCY CASES
    • A.  Form: Notice of Motion and Motion for Examination and Production of Documents Under Fed R Bankr P 2004  12.119
    • B.  Form: Order on Motion for Examination and Production of Documents Under Fed R Bankr P 2004  12.120
    • C.  Form: Subpoena for Rule 2004 Examination (Official Form B2540)   12.121

13

Debt Collection and Family Law

Raymond R. Goldstein

  • I.  INTRODUCTION  13.1
  • II.  NATURE OF COMMUNITY ESTATE
    • A.  Definitions
      • 1.  Community Property  13.2
      • 2.  Quasi-Community Property  13.3
      • 3.  Separate Property  13.4
    • B.  Management of Community Property  13.5
    • C.  Presumptions
      • 1.  General Community Property Presumption  13.6
      • 2.  Title Presumption  13.7
      • 3.  Multiple-Party-Accounts Presumption  13.8
    • D.  Transmutation
      • 1.  Definition  13.9
      • 2.  Writing Requirement  13.10
      • 3.  Effect of Fraudulent Transfer Rules  13.11
      • 4.  Effect of Title Presumption  13.12
      • 5.  Purchase of Separate Property With Community Property Funds  13.13
    • E.  Tracing and Commingling
      • 1.  Use in Overcoming Community Property Presumption  13.14
      • 2.  Community Payments on Separate Property  13.15
      • 3.  Community Investment in Separate Business  13.16
    • F.  Credit Acquisitions  13.17
  • III.  LIABILITY OF COMMUNITY ESTATE FOR DEBT
    • A.  Before or During Marriage  13.18
    • B.  When Marriage Dissolved  13.19
    • C.  Naming Nondebtor Spouse in Enforcement Proceedings  13.20
    • D.  Exceptions to Liability of Community Property
      • 1.  Segregated Earnings of Nondebtor Spouse  13.21
      • 2.  Debts Assigned for Payment  13.22
  • IV.  ENFORCEMENT CONSIDERATIONS
    • A.  Enforcing Judgments Against Community Property  13.23
      • 1.  Form: Notice of Motion for Earnings Withholding Order  13.23A
      • 2.  Form: Declaration in Support of Motion for Earnings Withholding Order  13.23B
      • 3.  Form: Memorandum in Support of Motion for Earnings Withholding Order  13.23C
      • 4.  Form: Earnings Withholding Order  13.23D
    • B.  Problem of Nondebtor Spouse Assuming Debt  13.24
    • C.  Enforcement Methods
      • 1.  Debtor’s Examination
        • a.  Examination of Judgment Debtor  13.25
        • b.  Examination of Third Person  13.26
      • 2.  Liens
        • a.  Lien in Pending Action  13.27
        • b.  Judgment Lien on Real Property  13.28
        • c.  Judgment Lien on Personal Property  13.29
  • V.  FRAUDULENT TRANSFERS
    • A.  Prenuptial Agreements  13.30
    • B.  Agreements Between Spouses  13.31
    • C.  Marital Settlement Agreements  13.32
  • VI.  ENFORCEMENT OF SUPPORT JUDGMENTS  13.33
    • A.  Support Judgments Distinguished From Money Judgments  13.34
    • B.  Private Child Support Collectors  13.34A
    • C.  Department of Child Support Services  13.34B
      • 1.  Special DCSS Remedies  13.34C
      • 2.  Independent Enforcement  13.34D
      • 3.  State Disbursement Unit  13.34E
    • D.  Methods of Enforcement of Support Judgments
      • 1.  Wage Assignment  13.35
      • 2.  Electronic Funds Transfer  13.36
      • 3.  Writ of Execution  13.37
      • 4.  Judgment Lien  13.38
      • 5.  Seek Work Orders  13.38A
      • 6.  Contempt Proceedings
        • a.  Civil or Criminal Contempt  13.39
        • b.  Limitations on Contempt Proceedings  13.39A
        • c.  Ability to Comply With Order  13.39B
        • d.  Remedies on Finding of Contempt  13.39C
        • e.  Responses to Contempt Charge  13.39D
      • 7.  Deposit of Assets to Secure Child Support  13.40
      • 8.  Deposit of Money to Secure Child Support  13.41
      • 9.  Collection From State or Local Public Entity Owing Money to Judgment Debtor  13.42
      • 10.  Examination of Support Obligor or Third Party  13.43
      • 11.  Qualified Domestic Relations Orders  13.43A
      • 12.  Appointment of Receiver  13.44
      • 13.  Charging Order Against Partnership  13.45
      • 14.  Assignment Order  13.46
      • 15.  Liability of Third Parties  13.46A
      • 16.  Uniform Interstate Family Support Act (UIFSA)  13.47
        • a.  Enforcing Support Order Issued Outside State  13.48
        • b.  Income Withholding Order as Remedy Without Registration of Support Order  13.49
  • VII.  LIABILITY ISSUES CONCERNING MARRIED SAME-SEX COUPLES AND CALIFORNIA REGISTERED DOMESTIC PARTNERS  13.50

