An Assignment Order Can Help You Collect The Money You Are Owed
- Rent
- Commissions from real estate or other sales
- Royalties and payments made for patent rights
- Dividends, interest or residuals
- Payments for work performed as an independent contractor
- Bonuses
- Tax refunds
- Legal judgments
- Other accounts receivable
What Is An Assignment Order?
An assignment order redirects your debtor’s right to payment to you by placing a lien on contingent payments — like rent and commissions. If and when payments are made, the payers must pay you — not your debtor. If they fail to do so, they will become indebted to you, on the hook for the money you are owed.
Integrating Assignment Orders With Other Judgment Enforcement Strategies
Assignment orders can be a powerful tool. They can allow creditors to intercept third-party payments due to a debtor, such as business earnings, dividends, or other receivables. Assignment orders can significantly enhance debt recovery efforts when integrated with other enforcement methods, such as wage garnishment, bank levies, and liens. They can do so by tapping multiple revenue streams to satisfy the debt.
For instance, while a wage garnishment targets a debtor’s salary, an assignment order can simultaneously target other non-wage income, maximizing the potential for debt recovery. By employing a multi-pronged approach, creditors increase their chances of recovering the full amount owed.
Answers To Assignment Order FAQs
If you have questions about utilizing assignment orders in your debt collection efforts, review these frequently asked questions about them we hear from our clients:
What is the key difference between an assignment order and a wage garnishment in California?
The main difference lies in the way they target income. Wage garnishment targets a debtor’s wages or salary from employment. Garnishment can allow creditors to collect a portion directly from the debtor’s paycheck. An assignment order targets non-wage income, such as business earnings, rents, royalties or dividends due to the debtor from third parties. The broader reach of an assignment order makes it particularly useful when a debtor has significant income sources beyond a regular paycheck.
When would I use an assignment order instead of a wage garnishment?
Creditors use assignment orders instead of wage garnishment when the debtor’s primary income sources are non-wage earnings. For example, if a debtor receives income from business profits, rental properties, or investment dividends, an assignment order would be the appropriate tool to intercept these payments. Additionally, assignment orders are utilized when wage garnishment has already been exhausted. It can also be used when the debtor is self-employed, making traditional wage garnishment ineffective.
What happens if the payer fails to comply with an assignment order?
If this happens, creditors can seek enforcement through the court. This may involve a contempt lawsuit against the payer for failing to adhere to the court order. A court can impose penalties, like fines or other sanctions, to compel compliance. The payer must understand that non-compliance with a court order can result in significant legal consequences.
How do assignment orders function in the context of California debt collection law?
In California, assignment orders function as a means for creditors to intercept and collect non-wage income from third parties due to the debtor. Once a creditor obtains a court-issued assignment order, the payer must redirect the specified payments to the creditor instead of the debtor. This legal mechanism ensures creditors can access funds owed to the debtor that may not be reachable through other enforcement methods.
Are You Struggling To Collect A Debt? You’ve Come To The Right Place.
Collecting on a judgment isn’t easy and writing a threatening letter or making a phone call won’t do the trick. You need a team of skilled professionals who know how to apply the right kind of pressure. Joshua P. Friedman & Associates, Inc., is that team.
Attorney Joshua Friedman pursues every available avenue of payment until his clients get what they are owed. He can help you. Call 310-278-8600 or contact us online to get started. Located in Los Angeles, lawyer Friedman represents individuals and businesses throughout the region.