Few things are more frustrating than businesses that do not pay their debts. Those unwilling to pay can put your own organization at risk, leaving you no choice but to initiate legal action. Plaintiffs considering a lawsuit can also file a prejudgment writ of attachment with the court, asking it to place an attachment on the defendant’s non-exempt property (which must be located in California). Business debtors’ non-exempt property includes virtually all property held by the business, including inventory. The prejudgment debtors examination is also an effective approach for determining the debtor’s financial viability.
The court then directs the sheriff to show up at the place of business and serves the debtor with the notice of attachment. The sheriff may also take the title to the defendant’s property that the writ is to be attached.
Why this is useful
Debtors unwilling to pay money owed will often attempt to protect assets. The attachment ensures that the property is not transferred to another entity before paying the debt, but it may be sold or transferred to satisfy the judgment against the debtor. If the debtor violates the court’s order, their actions can result in a fine, a contempt citation and imprisonment. The writ also informs other third parties that the attached assets cannot be transferred.
Attorneys often get results
Legal options will vary on a case-by-case basis. So, working with an attorney who handles the collection of outstanding debts here in California is often essential. They can handle the details of filing the prejudgment writ of attachment to ensure better that the plaintiff meets the statutory requirements and deadlines. When used properly, these legal tools can get results from even the most obstinate debtor.