14

Dealing With a Deceased Debtor

David D. Little

  • I.  OVERVIEW OF CLAIMS AGAINST A DECEDENT’S ESTATE  14.1
  • II.  EFFECT OF 1-YEAR STATUTE OF LIMITATIONS ON CLAIMS AGAINST A DECEASED DEBTOR
    • A.  CCP §366.2—Claims Against Decedents Must Be Brought No Later Than 1 Year After Death  14.2
      • 1.  No Tolling Except Under Certain Narrow Circumstances  14.3
      • 2.  Equitable Estoppel May Apply  14.4
    • B.  Potential Advantage for Debtors  14.5
      • 1.  Wait for 1 Year to Run Before Beginning Probate  14.6
      • 2.  Executor Risks Waiving Priority of Appointment  14.7
      • 3.  Court May Appoint Someone of Lower Priority  14.8
      • 4.  Another Party May Petition Court Ahead of Designated Executor  14.9
  • III.  DETERMINING WHETHER DEBTOR HAS DIED  14.10
    • A.  Warning Signs That a Debtor May Have Died  14.11
    • B.  Ways to Determine if Debtor Has Died  14.12
  • IV.  NOTICE TO CREDITORS IN PROBATE ADMINISTRATION  14.13
    • A.  When Probate Administration Already Exists  14.14
      • 1.  Receive Notice of Administration  14.15
      • 2.  File Claim
        • a.  Time for Filing Claim  14.16
        • b.  Who May File and How to File Claim  14.17
        • c.  Creditor Who Is a Personal Representative or Attorney of a Personal Representative  14.17A
        • d.  Late Claims  14.18
      • 3.  Allowance or Rejection of Claims by Personal Representative  14.19
    • B.  When No Probate Administration Already Exists  14.20
  • V.  NOTICE TO CREDITORS IN TRUST ADMINISTRATION  14.21
    • A.  Creditor Claim Procedure in Trusts  14.22
      • 1.  Filing Proposed Notice to Creditors  14.23
      • 2.  Publication of Notice  14.24
      • 3.  Actual Notice to Creditors  14.25
      • 4.  Time for Filing Claims  14.26
      • 5.  Filing of Claims by Creditor  14.27
      • 6.  Late Claims  14.28
      • 7.  Allowance or Rejection of Claims by Trustee  14.29
    • B.  Petition for Approval and Settlement of Claims  14.30
  • VI.  SUIT ON REJECTED CLAIM  14.31
    • A.  Suit on Rejected Claim in Probate Proceeding  14.32
    • B.  When Action on Debt Was Pending Against Debtor at Time of Death  14.33
    • C.  Suit on Rejected Claim in Trust Administration  14.34
  • VII.  RECOVERING FROM ASSETS HELD IN TRUST  14.35
  • VIII.  RECOVERING FROM ASSETS IN JOINT TENANCY
    • A.  Joint Tenancy Generally  14.36
    • B.  Timing of Recovery From Property Held in Joint Tenancy  14.37
  • IX.  WHEN DEBTOR DIES DURING LITIGATION  14.38
    • A.  File Creditor’s Claim Against Estate or Trust  14.39
    • B.  Within 30 Days of Rejection of Claim by Personal Representative, Substitute Personal Representative for Deceased Debtor  14.40
    • C.  Exception When Creditor Seeks Liability Covered by Insurance Policy  14.41

DEBT COLLECTION PRACTICE IN CALIFORNIA

(2d Edition)

December 2017

TABLE OF CONTENTS

 

File Name

Book Section

Title

CH01

Chapter 1

Representing the Creditor

01-008

§1.8

Checklist: Should Counsel Take Case?

01-028

§1.28

Memorandum to Support Staff re Fair Debt Collection Practices

01-043

§1.43

Contingent Fee Agreement With Noncontingent Retainer

01-044

§1.44

Hourly Fee Agreement

CH02

Chapter 2

The Fair Debt Collection Practices Acts

02-042

§2.42

30-Day Validation Notice

CH03

Chapter 3

Starting the Action

03-110

§3.110

Checklist: 28 Ways to Show Alter Ego

03-115

§§3.115–3.133

Caption and Introductory Language

 

§3.116

Identification of Plaintiff

 

§3.117

Identification of Defendant

 

§3.118

Venue

 

§3.119

Cause of Action for Breach of Written Contract

 

§3.120

Money Had and Received

 

§3.121

Goods Sold and Delivered at Agreed Price

 

§3.122

Reasonable Value of Goods Sold and Delivered

 

§3.123

Work, Labor, Services, and Materials

 

§3.124

Reasonable Value of Work, Labor, Services, and Materials

 

§3.125

Account Stated

 

