California Collection And Creditor Rights Attorneys
For over 30 years, Coleman & Horowitt, LLP, has been a trusted name in collection and creditor rights law. Our attorneys serve a diverse range of business clients, from agriculture to banking, construction to environmental, and real estate. We operate on a philosophy of providing maximum service to our clients, reinforced by our commitment to total communication. This approach ensures that we address your collection and creditor rights issues effectively and efficiently.
We have developed an enviable reputation in the representation of creditors in state and bankruptcy courts in the following areas:
- Loan workouts
- Assignment for the benefit of creditors
- Receiverships
- Creditor representation in bankruptcy
- Representation of creditor committees
- Representation of trustees and receivers
- Commercial and consumer collections (secured and unsecured)
What You Need To Know: Collection And Creditor Rights FAQ
Understanding your rights as a creditor is crucial in today’s complex financial landscape. To help you navigate these waters, we’ve addressed some common questions below.
When can a debtor’s wages be garnished?
In California, wage garnishment can occur after a creditor obtains a court judgment. Generally, up to 20% of disposable earnings can be garnished. However, there are exceptions and protections for low-income earners. It’s important to consult with an attorney to understand the specific rules that may apply to your situation.
What is the statute of limitations on collecting a debt in California?
In California, creditors typically have a four-year window to pursue collection on written contracts, starting from the date of default or the most recent payment. However, this time frame can vary depending on the specific type of debt and the circumstances involved. For oral contracts, it’s two years. However, certain types of debt may have different time limits. An experienced lawyer can help you determine the applicable statute of limitations for your specific case.
What is a demand letter?
A demand letter is a formal notice sent to a debtor requesting payment of a debt. It typically outlines the amount owed, the reason for the debt and the consequences of nonpayment. While not always legally required, a well-crafted demand letter can be an effective first step in the debt collection process and may help avoid costly litigation.
These answers provide general information, but each case is unique. For personalized advice tailored to your specific circumstances, we encourage you to reach out to our team.
Prejudgment Remedies And Asset Securitization
When you sue a commercial business for not settling their balance, it does not stop them from hiding, spending or transferring assets during a pending lawsuit. In California, you have the right to seek prejudgment remedies to freeze a debtor’s assets, which include:
- Writ of attachment: Allows you to seize and hold a debtor’s assets until the court reaches a final judgment
- Writ of possession: Gives you the chance to recover or repossess any leased specific property from the debtor before final judgment
- Receivership: Permits a court-appointed, independent receiver to manage a debtor’s property or business and prevent dissipation or waste
With these remedies in place, you can rest assured that assets are still available for you to collect after months or years of litigation. While these options are available, California law requires you to present strong evidence that necessitates a prejudgment remedy. As your debt collection attorney, it is our responsibility to ensure you comply with constitutional due process.
Post-Judgment Enforcement And Sister-State Judgments
Should a judge offer their decision, you can gain access to various tools under the Enforcement of Judgments Law:
- Writ of execution: The court authorizes law enforcement to seize a debtor’s nonexempt assets.
- Bank levies: The bank freezes the debtor’s accounts and turns the funds over to settle the final judgment amount.
- Wage garnishment: The court requires the debtor’s employer to hold back up to 20% of a debtor’s disposable earnings or 40% of the amount exceeding 48 times the state or local minimum hourly wage.
- Assignment orders: A judge forces the debtor to assign you their future income streams.
When a debtor is cornered, they will find ways to protect their bottom line. California law also gives you discovery rights to uncover a debtor’s hidden bank accounts, real estate, and other sources of income. Our aggressive approach involves compelling them to appear in court for an examination and issuing subpoenas to third parties.
If you are an out-of-state collector, California can still honor valid court judgments created from your state. However, you may only enforce a foreign money judgment after following the state’s local domestication process. Once domesticated, standard post-judgment tools allow you to locate, freeze and collect those assets under California law.
Protect Your Cash Flow With The Help Of A Collection Attorney
Our lawyers respect your creditors’ rights and will stand up for them in any forum, such as via negotiations, in mediation or at trial. Call us at 559-343-2648 or send us an email inquiry to schedule an appointment with a member of our team.
Practice Area Attorneys
Gregory J. Norys – Managing Partner
Robert K. Ashley – Partner
Darryl J. Horowitt – Founder-Partner-Mediator
Sheryl D. Noel – Partner