Third-party Claims and Related ProceduresThird-party Claims of Ownership and Possession
Section § 720.110
This law allows a person who claims to own or have a right to possess property to file a claim if they believe their interest in the property is stronger than a creditor's claim. This applies when real or personal property has been seized by legal orders like a writ of attachment or execution.
Section § 720.120
If you want to claim a right to property that has been seized to pay off a debt, you need to file a third-party claim with the officer managing the seizure. You must do this after the property is taken but before it's sold, handed over to the creditor, or the money from it is given to the creditor.
Section § 720.130
This law requires that when making a third-party claim, you must fill it out under oath and include specific details: your name and address for receiving mail, a description of the property and your interest in it, the facts supporting your claim, and an estimate of its value. Additionally, you need to attach any documents backing up your claim, or the court might choose not to consider them when reviewing your case.
Section § 720.140
If someone else claims rights to property that a creditor is trying to seize, a levying officer has 5 days to notify the creditor by sending them the third party's claim and whether that person has provided a security to release the property. If the third party has given security, the creditor must object within 10 days if they don't agree. If no security was given by the third party, the creditor must provide their own security within the same timeframe. The levying officer also needs to inform the debtor with the same documents within the same 5-day period. Even if there are issues with the documents, the levying officer can still deliver them.
Section § 720.150
This law says that when someone other than the debtor (called a third party) claims an interest in property that has been seized to pay off a debt, the officer handling the seizure cannot sell the property, give it to the creditor, or pay any collected money to the creditor unless another law specifically allows it. Also, if the third party doesn't officially claim their interest, their claim isn't automatically voided.
Section § 720.160
This law outlines what a creditor needs to do if they want to ensure that property held by someone else is seized to satisfy a debt. If the creditor provides a financial guarantee (called an 'undertaking'), the levying officer (like a sheriff) can take the property unless the third party holding it also provides a financial guarantee to stop that from happening. This guarantee must be favoring the third party and cover any potential losses they might face if it's later decided they rightfully owned or possessed the property. Usually, the guarantee amount is $10,000 or double the debt amount, whichever is less. Public entities have a simpler process and only need to file a notice instead of a financial guarantee.
Section § 720.170
This law talks about what happens to property when there's a dispute over who owns it, due to a debt collection. If someone else claims the property and doesn't do what's needed to release it, the debt collector has a chance to do so instead. If the debt collector doesn't act in time, the officer in charge can give the property back, unless there's another reason to hold onto it. If the property is personal belongings taken as part of the debt collection and the original owner doesn't claim them within 10 days, the property may be given to someone else who claims it. Even after the property is released, the actual ownership can still be disputed in court.