§3.126

Book Account

 

§3.127

Statement of Amount Due—For Use With All Common
Counts

 

§3.128

Attorney Fees—For Use With All Common Counts

 

§3.129

Damages—For Use With All Common Counts

 

§3.130

Cause of Action Against Surety on Continuing Guaranty

 

§3.131

Cause of Action Against Defendants on Promissory Note

 

§3.132

Cause of Action on Not Sufficient Funds Check

 

§3.133

Prayer for Relief

CH04

Chapter 4

Representing the Debtor Before Judgment

04-002

§4.2

Checklist: Master Checklist for Analyzing Client’s Debt Problem and Handling Collection Action

04-009

§4.9

List of Documents to Bring to Interview

04-010

§§4.10–4.12

Instructions for Debtor’s Questionnaire

 

§4.11

Questionnaire

 

§4.12

Oath to Questionnaire

04-013

§4.13

Summary of Business Interests

04-014

§4.14

Budget Questionnaire

04-015

§4.15

Interview Questions on Specific Collection Action

04-061

§4.61

Demand for Bill of Particulars

04-062

§4.62

Bill of Particulars

04-063

§4.63

Notice of Motion for Order for Further Bill of Particulars

04-101

§4.101

Stipulation for Entry of Judgment

04-103

§§4.103–4.119

Heading and Recitals

 

§4.104

Effective Date

 

§4.105

Payments

 

§4.106

Stipulations

 

§4.107

Guaranties

 

§4.108

Representations and Warranties

 

§4.109

No Modification

 

§4.110

Events of Default

 

§4.111

Remedies

 

§4.112

Remedies Cumulative; No Waiver

 

§4.113

Waiver and Release

 

§4.114

Advice of Counsel

 

§4.115

No Admission of Liability

 

§4.116

Attorney Fees

 

§4.117

Confidentiality

 

§4.118

Miscellaneous Provisions

 

§4.119

Signature

04-121

§4.121

Confession of Judgment Statement

04-122

§4.122

Attorney’s Declaration in Support of Statement Confessing Judgment

04-123

§4.123

Judgment

04-127

§4.127

General Assignment

04-128

§4.128

Minutes of the Meeting

04-129

§4.129

Stockholders’ Consent to Assignment

CH04A

Chapter 4A

Representing the Debtor After Entry of Money
Judgment

04A-002

§4A.2

Checklist: Master Checklist for Analyzing Client’s Rights and Remedies After Entry of Judgment

04A-033

§4A.33

Notice of Motion to Set Aside Default and Default Judgment

04A-034

§4A.34

Declaration Supporting Motion to Set Aside Entry of Default and Default Judgment

04A-035

§4A.35

Order Staying Execution and Shortening Time

04A-036

§4A.36

Order Setting Aside Entry of Default and Default Judgment

04A-055

§4A.55

Identifying Debtor’s Exempt Property

CH05

Chapter 5

Discovery in Debt Collection Actions

05-014

§5.14

Request for Admission

05-021

§5.21

Specially Prepared Interrogatories

05-028

§5.28

Stipulation for Inspection, Copying, Testing, or Sampling

05-029

§5.29

Demand for Inspection, Copying, Testing, or Sampling

05-035

§5.35

Notice of Deposition (CCP §2025.220(a))

05-037

§5.37

Stipulation for Taking Deposition (CCP §2016.030)

05-039

§5.39

Notice of Privacy Rights (CCP §1985.3)

05-040

§5.40

Proof of Service of Notice of Privacy Rights

CH06

Chapter 6

Prejudgment Remedies

06-044

§6.44

Checklist: Documents Needed to Obtain TPO

06-056

§6.56

Checklist: Documents to Provide to Levying Officer

06-112

§6.112

Checklist: Prefiling Considerations

CH07

Chapter 7

Obtaining, Renewing, and Satisfying Judgment

07-005

§7.5

Checklist: Plaintiff’s Procedural Guide for Obtaining Default Judgment

07-015

§7.15

Stipulation for Judgment

07-016

§7.16

Judgment Pursuant to Stipulation

07-018

§7.18

Offer to Compromise Under CCP §998

07-019

§7.19

Notice of Acceptance of Offer to Compromise

07-024

§7.24

Declaration in Support of Motion for Summary Judgment
(Book Account)

07-025

§7.25

Declaration of Assignee in Support of Motion for Summary Judgment (Book Account)

07-029

§7.29

Judgment Pursuant to Stipulation (In Open Court)

07-030

§7.30

Judgment After Trial by Court

07-055

§7.55

Subordination Agreement

07-056

§7.56

Letter of Demand to Escrow Company

07-057

§7.57

Release of Judgment Lien

07-061

§7.61

Judgment by Default by Court in Joint Debtor Proceeding

CH08

Chapter 8

The Debtor’s Property

08-019

§8.19

Declaration in Support of Motion for Examination (More Often Than Every 120 Days)

