Creditor’s Suits

Code of Civil Procedure Part 2, Title 9, Division 2, Chapter 6, Article 3 deals with creditor’s suits in the enforcement of money judgments in California civil actions.

Section 708.210 provides that, if a third person has possession or control of property in which the judgment debtor has an interest or is indebted to the judgment debtor, the judgment creditor may bring an action against the third person to have the interest or debt applied to the satisfaction of the money judgment.

Section 708.220 requires the judgment debtor to be joined in an action brought pursuant to this article but is not an indispensable party. The residence of the judgment debtor may not be considered in the determination of proper venue unless otherwise provided by contract between the judgment debtor and the third person.

Section 708.230 requires an action to be commenced pursuant to this article before the expiration of the later of two specified times. An action may not be commenced pursuant to this article after the period for enforcement of the money judgment has expired.

Section 708.240 allows the judgment creditor to apply to the court in which an action under this article is pending for either or both of the two specified conditions.

Section 708.250 specifies that service of summons on the third person creates a lien on the interest of the judgment debtor in the property or on the debt owed to the judgment debtor that is the subject of an action under this article.

Section 708.260 provides that, in an action brought pursuant to this article, the judgment debtor may claim that all or any portion of the property or debt is exempt from enforcement of a money judgment. The claim must be made by application to the court on noticed motion, filed with the court and served on the judgment creditor not later than 30 days before the date set for trial.

Section 708.270 states that there is no right to a jury trial in an action under this article.

Section 708.280 requires the court to determine any exemption claim made in the action. If the judgment debtor establishes to the satisfaction of the court that the property or debt is exempt from enforcement of a money judgment, the court adjudges it. If the judgment creditor establishes that the third person has property in which the judgment debtor has an interest or is indebted to the judgment debtor, the court renders judgment accordingly.

Section 708.290 provides that costs incurred by or taxed against the judgment creditor in an action under this article may not be recovered from the judgment debtor as a cost of enforcing the judgment.