Miscellaneous Creditors’ RemediesAssignment Order

Section § 708.510

Explanation

This section allows a court to order someone who owes money (the judgment debtor) to assign certain types of future payments to the person they owe (the judgment creditor) or to a receiver. These payments can include things like wages from the federal government, rents, commissions, royalties, patent or copyright payments, or insurance loans. The court considers factors such as the debtor's basic needs, other financial obligations, and the amount still owed when deciding on the assignment. Any assignment of wages or retirement payments cannot exceed limits set by wage garnishment laws, and certain exempt amounts can't be assigned.

(a)CA Civil Procedure Code § 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)CA Civil Procedure Code § 708.510(a)(1) Wages due from the federal government that are not subject to withholding under an earnings withholding order.
(2)CA Civil Procedure Code § 708.510(a)(2) Rents.
(3)CA Civil Procedure Code § 708.510(a)(3) Commissions.
(4)CA Civil Procedure Code § 708.510(a)(4) Royalties.
(5)CA Civil Procedure Code § 708.510(a)(5) Payments due from a patent or copyright.
(6)CA Civil Procedure Code § 708.510(a)(6) Insurance policy loan value.
(b)CA Civil Procedure Code § 708.510(b) The notice of the motion shall be served on the judgment debtor. Service shall be made personally or by mail.
(c)CA Civil Procedure Code § 708.510(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)CA Civil Procedure Code § 708.510(c)(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)CA Civil Procedure Code § 708.510(c)(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)CA Civil Procedure Code § 708.510(c)(3) The amount remaining due on the money judgment.
(4)CA Civil Procedure Code § 708.510(c)(4) The amount being or to be received in satisfaction of the right to payment that may be assigned.
(d)CA Civil Procedure Code § 708.510(d) A right to payment may be assigned pursuant to this article only to the extent necessary to satisfy the money judgment.
(e)CA Civil Procedure Code § 708.510(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)CA Civil Procedure Code § 708.510(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 not exceed the amount by which the payment or payments exceed the exempt amount.
judgment creditor judgment debtor assignment of payments ...

Section § 708.520

Explanation

This law allows a person owed money (judgment creditor) to ask the court to stop the person who owes the money (judgment debtor) from selling or transferring their rights to receive payment. This request can be made officially if the court rules require it, or quickly and informally in some situations. The court can issue this order if there is a need for it and might require the creditor to provide a security guarantee. The court can change or cancel the order anytime, with or without a hearing. The person who owes money must be personally informed of the order, and if they don't follow it, they could be punished by the court.

(a)CA Civil Procedure Code § 708.520(a)When an application is made pursuant to Section 708.510 or thereafter, the judgment creditor may apply to the court for an order restraining the judgment debtor from assigning or otherwise disposing of the right to payment that is sought to be assigned. The application shall be made on noticed motion if the court so directs or a court rule so requires. Otherwise, it may be made ex parte.
(b)CA Civil Procedure Code § 708.520(b) The court may issue an order pursuant to this section upon a showing of need for the order. The court, in its discretion, may require the judgment creditor to provide an undertaking.
(c)CA Civil Procedure Code § 708.520(c) The court may modify or vacate the order at any time with or without a hearing on such terms as are just.
(d)CA Civil Procedure Code § 708.520(d) The order shall be personally served upon the judgment debtor and shall contain a notice to the judgment debtor that failure to comply with the order may subject the judgment debtor to being held in contempt of court.
judgment creditor judgment debtor restraining order ...

Section § 708.530

Explanation

This law explains how the priority and effect of assigning rights to payment are determined. Generally, such assignments follow the rules in Section 955.1 of the Civil Code, considering the assignee as a legitimate one for value. However, if the assignment involves future rent payments, it can be recorded like changes to real estate ownership and follows the rules in Section 1214 of the Civil Code.

(a)CA Civil Procedure Code § 708.530(a) Except as provided in subdivision (b), the effect and priority of an assignment ordered pursuant to this article is governed by Section 955.1 of the Civil Code. For the purpose of priority, an assignee of a right to payment pursuant to this article shall be deemed to be a bona fide assignee for value under the terms of Section 955.1 of the Civil Code.
(b)CA Civil Procedure Code § 708.530(b) An assignment of the right to future rent ordered under this article is recordable as an instrument affecting real property and the priority of such an assignment is governed by Section 1214 of the Civil Code.
assignment of rights priority of assignment bona fide assignee ...

Section § 708.540

Explanation

This law says that if someone is ordered to pay money to another person (the "obligor"), they don't have to follow that order until they officially receive notice of it. Basically, the payment responsibility only kicks in once they've been informed about it.

The rights of an obligor are not affected by an order assigning the right to payment until notice of the order is received by the obligor. For the purpose of this section, “obligor” means the person who is obligated to make payments to the judgment debtor or who may become obligated to make payments to the judgment debtor depending upon future developments.
obligor payment responsibility judgment debtor ...

Section § 708.550

Explanation

If someone owes you money (a judgment debtor), they can ask the court to declare some or all of a payment protected from being taken to satisfy a debt. They need to file this request with the court, along with a detailed statement, at least three days before a hearing where the creditor is trying to obtain an order to assign the debt. If the debtor misses this chance, they lose the right to claim the protection. Also, the debtor must make sure the creditor knows about this motion, doing so three days before the hearing. The court will decide at the hearing whether the payment is protected or not.

(a)CA Civil Procedure Code § 708.550(a) The judgment debtor may claim that all or a portion of the right to payment is exempt from enforcement of a money judgment by application to the court on noticed motion filed not later than three days before the date set for the hearing on the judgment creditor’s application for an assignment order. The judgment debtor shall execute an affidavit in support of the application that includes all of the matters set forth in subdivision (b) of Section 703.520. Failure of the judgment debtor to make a claim of exemption is a waiver of the exemption.
(b)CA Civil Procedure Code § 708.550(b) The notice of the motion shall be personally served on the judgment creditor not later than three days before the date set for the hearing.
(c)CA Civil Procedure Code § 708.550(c) The court shall determine any claim of exemption made pursuant to this section at the hearing on issuance of the assignment order.
judgment debtor exemption claim enforcement ...

Section § 708.560

Explanation

If you owe someone money from a court judgment or are trying to collect money owed to you, you or the other party can ask the court to change or cancel an order about how payments are assigned. This request must be officially shared with the other person involved. The court can change this payment order if there has been a significant change in the situation since the last decision. The court can decide if and how this change affects any payments already made.

(a)CA Civil Procedure Code § 708.560(a) Either the judgment creditor or the judgment debtor may apply to the court on noticed motion for an order to modify or set aside the assignment order. The notice of motion shall be served on the other party. Service shall be made personally or by mail.
(b)CA Civil Procedure Code § 708.560(b) The court shall make an order modifying or setting aside the assignment order upon a showing that there has been a material change in circumstances since the time of the previous hearing on the assignment order. The court may order a reassignment of the right to payments as necessary. The order shall state whether and to what extent it applies to payments already made.
judgment creditor judgment debtor assignment order ...