Asset Discovery
Examination of Judgment Debtor and Third Parties: An examination of a judgment debtor or third party is the postjudgment equivalent of a deposition. An examination can be used to identify property in the possession or control of the judgment debtor or a third person (e.g., a nondebtor spouse), to learn about property the debtor may obtain in the future, and to require the debtor or third person to turn over property to the levying officer. Upon service of an examination order (below), the judgment debtor must appear in court (or before a referee) "to furnish information to aid in enforcement of the money judgment." [Ca Civ Pro § 708.110(a)] A third person (e.g., a nondebtor spouse) may be ordered to appear for examination upon the judgment creditor's application showing to the court's satisfaction that the third person is in possession or control of property in which the judgment debtor has an interest or is indebted to the debtor for more than $250. [Ca Civ Pro § 708.120] In addition, any person with knowledge leading to enforcement of the judgment (e.g., debtor's bookkeeper, accountant or nondebtor spouse) can be subpoenaed to testify before the court or a referee in an examination proceeding in the same manner as a trial witness. [See Ca Civ Pro §§ 708.130, 708.140]
If an order to appear for an examination is properly served (i.e., personally served by a sheriff, marshal, person appointed by the court or a registered process server) and the examinee fails to appear, the court may issue an arrest warrant requiring the examinee to appear in court and explain the nonappearance. [Ca Civ Pro § 708.170(a)(1)] Upon a finding that the examinee did not have good cause for failing to appear, the court must award the judgment creditor reasonable attorney fees incurred for the examination proceeding. (Attorney fees awarded against the judgment debtor are added to the principal amount of the judgment.) [Ca Civ Pro § 708.170(a)(2)]
At the conclusion of the examination, the court may order that a judgment debtor's interest in nonexempt property be applied to satisfy the judgment. Such a "turnover order" is authorized both where the debtor is examined and where an examination of a third person reveals that the person possesses or controls property in which the debtor has an interest or owes over $250 to the debtor. [Ca Civ Pro § 708.205(a)] The court may order the examinee to deliver the property or funds to the levying officer. Turnover orders are enforceable by contempt (Ca Civ Pro §§ 1209-1222). [See Comment to Ca Civ Pro § 708.205]
TYPES OF ASSET DISCOVERY
Written Interrogatories to Judgment Debtor
Inspection Demand to Judgment Debtor
Creditor's Suit Against 3rd Party
Charging Orders Against Debtor Partnership/LLC Interests
Collection of Debts Owed Judgment Debtors by State or Local Public Entities
Enforcement of Judgment by Assignees
Enforcement Against Joint Debtors
Amending Judgment to Change Name of Judgment Debtor
Amending Judgment to Add Nonparty Alter Egos as Judgment Debtors
Amending Judgment to Add Third Party (Not Alter Ego)
Enforcement Against Beneficiary's Trust Interests
Enforcement Against Nonvested Contingent Interests
Enforcement Against Revocable Inter Vivos Trust Interest
Enforcement Against Property in Guardianship or Conservatorship Estate
