Assignment orders are like wage garnishments, except they can be used on almost any income stream whatsoever- even if the income is “contingent on future events” (e.g. not even really an income stream yet). (See CCP 708.510) Type of income that can be attached through assignment orders include, but are not limited to
*Commissions (e.g. real estate or other commission salespeople’s compensation, not able to be wage-garnished);
*Royalties (e.g. actors/musicians residuals)
*Rents;
*And just about any other monies going to the debtor, for just about any reason.
Assignment orders also have built into them, the remedy of restraining orders (CCP 708.520), preventing the debtor from transferring or otherwise disposing of, the payment stream, to be assigned.
CCP 708.520 restraining orders are much more useful judgment collection tool than regular CCP 527 restraining orders, because the ability to file EX PARTE (meaning the order can be gotten on as little as one days notice, so the debtor doesn’t have a chance to transfer assets or avoid- very useful for judgment enforcement) is built into the statute. This means that, arguably, the standard for getting such orders is less than the usual standard for EX PARTE relief. (Under The Ex Parte Rules of the Rules of Court, usually you must show “irreparable harm” to get ex parte relief; but under 708.520, it is likely that one would not need to make this very difficult showing, as the code simply says creditor must show “a need for the order.”)
Assignment orders can be used very broadly also, and if a Court can be convinced that monies being generated are “monies due to the debtor” – even if they are technically not going to the debtor (because they have been re-directed) – the Court may be convinced to re-direct the money to the creditor. In one example, a Debtor settled her lawsuit, but part of the settlement agreement was that the defendants were to pay debtors settlement monies to third parties. Even though the payments had been redirected to third parties, the Court believed the payments were “for the benefit of the debtor” and therefore, redirected the payments to the Creditor. In another case, Debtor redirected his wages to his ex-wife, and the Court re-directed them back to the Creditor. This saved the creditor the need to file a fraudulent transfer lawsuit. In another case, debtor was a touring musician who was going on a world tour. Sources of payment were unknown, but Court ordered debtor to keep an accounting of all payments made, and pay a portion to the creditor after is world tour.
Some Assignment order case law (updated periodically):
Detailed evidence maybe not required for assignment order. (Innovation Ventures v. N2G)
Blanket Assignment of All Debtor Receivables without naming specific ones might be allowed. (Phillipine Export v Chuidian) – Not all courts allow this, it will depend on the judge/court)
Suffice to say that Assignment orders can get very involved, as they are far more versatile judgment collection tools than one might think, by just reading the code. Collection Attorneys in Los Angeles since 2011, The Evanns Collection Law Firm has been enforcing judgments for years and knows the ins and outs of this remedy. Phone calls are always free and no obligation. Call now at 213-292-6888.