Section § 720.110

Explanation

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.

A third person claiming ownership or the right to possession of property may make a third-party claim under this chapter in any of the following cases if the interest claimed is superior to the creditor’s lien on the property:
(a)CA Civil Procedure Code § 720.110(a) Where real property has been levied upon under a writ of attachment or a writ of execution.
(b)CA Civil Procedure Code § 720.110(b) Where personal property has been levied upon under a writ of attachment, a writ of execution, a prejudgment or postjudgment writ of possession, or a writ of sale.

Section § 720.120

Explanation

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.

A person making a third-party claim under this chapter shall file the claim with the levying officer, together with two copies of the claim, after levy on the property but before the levying officer does any of the following:
(a)CA Civil Procedure Code § 720.120(a) Sells the property.
(b)CA Civil Procedure Code § 720.120(b) Delivers possession of the property to the creditor.
(c)CA Civil Procedure Code § 720.120(c) Pays proceeds of collection to the creditor.

Section § 720.130

Explanation

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.

(a)CA Civil Procedure Code § 720.130(a) The third-party claim shall be executed under oath and shall contain all of the following:
(1)CA Civil Procedure Code § 720.130(a)(1) The name of the third person and an address in this state where service by mail may be made on the third person.
(2)CA Civil Procedure Code § 720.130(a)(2) A description of the property in which an interest is claimed.
(3)CA Civil Procedure Code § 720.130(a)(3) A description of the interest claimed, including a statement of the facts upon which the claim is based.
(4)CA Civil Procedure Code § 720.130(a)(4) An estimate of the market value of the interest claimed.
(b)CA Civil Procedure Code § 720.130(b) A copy of any writing upon which the claim is based shall be attached to the third-party claim. At a hearing on the third-party claim, the court in its discretion may exclude from evidence any writing a copy of which was not attached to the third-party claim.

Section § 720.140

Explanation

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.

(a)CA Civil Procedure Code § 720.140(a) Not later than five days after the third-party claim is filed with the levying officer, the levying officer shall serve the following personally or by mail on the creditor:
(1)CA Civil Procedure Code § 720.140(a)(1) A copy of the third-party claim.
(2)CA Civil Procedure Code § 720.140(a)(2) A statement whether the third person has filed an undertaking to release the property pursuant to Chapter 6 (commencing with Section 720.610).
(3)CA Civil Procedure Code § 720.140(a)(3) If the third person has filed an undertaking to release the property, a notice that the property will be released unless, within the time allowed as specified in the notice, the creditor objects to the undertaking.
(4)CA Civil Procedure Code § 720.140(a)(4) If the third person has not filed an undertaking to release the property, a notice that the property will be released unless, within the time allowed as specified in the notice, the creditor files with the levying officer an undertaking that satisfies the requirements of Section 720.160.
(b)CA Civil Procedure Code § 720.140(b) The time allowed the creditor for objecting to the third person’s undertaking to release the property or for filing an undertaking is 10 days after service under subdivision (a).
(c)CA Civil Procedure Code § 720.140(c) Within the time allowed for service on the creditor under subdivision (a), the levying officer shall serve a copy of the papers specified in subdivision (a) on the debtor. Service shall be made personally or by mail.
(d)CA Civil Procedure Code § 720.140(d) The levying officer may serve the copy of the third-party claim and the statement and notice pursuant to this section notwithstanding any defect, informality, or insufficiency of the claim.

Section § 720.150

Explanation

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.

(a)CA Civil Procedure Code § 720.150(a) Except as otherwise provided by statute, if a third-party claim is timely filed, the levying officer may not do any of the following with respect to the property in which an interest is claimed:
(1)CA Civil Procedure Code § 720.150(a)(1) Sell the property.
(2)CA Civil Procedure Code § 720.150(a)(2) Deliver possession of the property to the creditor.
(3)CA Civil Procedure Code § 720.150(a)(3) Pay proceeds of collection to the creditor.
(b)CA Civil Procedure Code § 720.150(b) The interest of the third person in the property levied upon is not affected by the third person’s failure to file a third-party claim under this chapter.

Section § 720.160

Explanation

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.

(a)CA Civil Procedure Code § 720.160(a) If the creditor files with the levying officer an undertaking that satisfies the requirements of this section within the time allowed under subdivision (b) of Section 720.140:
(1)CA Civil Procedure Code § 720.160(a)(1) The levying officer shall execute the writ in the manner provided by law unless the third person files an undertaking to release the property pursuant to Chapter 6 (commencing with Section 720.610).
(2)CA Civil Procedure Code § 720.160(a)(2) After sale, payment, or delivery of the property pursuant to the writ, the property is free of all claims of the third person for which the creditor has given the undertaking.
(b)CA Civil Procedure Code § 720.160(b) Subject to Sections 720.770 and 996.010, unless the creditor elects to file an undertaking in a larger amount, the amount of the undertaking filed by the creditor under this section shall be in the amount of ten thousand dollars ($10,000), or twice the amount of the execution lien as of the date of levy or other enforcement lien as of the date it was created, whichever is the lesser amount.
(c)CA Civil Procedure Code § 720.160(c) An undertaking given by the creditor under this chapter shall:
(1)CA Civil Procedure Code § 720.160(c)(1) Be made in favor of the third person.
(2)CA Civil Procedure Code § 720.160(c)(2) Indemnify the third person against any loss, liability, damages, costs, and attorney’s fees, incurred by reason of the enforcement proceedings.
(3)CA Civil Procedure Code § 720.160(c)(3) Be conditioned on a final judgment that the third person owns or has the right of possession of the property.
(d)CA Civil Procedure Code § 720.160(d) If the creditor is a public entity exempt from giving an undertaking, the public entity shall, in lieu of filing the undertaking, file with the levying officer a notice stating that the public entity opposes the claim of the third person. When so filed, the notice is deemed to satisfy the requirement of this section that an undertaking be filed.

Section § 720.170

Explanation

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.

(a)CA Civil Procedure Code § 720.170(a) In a case where the third person has not filed with the levying officer an undertaking to release the property pursuant to Chapter 6 (commencing with Section 720.610), if the creditor does not within the time allowed under subdivision (b) of Section 720.140 file with the levying officer an undertaking (or file a notice if the creditor is a public entity) that satisfies the requirements of Section 720.160, the levying officer shall release the property unless it is to be held under another lien or unless otherwise ordered by the court.
(b)CA Civil Procedure Code § 720.170(b) Except as otherwise provided in this section, release is governed by Section 699.060.
(c)CA Civil Procedure Code § 720.170(c) If personal property that has been taken into custody is to be released to the debtor pursuant to Section 699.060 and the debtor has not claimed the property within 10 days after notice was served pursuant to Section 699.060, the levying officer shall release the property to the third person making the claim.
(d)CA Civil Procedure Code § 720.170(d) A hearing may be had on the third-party claim pursuant to Chapter 4 (commencing with Section 720.310) notwithstanding the release of the property pursuant to this section.