Judgment debtor fraudulently transferring assetes? Don’t file a new action, just levy the asset
Tim KowalApril 5, 2023
File away these two “gold nuggets” for next time you enforce a judgment, courtesy of judgment-enforcement specialist Joseph Chora:
If the debtor is transferring assets to third parties, sure, you could file a fraudulent-transfer complaint. But why? You can simply levy on the transferred asset. Not only is this faster and cheaper, but it puts the burden of proof on the debtor and transferee to prove the transfer was valid.
With a little research, attorneys can handle most aspects of judgment enforcement, but consider farming out these two tasks:(1) asset research—if you don’t know what you’re looking for, you’re likely to miss it.(2) collecting on real property—there are too many technical requirements likely to wrongfoot you if it’s your first rodeo.
Tim Kowal is an appellate specialist certified by the California State Bar Board of Legal Specialization. Tim helps trial attorneys and clients win their cases and avoid error on appeal. He co-hosts the Cal. Appellate Law Podcast at CALpodcast.com, and publishes summaries of cases and appellate tips for trial attorneys. Contact Tim at [email protected] or (949) 676-9989.
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