Tools for Collecting on a Family Law Judgment – Debtor’s Exams

If a litigant owes money to the other party for overdue child or spousal support, attorneys' fees, or an unpaid equalizing payment, it may appear that the money is uncollectible; however, there are steps you can take.

Judgment

First,  your attorney will need to obtain a judgment and file the abstract of judgment with the county. Once the judgment is secured, collections can begin.  A debtor’s exam can be utilized to gather information about the assets and income of the obligor.

Definition and Purpose of a Debtor's Examination 

A debtor's examination is a post-judgment legal process intended to uncover assets that a judgment debtor may possess to satisfy a judgment. This examination enables the judgment creditor to conduct a comprehensive inquiry into the debtor's property and business affairs. Additionally, the process allows the judgment creditor to summon witnesses with relevant knowledge of the debtor's assets.

How Do I Initiate a Debtor's Examination?

• The judgment creditor files a request with the court for an order compelling the judgment debtor to appear and provide information to assist in enforcing the judgment. This application and order are processed according to California Code of Civil Procedure §§708.110, 708.111, and 708.170.

• The process involves personally serving an Application and Order for Appearance and Examination (commonly referred to as orap or oex) on the debtor or third parties holding the debtor's property.

What Happens at a Debtor’s Examination?

• During a debtor's examination, the creditor or the creditor’s attorney will inquire about the debtor's financial situation. They may ask questions such as where you work, what your earnings are, where you bank, and what properties you own. They can also inquire about what your spouse or registered domestic partner earns or owns.  

• The creditor may also request that you submit a Judgment Debtor's Statement of Assets (form SC-133).   

• The cost of the examination can be added to the amount due by the debtor.

• The debtor may need to bring copies of financial papers to the court date.

• If the debtor refuses to answer questions, the parties will go back to the courtroom, where the judge will order the debtor to respond.

• If the debtor is served with the Order to Produce Statement of Assets and to Appear for Examination (form SC-134), they need to bring a completed copy of their Judgment Debtor's Statement of Assets (form SC-133) to the court on the date of the exam. If the debtor does not want to complete the forms, they must pay the amount due before the court date.

• A competent attorney will arrive at the examination with blank writs of execution to present to the court immediately, initiating the collection of any assets or income streams uncovered during the exam.

What are Each Party's Rights and Obligations During the Examination

• The judgment creditor may question the debtor about their assets, including property no longer in their possession.

• Third parties who owe money to the debtor or hold the debtor's property may also be examined.

• Service of the order on such third parties creates a lien on the debtor's interest in the property or debt for one year unless extended or terminated by the court.

What are the Consequences of Non-Compliance?

• Failure to appear at the examination may result in arrest, contempt of court, and an order to pay the creditor's attorney's fees.

• The court may impose sanctions, including monetary penalties or other just orders, for failure to comply with the examination order.

Conclusion
A debtor's examination is a critical tool for judgment creditors in California to enforce monetary judgments. The process is designed to ensure that creditors can identify and access the debtor's assets to satisfy the judgment. The law provides for a broad scope of inquiry, allowing creditors to question the debtor and third parties about assets and liabilities. A knowledgeable attorney can utilize the debtor's examination as a powerful mechanism for enforcing judgments in California, providing creditors with a wide-ranging inquiry into the debtor's assets.

Contact Livingstone Law, APC at livingstonelawsd.com to schedule a free consultation.