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California Collections Questions & Answers
3 Answers | Asked in Collections for California on
Q: Is there a statute of limitations for promissory notes and personal guarantees for California residents?

I have a promissory Note w/ Personal Guarantee for $270,000. The note was signed in 2008

Richard L. Grant
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Richard L. Grant
answered on Mar 6, 2024

Generally, Promissory Note with Personal Guarantee in writing has s Statute of limitations OF 4 YEARS FROM DATE OF Breach/Default of the Note. Usually, the Breach is the date when the note was defaulted, the date when a payment was not made or some term in the note was not performed.

Very...
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3 Answers | Asked in Collections for California on
Q: Is there a statute of limitations for promissory notes and personal guarantees for California residents?

I have a promissory Note w/ Personal Guarantee for $270,000. The note was signed in 2008

James L. Arrasmith
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answered on Mar 6, 2024

In California, the statute of limitations for promissory notes and personal guarantees depends on whether the note is written or oral.

1. Written promissory notes and guarantees:

The statute of limitations for written contracts, including promissory notes and personal guarantees, is...
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2 Answers | Asked in Collections for California on
Q: Dear attorney, would you tell me what form is for civil cases Request for Court Order and Answer? I only found SC-105.

SC-105 is for small claim. I want to add the sole owner of a LLC to the judgment as debtor.

James L. Arrasmith
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answered on Feb 24, 2024

In California, if you're looking to add a debtor to an existing judgment in a civil case, specifically aiming to include the sole owner of an LLC, you would not use form SC-105, as that form is indeed designated for small claims court. For civil cases, the process usually involves filing a... View More

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1 Answer | Asked in Collections and Banking for California on
Q: CA. Wife and father had joint acct. He passed, and the account got levied for debt he owed. Is this exempt, her acct now

California. Wife and her father had a joint account that they both deposited to and utilized. He passed last June, and we just received a notice of levy on the account. The bank is temporarily holding the money for 10 days. It is my understanding that after he passed, the account is now hers, and... View More

James L. Arrasmith
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answered on Feb 21, 2024

Yes, your understanding is correct. Since the bank account was jointly held between your wife and her now deceased father, once he passed away the account became your wife's individual account by operation of law. Here are the key reasons why the account levy is invalid:

• Under...
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3 Answers | Asked in Estate Planning, Real Estate Law, Collections and Landlord - Tenant for California on
Q: Homestead for California exemption questions.

Hi. So, Under the new 2021 Cali law, $300,000–$600,000 of a home’s equity cannot be touched by judgment creditors.

Does this also apply to properties that the homeowner does not live in? What other resources do lawyers have collect a judgement.

Leon Bayer
Leon Bayer
answered on Feb 18, 2024

It applies only to property occupied by you, or your spouse, or a very close family member. See the actual statute, below, for the definitions,... View More

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3 Answers | Asked in Estate Planning, Real Estate Law, Collections and Landlord - Tenant for California on
Q: Homestead for California exemption questions.

Hi. So, Under the new 2021 Cali law, $300,000–$600,000 of a home’s equity cannot be touched by judgment creditors.

Does this also apply to properties that the homeowner does not live in? What other resources do lawyers have collect a judgement.

Joel Gary Selik
Joel Gary Selik
answered on Feb 18, 2024

It applies to the principal dwelling. See California Civil Code §§ 704.710 through 704.850.

There are many tools and techniques to collect judgments, including real property lien, bank levies, charging orders, wage garnishment, etc.

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3 Answers | Asked in Estate Planning, Real Estate Law, Collections and Landlord - Tenant for California on
Q: Homestead for California exemption questions.

Hi. So, Under the new 2021 Cali law, $300,000–$600,000 of a home’s equity cannot be touched by judgment creditors.

Does this also apply to properties that the homeowner does not live in? What other resources do lawyers have collect a judgement.

James L. Arrasmith
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answered on Feb 21, 2024

It's important for both creditors and debtors to understand their rights and obligations under California law. Debtors should be aware of the protections available to them, including the homestead exemption for their primary residence, while creditors should explore all legal avenues for... View More

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3 Answers | Asked in Consumer Law, Foreclosure, Real Estate Law and Collections for California on
Q: What do I need to do next? Received Notice of Trustee's Sale on a property that we have a lien against.

Non payment of purchase of building materials totaling $20,000.

Is there a way to recoup this loss?

Leon Bayer
Leon Bayer
answered on Feb 15, 2024

Yes, and no. Assuming your lien is validly perfected, you can advance money to the senior lien(s) to reinstate it, which will stop them from foreclosing this time around, and then initiate your own foreclosure process. There is so much to consider before you do anything like that, without much time... View More

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3 Answers | Asked in Consumer Law, Foreclosure, Real Estate Law and Collections for California on
Q: What do I need to do next? Received Notice of Trustee's Sale on a property that we have a lien against.

Non payment of purchase of building materials totaling $20,000.

Is there a way to recoup this loss?

Anthony M. Avery
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answered on Feb 15, 2024

You are probably junior to the foreclosing secured debt. You can bid at the sale to protect your interest. But a sale without a surplus means your lien against the land is extinguished although the debt against the individual is still existent. If there is a surplus, trustees are notorious... View More

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3 Answers | Asked in Consumer Law, Foreclosure, Real Estate Law and Collections for California on
Q: What do I need to do next? Received Notice of Trustee's Sale on a property that we have a lien against.

Non payment of purchase of building materials totaling $20,000.

Is there a way to recoup this loss?

James L. Arrasmith
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answered on Feb 21, 2024

First, review the Notice of Trustee's Sale carefully to understand the timeline and process involved in the sale of the property. Determine the date of the sale and any deadlines for action.

