assignment order statutes - california

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CODE OF CIVIL PROCEDURE SECTION 708.510-708.560 708.510. (a) Except as otherwise provided by law, upon application of the judgment creditor on noticed motion, the court may order the judgment debtor to assign to the judgment creditor or to a receiver appointed pursuant to Article 7 (commencing with Section 708.610) all or part of a right to payment due or to become due, whether or not the right is conditioned on future developments, including but not limited to the following types of payments: (1) Wages due from the federal government that are not subject to withholding under an earnings withholding order. (2) Rents. (3) Commissions. (4) Royalties. (5) Payments due from a patent or copyright. (6) Insurance policy loan value. (b) The notice of the motion shall be served on the judgment debtor. Service shall be made personally or by mail. (c) Subject to subdivisions (d), (e), and (f), in determining whether to order an assignment or the amount of an assignment pursuant to subdivision (a), the court may take into consideration all relevant factors, including the following: (1) The reasonable requirements of a judgment debtor who is a natural person and of persons supported in whole or in part by the judgment debtor. (2) Payments the judgment debtor is required to make or that are deducted in satisfaction of other judgments and wage assignments, including earnings assignment orders for support. (3) The amount remaining due on the money judgment. (4) The amount being or to be received in satisfaction of the right to payment that may be assigned. (d) A right to payment may be assigned pursuant to this article only to the extent necessary to satisfy the money judgment. (e) When earnings or periodic payments pursuant to a pension or retirement plan are assigned pursuant to subdivision (a), the amount of the earnings or the periodic payments assigned shall not exceed the amount that may be withheld from a like amount of earnings under Chapter 5 (commencing with Section 706.010) (Wage Garnishment Law). (f) Where a specific amount of the payment or payments to be assigned is exempt by another statutory provision, the amount of the payment or payments to be assigned pursuant to subdivision (a) shall

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My Review of the relevant California Assignment Order statutes for use in a creditor's collection case. Use these for judgment debtors without regular income. Sort of a DIY garnishment. Very useful!

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Page 1: Assignment Order Statutes - California

CODE OF CIVIL PROCEDURE SECTION 708.510-708.560 

708.510. (a) Except as otherwise provided by law, upon applicationof the judgment creditor on noticed motion, the court may order thejudgment debtor to assign to the judgment creditor or to a receiverappointed pursuant to Article 7 (commencing with Section 708.610) allor part of a right to payment due or to become due, whether or notthe right is conditioned on future developments, including but notlimited to the following types of payments: (1) Wages due from the federal government that are not subject towithholding under an earnings withholding order. (2) Rents. (3) Commissions. (4) Royalties. (5) Payments due from a patent or copyright. (6) Insurance policy loan value. (b) The notice of the motion shall be served on the judgmentdebtor. Service shall be made personally or by mail. (c) Subject to subdivisions (d), (e), and (f), in determiningwhether to order an assignment or the amount of an assignmentpursuant to subdivision (a), the court may take into considerationall relevant factors, including the following: (1) The reasonable requirements of a judgment debtor who is anatural person and of persons supported in whole or in part by thejudgment debtor. (2) Payments the judgment debtor is required to make or that arededucted in satisfaction of other judgments and wage assignments,including earnings assignment orders for support. (3) The amount remaining due on the money judgment. (4) The amount being or to be received in satisfaction of theright to payment that may be assigned. (d) A right to payment may be assigned pursuant to this articleonly to the extent necessary to satisfy the money judgment. (e) When earnings or periodic payments pursuant to a pension orretirement plan are assigned pursuant to subdivision (a), the amountof the earnings or the periodic payments assigned shall not exceedthe amount that may be withheld from a like amount of earnings underChapter 5 (commencing with Section 706.010) (Wage Garnishment Law). (f) Where a specific amount of the payment or payments to beassigned is exempt by another statutory provision, the amount of thepayment or payments to be assigned pursuant to subdivision (a) shallnot exceed the amount by which the payment or payments exceed theexempt amount.

708.520. (a) When an application is made pursuant to Section708.510 or thereafter, the judgment creditor may apply to the courtfor an order restraining the judgment debtor from assigning orotherwise disposing of the right to payment that is sought to beassigned. The application shall be made on noticed motion if thecourt so directs or a court rule so requires. Otherwise, it may be

Page 2: Assignment Order Statutes - California

made ex parte. (b) The court may issue an order pursuant to this section upon ashowing of need for the order. The court, in its discretion, mayrequire the judgment creditor to provide an undertaking. (c) The court may modify or vacate the order at any time with orwithout a hearing on such terms as are just. (d) The order shall be personally served upon the judgment debtorand shall contain a notice to the judgment debtor that failure tocomply with the order may subject the judgment debtor to being heldin contempt of court.

708.530. (a) Except as provided in subdivision (b), the effect andpriority of an assignment ordered pursuant to this article isgoverned by Section 955.1 of the Civil Code. For the purpose ofpriority, an assignee of a right to payment pursuant to this articleshall be deemed to be a bona fide assignee for value under the termsof Section 955.1 of the Civil Code. (b) An assignment of the right to future rent ordered under thisarticle is recordable as an instrument affecting real property andthe priority of such an assignment is governed by Section 1214 of theCivil Code.

708.540. The rights of an obligor are not affected by an orderassigning the right to payment until notice of the order is receivedby the obligor. For the purpose of this section, "obligor" means theperson who is obligated to make payments to the judgment debtor orwho may become obligated to make payments to the judgment debtordepending upon future developments.

708.550. (a) The judgment debtor may claim that all or a portion ofthe right to payment is exempt from enforcement of a money judgmentby application to the court on noticed motion filed not later thanthree days before the date set for the hearing on the judgmentcreditor's application for an assignment order. The judgment debtorshall execute an affidavit in support of the application thatincludes all of the matters set forth in subdivision (b) of Section703.520. Failure of the judgment debtor to make a claim of exemptionis a waiver of the exemption. (b) The notice of the motion shall be personally served on thejudgment creditor not later than three days before the date set forthe hearing. (c) The court shall determine any claim of exemption made pursuantto this section at the hearing on issuance of the assignment order.

708.560. (a) Either the judgment creditor or the judgment debtormay apply to the court on noticed motion for an order to modify orset aside the assignment order. The notice of motion shall be servedon the other party. Service shall be made personally or by mail. (b) The court shall make an order modifying or setting aside theassignment order upon a showing that there has been a material change

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in circumstances since the time of the previous hearing on theassignment order. The court may order a reassignment of the right topayments as necessary. The order shall state whether and to whatextent it applies to payments already made.