08-023

§8.23

Declaration in Support of Ex Parte Application for Order for Appearance of Third Person

08-024

§8.24

Memorandum in Support of Ex Parte Application for Order
for Appearance of Third Person

08-036

§8.36

Questionnaire: Examination of Debtor

08-038

§8.38

Notice to Attend and Produce Documents at Debtor’s Examination

08-039

§8.39

Documents to Be Produced at Examination

08-041

§8.41

Declaration Supporting Subpoena Duces Tecum

08-044

§8.44

Order to Deliver Specific Property

08-047

§8.47

Order Forbidding Transfer of Property or Payment of Debt

08-051

§8.51

Order to Show Cause in re Contempt

08-052

§8.52

Declaration in re Contempt for Failure to Appear

08-053

§8.53

Declaration of Service

CH09

Chapter 9

Writ Enforcement; Exemptions; Homesteads

09-004B

§9.4B

Sample Affidavit of Identity (CCP §680.135)

09-007

§9.7

Judgment Creditor’s Instructions to Levying Officer

09-026A

§9.26A

Affidavit That Individual Named on Account Is Spouse of Judgment Debtor (CCP §700.160(b)(2))

09-026B

§9.26B

Affidavit in Support of Execution Against Account Standing in Fictitious Business Name of Debtor (CCP §700.160(b)(3))

09-045

§9.45

Ex Parte Order Staying Enforcement of Judgment

09-047

§9.47

Order Recalling and Quashing Writ of Execution

09-085

§9.85

Declaration of Homestead

09-089

§9.89

Order to Show Cause Why Order for Sale of Dwelling Should Not Issue

09-090

§9.90

Application for Order for Sale of Dwelling

CH11

Chapter 11

Miscellaneous Remedies

11-008

§11.8

Notice of Motion for Order to Charge Partner’s Interest and Appoint Receiver

11-009

§11.9

Declaration in Support of Motion for Order to Charge Partner’s Interest and Appoint Receiver

11-009A

§11.9A

Memorandum in Support of Motion for Order to Charge Partner’s Interest and Appoint Receiver

11-010

§11.10

Order to Charge Partner’s Interest and Appoint Receiver

11-015

§11.15

Statement of Filing of Notice of Lien

11-024

§11.24

Notice of Motion for Assignment Order

11-025

§11.25

Declaration in Support of Motion for Assignment Order

11-025A

§11.25A

Memorandum in Support of Motion for Assignment Order

11-026

§11.26

Assignment Order

11-030

§11.30

Notice of Assignment Order

11-052

§11.52

Notice of Motion for Order Fixing Costs of Enforcement of Judgment

11-053

§11.53

Declaration in Support of Motion for Order Fixing Costs of Enforcement of Judgment

11-054

§11.54

Order Fixing Costs of Enforcement of Money Judgment

CH12

Chapter 12

Bankruptcy Considerations: Representing Debtors and Creditors in Bankruptcy

12-021

§12.21

Checklist: Should Client File a Bankruptcy Case?

12-073

§§12.73–12.77

Engagement Letter for Representation of Chapter 7 Debtor

 

§12.75

Exhibit B to Engagement Letter: Disclosure Under 11 USC §527(a)(2)

 

§12.76

Exhibit C to Engagement Letter: Statement Under 11 USC §527(b)

 

§12.77

Exhibit D to Engagement Letter: Disclosure Under 11 USC §527(c)

12-080

§12.80

Letter to Creditor Regarding Violation of Automatic Stay

12-119

§12.119

Notice of Motion and Motion for Examination and Production of Documents Under Fed R Bankr P 2004

12-120

§12.120

Order on Motion for Examination and Production of Documents Under Fed R Bankr P 2004

CH13

Chapter 13

Debt Collection and Family Law

13-023A

§13.23A

Notice of Motion for Earnings Withholding Order

13-023B

§13.23B

Declaration in Support of Motion for Earnings Withholding Order

13-023C

§13.23C

Memorandum in Support of Motion for Earnings Withholding Order

13-023D

§13.23D

Earnings Withholding Order

 

Selected Developments

December 2017 Update

In a decision discussing the Bankruptcy Code’s protections against false or deceptive filings of proofs of claim, the United States Supreme Court found that filing a proof of claim in the bankruptcy court was not “unfair” under the Fair Debt Collection Practices Act (FDCPA) (15 USC §§1692–1692p). Midland Funding, LLC v Johnson (2017) ___ US ___, 137 S Ct 1407. See §2.4.

The United States District Court for the Southern District of California found that the Bankruptcy Code preempts an FDCPA claim altogether when the claim is grounded on a violation of the Bankruptcy Code. Scally v Ditech Fin., LLC (SD Cal, Jan. 26, 2017, No. 16cv1992-WQH-WVG) 2017 US Dist Lexis 11701. See §2.4.

