Orange County Business Law Blog

In California, creditors can usually look to a non-debtor spouse’s assets to collect on a judgment.  This often includes the wages of the non-debtor spouse.  Since wages are generally considered community property, the non-debtor spouse’s earnings are typically subject to garnishment. The Process:  Unlike garnishing the debtor’s wages, a court order is required before garnishing the spouse’s wages (see CCP § 706.109).  The creditor must file a motion and properly serve it on the judgment debtor and the non-debtor spouse.  The motion should explain why the spouse’s wages are community property.  ...

In July 2015, the Uniform Voidable Transactions Act was signed into California law.  This law has implications for both debtors and creditors, as it modifies and replaces the former Uniform Fraudulent Transfer Act. Collecting debt in California can involve pursuing fraudulent transfer claims.  Debtors often transfer away their assets in the hopes of preventing levy.  Creditors should assert fraudulent transfer claims against both debtors and the recipients of the fraudulent transfers. The Uniform Voidable Transactions Act: (1) shifts the burden of proof in certain aspects of fraudulent transfer claims, and (2) alters certain definitions under the Act.  For ...