Next, assess your options for recouping the loss of $20,000 in unpaid building materials....
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3 Answers | Asked in Collections for California on
Q: My employer received an EWO from a levying officer in February 2024. The notice says it's for a debt collection filed

in Sept 2019. I have never received anything in the meantime. I have no idea what this is for. It's never shown on my credit report, nothing received in the mail, no phone calls. Is it legal to be able to garnish my wages now?

Leon Bayer
Leon Bayer
answered on Feb 14, 2024

I'm sorry this has happened to you. Debts get bought and sold all the time, so the original creditor's name might not be on the ewo. You can get a copy of the relevant legal documents from the court, particularly the proof of service and the complaint. The complaint will tell you who the... View More

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3 Answers | Asked in Collections for California on
Q: My employer received an EWO from a levying officer in February 2024. The notice says it's for a debt collection filed

in Sept 2019. I have never received anything in the meantime. I have no idea what this is for. It's never shown on my credit report, nothing received in the mail, no phone calls. Is it legal to be able to garnish my wages now?

James L. Arrasmith
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answered on Feb 21, 2024

In California, once a creditor obtains a judgment against a debtor, that creditor can seek to enforce the judgment through various means, including wage garnishment. An Earnings Withholding Order (EWO) is a legal document sent to an employer to withhold a portion of an employee's earnings for... View More

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3 Answers | Asked in Consumer Law, Civil Litigation and Collections for California on
Q: Just found out I was sued 10 years ago for a debt I don't recognize ! What should I do?
Scott Richard Kaufman
Scott Richard Kaufman
answered on Feb 9, 2024

Hard to say for sure.

NOT everyone recalls all of their OLD debts?

Regardless, I will assume they WON the case?

IF it is over 10 years ago, any judgment is unenforceable in CA,

UNLESS they renewed it for another 10 yrs? Maybe that is how

you found out? You...
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3 Answers | Asked in Consumer Law, Civil Litigation and Collections for California on
Q: Just found out I was sued 10 years ago for a debt I don't recognize ! What should I do?
James L. Arrasmith
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answered on Feb 21, 2024

Here are the steps I recommend if you were sued in California for debt 10 years ago but do not recognize the debt:

1. Pull a copy of your full credit report and look for any court judgments. You're entitled to three free credit reports per year. Check for anything suspicious or any...
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3 Answers | Asked in Banking and Collections for California on
Q: In California, can I be served debt collection at my old address if people who live there(my old roommates)still know me
Leon Bayer
Leon Bayer
answered on Feb 9, 2024

If the plaintiff claims that you were served, you would have to file a motion to quash service by proving that you don't live there. Keep in mind that the goal of the law is to give a person notice. And you obviously know about the lawsuit. A successful motion to quash does not eliminate the... View More

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2 Answers | Asked in Consumer Law and Collections for California on
Q: How many times can a lawyer call you on a secured loan if you only made a half a payment this month
Leon Bayer
Leon Bayer
answered on Feb 7, 2024

Would you like to have the collateral repossessed? Seriously.

I contend that you are thinking about this all wrong. If the caller is the original creditor, I believe there is no limit. Regardless, you don't have to talk to them. In fact, you can hang up on them.

But you should...
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2 Answers | Asked in Consumer Law and Collections for California on
Q: How many times can a lawyer call you on a secured loan if you only made a half a payment this month
James L. Arrasmith
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answered on Feb 22, 2024

In California, there are specific laws and regulations that govern how often a lawyer or a creditor can contact you regarding a debt, including a secured loan. The frequency of these calls is not explicitly limited to a specific number per day or week, but the law does protect consumers from what... View More

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1 Answer | Asked in Family Law, Divorce and Collections for California on
Q: What costs can be in CA After Judgment form MC-012? CA Legal fees to domesticate in FL? FL legal fees to pursue debtor?

I have a CA Family Law Court Order that ex-spouse owes me a large sum of money. He has made no payment on the debt. He resides in Florida. Can my CA legal fees to turn the Order into a Judgment in order to domesticate it in Florida be included in MC-0112 memorandum of costs?

Can Florida... View More

James L. Arrasmith
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answered on Feb 3, 2024

Under California law, when seeking to turn a Family Law Court Order into a Judgment (MC-012), certain costs can be included in the MC-012 memorandum of costs. These costs typically encompass fees related to the court process, such as filing fees, service of process fees, and court reporter fees,... View More

2 Answers | Asked in Family Law, Divorce, Civil Litigation and Collections for California on
Q: Does "(ccp:685.010-685.110) 685.010. (a) Interest accrues at 10 percent per annum" apply to Family Law Orders?

After divorce, I filed an RFO resulting in a Court Order that ex spouse pay me $200K+.

For purposes of calculating rate of interest on an unsatisfied debt, does the same rate apply to Orders as for Judgments as delineated in CA Codes "(ccp:685.010-685.110) 685.010. (a) Interest... View More

James L. Arrasmith
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answered on Feb 3, 2024

In California, the interest on judgments, including those from family law orders, generally accrues at the statutory rate specified in the California Code of Civil Procedure (CCP) Section 685.010(a), which is 10 percent per annum. This applies to the principal amount of a money judgment that... View More

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1 Answer | Asked in Collections and Consumer Law for California on
Q: Collections agency closed an inquiry for bad debt charge off and didn't contact myself so I contacted them.

Is the reason they didn't contact me cause they aren't reporting for 6 months? That's what the lady to me on the phone. Also that I need to pay half down of the charged account before end of feb

James L. Arrasmith
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answered on Jan 31, 2024

In California, a collections agency is not required by law to contact you before reporting a debt to the credit bureaus. The six-month period mentioned could be their internal policy or a specific arrangement related to your case. It's important to note that while they may choose not to report... View More

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