Even when the debtor is unrepresented, creditor’s defense counsel is not subject to the FDCPA, unless other reasons exist for counsel to be subject to it. Bird v Real Time Resolutions, Inc. (ED Cal, Feb. 17, 2017, No. 5:16-cv-04614-EJD) 2017 US Dist Lexis 23240. See §2.9.

Entities who acquire obligations through corporate mergers and acquisitions are not subject to the FDCPA, because they are not “debt collectors” as defined under the FDCPA. Henson v Santander Consumer USA Inc. (2017) ___ US ___, 137 S Ct 1718. See §2.13.

A trustee pursuing a nonjudicial foreclosure is not a debt collector under the FDCPA. Ho v Recontrust Co., N.A. (9th Cir 2017) 858 F3d 568. See §2.13.

Settling a split of authority, the Court of Appeals for the Ninth Circuit found that homeowners and condominium association fees are subject to the FDCPA. Mashiri v Epsten Grinnell & Howell (9th Cir 2017) 845 F3d 984. See §2.18.

For a false or misleading statement by a debt collector to be actionable, it must be material. Afewerki v Anaya Law Group (9th Cir, Aug. 18, 2017, No. 15-56510) 2017 US App Lexis 15657. See §2.34.

California enacted the Identity Theft Resolution Act (Stats 2016, ch 376), which amends CC §§1785.16.2 and 1788.2 and requires debt collectors, when informed by a debtor that a debt is the result of fraud or identity theft, to engage in necessary due diligence to make a determination of whether the debt actually belongs to the debtor by taking specified actions. See §2.44.

The Consumer Financial Protection Bureau (CFPB) has issued a report highlighting concerns and issues that it has addressed in the past year: CFPB Supervisory Highlights Consumer Report Special Edition (Mar. 2, 2017). See §2A.1.

The Consumer Financial Protection Act of 2010 (Pub L 111–203, 124 Stat 1376) is a law of general applicability and gives the CFPB broad investigative authority such that Indian tribal lending entities were subject to its jurisdiction. CFPB v Great Plains Lending, LLC (9th Cir 2017) 846 F3d 1049. See §2A.9.

The CFPB has updated its Supervision and Examination Manual as of August 2017. See §§2A.11, 2A.12, 2A.14, 2A.17–2A.19.

In a consent order, the CFPB ordered the Navy Federal Credit Union (Navy FCU) to provide $23 million in restitution to debtors impacted by Navy FCU’s improper debt collection activities. In the Matter of Navy Federal Credit Union (Oct. 11, 2016) CFPB File No. 2016–CFPB–0024. See §2A.21A.

The amounts of civil money penalties that the CFPB may assess for violations of federal consumer financial law have been increased. 12 CFR §1083.1. See §2A.24.

A new section on the constitutionality of the Telephone Consumer Protection Act (TCPA) (47 USC §227) has been added in chap 2B. See §2B.8A.

In considering a case on remand from the Supreme Court, the Ninth Circuit found that statutory violations of the Fair Credit Reporting Act (FCRA) (15 USC §§1681–1681x) satisfied both the particularized and concrete harm requirements for constitutional Article III injury-in-fact standing, permitting the plaintiff to sue on the basis of the statutory violations alone. Robins v Spokeo, Inc. (9th Cir, Aug. 15, 2017, No. 11–56843) 2017 US App Lexis 15211 (Spokeo III). See §§2B.15, 2B.16, 2C.18.

The Third Circuit held that receipt of a single prerecorded voicemail sent without express consent causes intangible harm sufficient to afford Article III standing under the TCPA. Susinno v Work Out World Inc (3d Cir 2017) 862 F3d 346. See §2B.16.

Calling the plaintiff numerous times without his or her consent may give rise to standing under the TCPA, and calls that serve both informational and telemarketing purposes qualify as telemarketing. See Flores v Access Ins. Co. (9th Cir. Mar. 13, 2017, No. 2:15-cv-02883) 2017 US Dist Lexis 36486. See §2B.16, 2B.41.

The Ninth Circuit also found that the mere receipt of unsolicited telemarketing calls may confer standing under the TCPA. Van Patten v Vertical Fitness Group, LLC (9th Cir 2017) 847 F3d 1037. See §§2B.16, 2B.25, 2B.29, 2B.36, .

One federal district court found that each phone call must be considered separately for purposes of assessing standing under the TCPA (Romero v Department Stores Nat’l Bank (SD Cal, Aug. 5, 2016, No. 15–CV-193–CAB-MDD) 2016 US Dist Lexis 110889), while another court found that a number of unwanted calls may be considered in the aggregate to determine their impact (O’Shea v Am. Solar Solution (SD Cal, June 27, 2017, No. 3:14-cv-00894-L-RBB) 2017 US Dist Lexis 99583). See §2B.16.

