State laws govern the rights of prevailing parties in civil lawsuits to enforce and collect their judgment awards. In California, prevailing parties must file a judicial enforcement order before they can collect their judgments and their winnings from losing parties. Through collection efforts, private creditors can garnish wages or levy bank accounts. Although both public and private agencies and individual creditors can garnish bank accounts and wages, California law limits the amounts they can lien or garnish, and does not allow them to garnish or levy exempt property.
California Judgment Exemptions
Included in the list of exemptions are: a motor vehicle, limited to $2,725 in personal assessment value; jewelry, artwork and heirlooms, limited to $7,175 in appraised value; personal business or commercial property, limited to $14,350 in assessment value; public benefit payments, such as limited percentages of unemployment benefits and Social Security benefits; and life insurance policies, limited to $11,475 in gross payments. To claim an exemption, a California debtor must file an exemption notice. California creditors can file a "Notice of Opposition to Claim of Exemption" if they receive an opposition to their judgment lien collections or wage garnishments within 10 days.
Wage Garnishment Exemptions
According to the California Civil Procedure Code and the federal United States Code, courts can order employers to garnish an employee's wages to satisfy unpaid judgments. However, courts cannot order employers to withhold an employee's wages if his wages do not exceed the federal weekly minimum wage. As of 2011, the weekly minimum salary wage is $455 or $7.25 per hour. If a debtor's employment wages exceed federal minimum wage, a California court can require an employer to withhold up to 25 percent of the weekly or hourly wage exceeding the minimum wage.
Furthermore, creditors of secured debts can lien personal and real property to enforce their judgments. California government agencies and the federal government can also intercept state income tax refunds.
Procedural Rules
Pursuant to California Code of Civil Procedure, debt collectors can enforce their judgments after waiting for at least 30 days after courts enter them. Typically, creditors have 10 years to collect their judgments in California, and judgments are enforceable for 10 years against debtors. To enforce a civil judgment through garnishment of wages or bank accounts, a creditor must complete a Writ of Execution and file it with a local California circuit or superior court. To place a lien on a debtor's personal or real property, a creditor must complete an Abstract of Judgment and file it with the local county or city clerk in which the property is located. Since California is a community property jurisdiction, spouses and registered domestic partners are jointly liable for repaying their spouse's judgment, even if they were unnamed parties in the underlying lawsuits.
Considerations
Since state laws can frequently change, do not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in California.
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