The commercial debt recovery and enforcement of judgments in California

The debts are not primarily for commercial purposes (as opposed to consumer debt) subject to the Federal Fair Debt Collection Practices Act or the Fair Debt Collection Practices California.

Enforce judgments in other states of California

(If you already have a trial in California, you should go directly to the next section.)

If 'lender has a state court litigation by a state other than California, the first step is to obtain a sister state court by a California court. (If the creditor has a final-statement of a federal court outside of California, the penalty can be done by recording in a federal district court in California, and then applied as if the process had gone there in the first place.)

The process of obtaining a sister, evaluationbegan to apply for entry of the court with a California court. The application must be filed in the county where the principal place of business - but it can be presented to a county if the company is a "nonresident". A copy of the original sentence has been duly authenticated by the issuing court must be submitted with the application. Once the request is made in California, the Chancellor must go to trial.

Ifis the possibility of irreparable injury or large (for example, the debtor is hiding or transferring assets, is on the verge of bankruptcy, or intend to leave California), the application can ask the Court to the application of or perform one immediately.

In any case, notice of entry of the sentence must be served on the debtor in the same manner as an appeal and complaint. Unless the creditor gets half of mandate or other application based ongreat or irreparable damage, the creditor must wait 30 days before starting enforcement proceedings, including obtaining an execution order, obtain and record a summary of the proceedings for the property sector, or the filing of a lien assessment of personal property. If the debtor does not file a motion to leave the decision within 30 days, the penalty comes as a failure in California was obtainedoriginally.

Implementing acts

A writ of execution is a key instrument to enforce a ruling. The debtor is not notified of this, so they usually do not find out until it is used to benefit the debtor's income or assets.

A special law enforcement should be issued for each region in which a withdrawal must be done. As a result, immediately after trial entry the best frequency to obtain a specific mandate for each provincethat the debtor has a place of business or assets. Each quote is good for 180 days and can be renewed once. Multiple sampling can be based on a single reading of the execution. Withdrawals can be drawn on bank accounts, loans, personal property, etc. Even if the intangible personal property (bank accounts, loans, notes, etc.) often has to be done first, because it is more expensive and more difficult to collect material property (inventory,equipment, etc..) However, if the debtor is a work in progress, a lien on the shares or the installation of a caregiver can be very effective, although expensive.

If time is essential - for example, due to concerns that the debtor may dispose of or give guarantees - the order of execution can be treated ex parte, which is usually faster than the process. In addition, while a temporary restraining order may be obtained ex parte against the debtor "and / or"Moreover, to provide protection if the Court refuses to issue the execution order ex parte.

If the debtor is hiding assets or keep them at home, or the activities are outside California, then a "rotation" of order can be obtained from the Court directing the debtor to transfer the property to the charging officer. This type of order is enforceable by contempt of court which may make it more effective collection of the property. Because of this, a turnoverorder must be served on the debtor personally. This type of order can not be used with third parties, even if the third party holding property of the debtor can be served with a copy of the order of execution and the notification of withdrawal.

You can also get a garnishment order if the property is held in a private residence or any other "private place". (An official may not take this collection of his property without a warrant.) It is also possible to obtain an orderappointment of a receiver or collection officer to take the measures necessary to preserve the property, for example, a debtor to avoid the expense or transfer of credits received.

Failure

Of course, the debtor may file for bankruptcy. Entities (corporations, LLC, etc.) may be a Chapter 7 bankruptcy (liquidation) or Chapter 11 bankruptcy (reorganization intended to maintain the current activity). People (Including businesses) may be a Chapter 7 bankruptcy (liquidation) or Chapter 13 bankruptcy (sometimes called a wage earner plan), with the latter often used to prevent the execution of a personal residence.

The first things to do in a bankruptcy must file a request for special notice (notice to assure receipt of all hearings, etc. in case of bankruptcy) and file a claim for the debt unless the debtor is the amount and typeDebt> and the value of assets to secure the debt due indicated on the document file or bankruptcy of the debtor is not a chapter-7 of the asset.

Each creditor has a great advantage in case of failure. Claims (debt) in bankruptcy fall into three categories. Priority claims, including costs of bankruptcy proceedings (including the costs of care receivers), and most taxes have priority over allmore. The second category is insurance claims, a secured creditor the right to be paid for security, only if there are enough other assets to pay claims of priority. If the value of assets to ensure a secured claim is not worth enough to cover the entire claim, the creditor is a creditor secured by the value of these assets and an unsecured creditor for the rest. The third category are loans that are secured by all assets.

In a Chapter 7 liquidation, the assets are sold (with some exceptions for individual debtors as "tools of trade"). So claims priority creditors are paid first, pay insurance to the extent that the value of assets to ensure their applications to cover the debts, and the rest is paid in proportion to the unsecured creditors.

In Chapter 11 reorganization (for institutions) or a plan for Chapter 13 (for people), a repayment plan isapproved. Refunds are usually three to five years. The plan need not pay unsecured claims in full all the time until the unsecured creditors receive at least part of the plan as they would if the debtor's assets were liquidated.

In Chapter 11 reorganization or Chapter 13 wage floor, the debtor must not use any "cash collateral" (as accounts receivable) securing a secured claim, unless the debtor receivesCourt approval. In these situations, the lender may require it to be "adequately protected". Some borrowers, however, the use of cash collateral without the approval of the Court. If this happens, the creditor may have to file an application for protection measures to protect your warranty. (The creditors have the opportunity to vote for or against payment plans, but the process can be complicated and will not be discussed here).

If bankruptcy is rejected (which can happen ifthe debtor does not have adequate programs or act according to the bankruptcy law), then resume collection efforts in state courts.