The Seventh Circuit held that a TCPA class action cannot be mooted by the payment of the full amount recoverable by the named plaintiff in a class action. Fulton Dental v Bisco, Inc. (7th Cir 2017) 860 F3d 541. See §2B.22.

When the consumer agrees to a contract that contains a clause giving the caller the right to call the customer’s phone number, the consumer may not unilaterally alter the terms of the contract to revoke consent. Reyes, Jr. v Lincoln Auto. Fin. Servs. (2d Cir 2017) 861 F3d 51. See §§2B.34A, 2B.35.

For purposes of the TCPA, revocation of express consent to be called by telemarketers may be partial. Schweitzer v Comenity Bank (11th Cir, Aug. 10, 2017, No. 16-10498) 2017 US App Lexis 14768. See §2B.36A.

Although Postal Instant Press, Inc. v Kaswa Corp. (2008) 162 CA4th 1510 held that the concept of reverse piercing of the corporate veil does not apply in California, the Fourth Appellate District of the Court of Appeal of California has held that Postal Instant Press is limited to corporations and reverse veil piercing is available for limited liability companies. Curci Invs., LLC v Baldwin (2017) 14 CA5th 214. See §§3.106, 11.1.

The California Supreme Court has found that an agreement that is procedurally unconscionable but not substantively unconscionable is enforceable. Baltazar v Forever 21, Inc. (2016) 62 C4th 1237. See §4.31.

The California Supreme Court found that a dealership’s practice of backdating post purchase financing contracts did not violate the Automobile Sales Finance Act. Raceway Ford Cases (2016) 2 C5th 161. See §4.42.

The former San Francisco Superior Court Rules concerning electronic service have been amended such that all electronically filed documents must now be served electronically. There is no longer an exemption from this requirement under Cal Rules of Ct 2.251(c). San Francisco Superior Ct R 2.11(P). See §§4.63, 4.70, 4A.33–4A.34, 5.14, 5.21, 5.28–5.29, 5.35, 5.37, 5.39–5.40, 7.29, 8.18, 8.23–8.24, 8.38, 8.40–8.41, 8.47, 8.51–8.53, 13.23A.

A borrower did not waive an usury claim by signing a forbearance agreement containing a unilateral general release of his claims against the lender. Hardwick v Wilcox (2017) 11 CA5th 975. See §4.90.

A savings account maintained by the judgment debtor for the qualified higher education expenses of the debtor’s children under 26 USC §529 was not exempt from the collection efforts of the judgment debtor. O’Brien v Ambs (2016) 246 CA4th 942. See §4A.56.

In a fraudulent transfer lawsuit, the transferees of the debtor’s property successfully established a good faith defense by proving they did not have actual knowledge of the debtor’s fraudulent intent in conveying the property to his father, who then obtained a reverse mortgage on the property from the transferees. Nautilus, Inc. v Yang (2017) 11 CA5th 33. See §§8.7A, 12.115.

The scope of questions that may be asked by a judgment creditor in a third-party judgment debtor examination may include the location of assets no longer in the possession of the third party. Yolanda’s, Inc. v Kahl & Goveia Commercial Real Estate (2017) 11 CA5th 509. See §8.20.

The California Supreme Court clarified that for sound reasons based in logic and policy, the 25-percent existing cap on creditor reach of discretionary income distributions under Prob C §15306.5 applies equally to distribution orders of principal and interest made under Prob C §15307. Carmack v Reynolds (2017) 2 C5th 844. See §11.43.

Even though a debtor’s disclaimer of trust property prevented creditors from accessing the property under Prob C §283, the disclaimer was preempted by the fraudulent transfer provisions of the Fair Debt Collection Practices Act (FDCPA) (15 USC 1692–1692p) such that the United States Small Business Association could reach the property to satisfy the debtor’s debt. United States SBA v Bensal (9th Cir 2017) 853 F3d 992. See §12.22.

A claim based on a judgment entered against debtors for fraudulent conversion of stock was not subject to subordination. Khan v Barton (In re Khan) (9th Cir 2017) 846 F3d 1058. See §12.94.

A law firm’s prepaid retainer agreement with a debtor qualified as an executory contract and was rejected in bankruptcy by operation of law under 11 USC §365. Ulrich v Schian Walker, P.L.C. (In re Boates) (BAP 9th Cir 2016) 551 BR 428. See §12.99.

Federal regulations reflecting the holdings of U.S. v Windsor (2013) ___ US ___, 133 S Ct 2675 and Obergefell v Hodges (2015) ___ US ___, 135 S Ct 2584 regarding same-sex marriage and defining terms in the IRC describing the marital status of taxpayers for federal tax purposes were issued in 2016. TD 9785, 2016–2 Cum Bull 361. See §13.50.

A new section has been added in chap 14 discussing how a creditor who is a personal representative of a decedent debtor—or the attorney of a personal representative—may make a claim against the decedent’s estate. See §14.17A.

