Collect on an Abstract of Judgment Secured by Real Property

 

Several years ago, you won a lawsuit.  After obtaining a judgment, your attorney recorded an abstract of judgment against real property.  It’s been three years, five years, even more, and you have not recovered the owed money, or the interest accumulating by law.  Your attorney can help you quickly collect what you are owed.

​

The High Price of Real Estate Means There is Equity to be Collected: The median home price in Los Angeles County in 2012 was around $367,000.  As of October 2022, that price was around $854,000.  During that time, the median home price in Orange County went from $582,000 to $1,182,000.  Counties in both Northern and Southern California all saw similar increases.  In other words, there is equity to be collected.

​

Traditional Debt Collection Techniques:  On behalf of the creditor, the firm is able to: (a) instruct the Sheriff to levy a bank account or other personal property; (b) garnish wages; (c) seize vehicles or other personal property; (d) ask the court for injunctive relief; (e) update the judgment to include accumulated interest; (f) seize payments owed; (g) obtain bank records; (h) conduct judgment debtor examinations; (i) issue subpoenas; (j) propound written discovery; (k)  initiate insolvency proceedings; and/or (l) seize all or part of a beneficiary’s interest in a trust.

​

Using a Receiver to Sell Real Property:  When traditional debt collection techniques are not successful, the Superior Court will appoint a receiver to, for example, sell the debtor’s house or other real estate, collecting the proceeds for the judgment creditor.  A receivership may operate a business until the judgment is paid.  The receiver applies to the Court for compensation out of the proceeds of sale.  Either commercial or residential properties may be sold to satisfy the judgment.  In a recent case, our firm helped a client recover over $800,000 on a judgment, secured by an abstract on a residential property, and the debtor paid the receiver’s fees.

​

Homestead Exemption: California law shields homeowners from debt collection with the “homestead exemption.”  The exemption equals the greater of: (a) the countywide median sales price, not to exceed $600,000; or (b) $300,000.  The statute also mandates an annual adjustment for inflation.  Therefore, a careful evaluation of the equity in the property is important.

​

Free Evaluation:  If you have an abstract of judgment secured against real property with equity, please contact us for a free review and assessment of your case.

​

Nathan Wirtschafter, Esq. is a California business trial attorney.  His law practice encompasses a broad range of business matters, and he represents clients in state and federal courts, arbitration and mediation.  He can be reached at (818) 660-2518 and ndw@ndwlaw.com.

​

Back to Articles Page.

​

​