In Judgment Collections, creditors can often hit walls then debtors do things like:

*Ignore garnishments, assignment orders, charging orders, other court orders;

*Completely fail to cooperate / lie in discovery proceedings; fail to produce and documents

*Keep on shifting corporate entities, to where creditor cannot even keep up.

When the record shows a pattern of debtor noncompliance, the Creditor may be able to convince the Court to appoint a receiver to step in, and carry out certain tasks, which the Court will enumerate in the receivership order. The statute for appointing a receiver post judgment is C.C.P. 708.620, which simply reads as follows:

“The court may appoint a receiver to enforce the judgment where the judgment creditor shows that, considering the interests of both the judgment creditor and the judgment debtor, the appointment of a receiver is a reasonable method to obtain the fair and orderly satisfaction of the judgment.”

Like Alter Ego, this remedy is very broad, and the requirements are very vague and case-specific. Certain situations where a receiver may be able to be appointed are:

-Debtor has Liquor License, and Creaditor wishes to sell it (C.C.P. 708.630)

-Debtor Company is ignoring wage garnishments or other orders (Crocker Nat’l Bank v O’Donnel)

-To enforce a Charging Order (Corporations Code 17705.03) or administer an Assignment Order (C.C.P. 708.510(a))

-To receive rents, to generally “Carry a Judgment into effect”. (C.C.P. 564)

Again, like Alter-Ego, the requirements are vague for this remedy, but even more so than alter ego, a showing must be made that debtor is “acting badly.” A receiver is considered a “drastic remedy” and the Court needs to be shown that the creditor has done all it can, the debtor has resisted every step of the way, and the receiver is “the last house on the street”- otherwise, the creditor will end up with bupkis and the slimy debtor will sail off into  victory.

The Evanns Collection Law Firm has been doing judgment enforcement in Los Angeles since 2011 and understands these remedies.  Phone calls are always free and no obligation. Call now at 213-292-6888.