Bank levies are nice, but the bigger balances are often found in brokerage accounts/investment accounts containing stocks/bonds or other equities.  These are all lumped into a category of “Investment Property” as defined in Commercial Code 9102(a)(49) (which contains many definitions useful to enforcement).  These “Investment Property” levies are performed under Code of Civil Procedure 700.130, and have special rules, which are contained in the somewhat enigmatic Section 8112 of the Commercial Code. [Example of enigmatic nature of 8112, is 8112(e))]

“A creditor whose debtor is the owner of a certificated security, uncertificated security, or security entitlement is entitled to aid from a court of competent jurisdiction, by injunction or otherwise, in reaching the certificated security, uncertificated security, or security entitlement or in satisfying the claim by means allowed at law or in equity in regard to property that cannot readily be reached by other legal process.”

This catch-all provision essentially says a creditor can ask a court for whatever is necessary, to reach securities, security certificates, and other investment property assets. Institutions will often require court orders under this code, to actually hand over or liquidate investments.

These and other special rules apply to these sorts of levies. Oftentimes, the balances in investments accounts are high (we have levied over $1million before), and the asset classes are often mixed in with retirement assets such as IRA’s, which enjoy the benefits of very broad retirement asset exemptions (See Exemptions write up, and Code of Civil Procedure Section 704.114 for examples). This often leads to much more complicated scenarios than bank levies do.

While many perceive brokerage account levies to be similar to bank levies, they are not, and contain many more pitfalls and other complications. A competent collection law firm is best suited to do these.

Los Angeles Collection Lawyers since 2011, The Evanns Collection Law Firm has been enforcing judgments for years. We know the ins and outs of this. Phone calls are always free and no obligation. Call now at 213-292-6888.