About the Second Edition Authors

KENNETH H. BROWN is of counsel with the law firm of Pachulski, Stang, Ziehl & Young, P.C., San Francisco. He received his B.A. from the University of California, Santa Barbara, in 1977 and his J.D. in 1981 from the University of California, Hastings College of the Law. Mr. Brown is the author of Tenants in Distress: Pitfalls and Opportunities for the Retail Landlord, Shopping Center Bus (1998); Law Firm Breakups and Bankruptcies, 3 Legal Malprac Rep 2 (1992). Mr. Brown cowrote, with M. Sheneman, Dissolutions of Professional Firms Under State Law (Third Annual Northwest Bankruptcy Institute, 1989). He is a lecturer for the Bar Association of San Francisco and Santa Clara County Bar Association and is a member of the American Bar Association, Litigation and Bankruptcy sections; San Francisco Bar Association, Commercial Law and Bankruptcy sections; and the California State Bar Committee on Debtor/Creditor Relations and Bankruptcy.

JUNE D. COLEMAN is a shareholder at Kronick Moskovitz Tiedemann & Girard, Sacramento, where her areas of emphasis are the Fair Debt Collection Practices Act and the Fair Credit Reporting Act, commercial litigation, and creditor rights. She received her B.S. from California State University, Sacramento, in 1989, and her J.D. from the University of the Pacific McGeorge School of Law in 1997, where she was a member of the Order of the Coif and the managing editor of the Pacific Law Journal. As a defense litigator in the firm’s Business Services Practice Group, Ms. Coleman represents clients in complex civil litigation disputes at both the trial and appellate levels, particularly credit and collection professionals in actions concerning state and federal consumer protection laws. She is a member of several bar associations and professional associations, including the Sacramento County Bar Association, where she was President in 2012, and Women Lawyers of Sacramento, where she was president in 2008. Ms. Coleman speaks and writes frequently on her areas of expertise. For five straight years (2008–2012), Ms. Coleman has been voted by her peers as one of the top five percent of lawyers practicing in Northern California, earning her a spot on the Law & Politics Magazine Northern California Super Lawyers list; she was recently voted “Best of the Bar” by the Sacramento Business Journal. Ms. Coleman is a Martindale Hubbell AV Preeminent rated attorney.

RICHARD L. ENKELIS (1943–2008) was a sole practitioner in Pasadena, specializing in creditor-debtor relations and enforcement of judgments. He received his B.A. in 1965 from the University of Michigan and his J.D. in 1968 from the University of Southern California Law Center. He spoke at numerous legal education courses and published many articles in the areas of creditor-debtor relations, enforcement of judgments, and litigation. Mr. Enkelis was a guiding spirit of the origins of the book, an author of chapters 1, 2A, 7, 8, 10, 11, and 13, and a longtime update author of several chapters.

IRWIN J. ESKANOS attended the University of Colorado, Boulder, and the University of Denver for undergraduate work and received his J.D. in 1964 from the University of San Francisco School of Law. Mr. Eskanos is a principal in Eskanos & Adler, P.C., Oakland, specializing in retail and commercial debt recoveries. He has participated in eight CEB programs and was an author of the supplement to the CEB Debt Collection Manual. He is a member of the Commercial Law League of America, the National Association of Retail Collection Attorneys, and the American and California State Bar Associations. His firm is the sixth largest collection law firm in the United States.

RAYMOND R. GOLDSTEIN is the managing partner of the Center for Enforcement of Family Support, Los Angeles, a private law firm established in 1979 dedicated to the enforcement of judgments, primarily within the domestic arena. He received his J.D. from the University of West Los Angeles in 1993. Mr. Goldstein sits on the Executive Committee for the Family Law Section of the Los Angeles County Bar Association where he chairs the Outreach Committee, as well as chairing the Financial Issues (South) Committee for the Family Law Executive Committee of the State Bar of California. He is an Honorary Member of the California Association of Judgment Professionals, and is a member of the Beverly Hills Bar Association, Culver/Marina Bar Association, and the American Bar Association. Mr. Goldstein is a repeat lecturer for the American Academy of Matrimonial Lawyers, Pepperdine University, Los Angeles County Bar Association and dozens of other bar associations, educational institutions, and other organizations. He has served as a media expert to television, radio, and newspapers regarding enforcement of support and other judgments, and has authored articles and materials for legal journals and for educational courses. He is the author of Enforcing Civil Money Judgments (Cal CEB Action Guide).

SCOTT J. HYMAN is a shareholder with Severson & Werson, A.P.C., in its Irvine office and is a member of the state bars of California and Texas. Mr. Hyman received his B.A. from The Pennsylvania State University with honors in 1987 and his J.D. from the University of the Pacific McGeorge School of Law, with distinction, in 1990. Mr. Hyman is an experienced trial attorney who assists consumer financial service companies in a wide range of litigation, including defending individual and class action matters filed under the Fair Debt Collection Practices Act, Fair Credit Reporting Act, and Telephone Consumer Protection Act.

DAVID D. LITTLE is a Senior Associate at Hartog, Baer, Hand, P.C., in Orinda, California, where his practice focuses on estate planning and the administration of trusts and estates. He received his B.S. degree in Finance from San Jose State University in 1990 and his J.D. from the University of San Francisco School of Law in 2000. Mr. Little is certified as a specialist in Estate Planning, Trust and Probate Law by the State Bar of California Board of Legal Specialization. He is a member of the State Bar of California’s Trust and Estate Section and the Alameda County Bar Association, is Treasurer of the East Bay Trust and Estate Lawyers, and is a Past President of the East Bay Estate Planning Council. He lectures and writes frequently on trust and estate matters throughout California.

IAIN A. MACDONALD received his law degree from the University of San Francisco School of Law in 1971 and specializes in bankruptcy law at the Law Offices of Iain A. Macdonald in San Francisco. He has written several CEB Action Guides and lectured extensively for CEB on the subject of bankruptcy. He is a former chairperson of the Commercial Law and Bankruptcy Section of the Bar Association of San Francisco and has served on its board of directors. He has been an adjunct professor at the University of San Francisco School of Law, teaching the bankruptcy class from 1984 through 1994.

GREGORY C. NUTI received his A.B. in 1986 from the University of California, Berkeley, School of Law, and his J.D. in 1990, magna cum laude, from Santa Clara University. Mr. Nuti is a partner at Schnader Harrison Segal & Lewis LLP, San Francisco, where his areas of practice include corporate litigation and creditors’ rights and business restructuring. He is experienced in both bankruptcy and litigation in state, federal, and bankruptcy courts, and has expertise in all types of commercial agreements, including secured and unsecured loans, sales, leases, consignments, and distribution agreements.

PHILIP J. RHODES received his B.S. in 1989 from Arizona State University, and his J.D. in 1992 from the University of California, Davis, School of Law. Formerly an associate with Diepenbrock, Wulff, Plant & Hannegan, LLP, Sacramento, Mr. Rhodes is now a sole proprietor, specializing in creditors’ rights law for both secured and unsecured creditors, as well as bankruptcy, insolvency, and reorganizations.

ROGER R. RUBIN, of the Law Offices of Roger R. Rubin, San Francisco, received his B.A. from San Francisco State University, and his J.D. from the University of California, Hastings College of the Law. Mr. Rubin has lectured extensively and presented numerous legal education programs in the areas of enforcement of judgments, debtors’ rights, and creditors’ remedies. He acted as pro tem judge for the San Francisco Small Claims Court from 1982 to 1993, and currently acts as settlement conference pro tem judge.

ERIC J. TROUTMAN is a partner with Dorsey & Whitney, LLP, at its Costa Mesa office, where his practice focuses on financial services litigation, general and complex commercial litigation, and appellate work. Mr. Troutman received his B.A. in 1999 from the University of California, Berkeley, and his J.D. in 2003 from the University of California, Los Angeles, School of Law. He is an experienced trial attorney who assists consumer financial service companies in a wide range of litigation, including defending individual and class action matters filed under the Fair Debt Collection Practices Act, Fair Credit Reporting Act, and Telephone Consumer Protection Act (TCPA). He has served as lead defense counsel on dozens of TCPA class actions. He is a member of the State bar of California, the Los Angeles County Bar Association, the Orange County Bar Association, and the American Bar Association.

BRIAN N. WINN is owner of Winn Law Group, APC (formerly Winn and Sims) in Fullerton and specializes in creditors’ rights, as well as collections, credit union law, claim and deliveries, lemon law, and civil defense. He received his B.A., with honors, from the University of California, Los Angeles, in 1973, and his J.D. from Southwestern University School of Law in 1977. Mr. Winn formed the California Creditors Bar Association in 2004 and was its first president. He is a member of the California Bar Association, the California federal district courts, the United States Court of Appeals, the Debt Buyers Association, and several bankruptcy forums and local bar associations. Mr. Winn was a founding member of the National Association of Retail Collection Attorneys. He has served as Judge Pro Tem for the Los Angeles Superior Court for a number of years. Mr. Winn is a frequent lecturer to the creditor community.

About the 2017 Update Authors

RAYMOND R. GOLDSTEIN is the update author of chapters 8–11 and 13. Please see his biography in the About the Authors section.

SCOTT J. HYMAN is the update author of chapter 2. Please see his biography in the About the Authors section.

DAVID D. LITTLE is the update author of chapter 14. Please see his biography in the About the Authors section.

ROGER R. RUBIN is the update author of chapters 4 and 4A. Please see his biography in the About the Authors section.

ERIC J. TROUTMAN is the update author of chapter 2B. Please see his biography in the About the Authors section.

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