2330-2336 Delinquent Payment Enforcement: Court Actions/Judgement Processing

2330. ENTRY OF JUDGMENT
At the conclusion of the hearing, if a decision is given in favor of the county, judgment is entered by the court (Code Civ. Proc. §116.860).

The judge may provide for payment immediately or at any time and upon such terms and conditions as he/she determines (Code Civ. Proc. §116.860).

2331. ABSTRACT OF JUDGMENT
If no payment is received, an abstract of judgment may be obtained from the court without charge (Code Civ. Proc. §116.610). Upon recordation of the abstract in any county (without charge), the judgment becomes a lien upon all real property owned in the county or subsequently acquired by the defendant (Code Civ. Proc. §674(a)). See M-2334 regarding the recordation of an abstract of judgment in other counties.

The lien continues for ten years from the entry of the judgment or until the lien is satisfied or otherwise discharged (Code Civ. Proc. §674(a)).

If justified, an action to renew the original judgment may be commenced within ten years (Code Civ. Proc. §337.5). When the new abstract of judgment is recorded, the lien attaches for another ten-year period.

NOTE: Do not confuse an abstract of judgment with the provisions for summary judgment. See M-2350 - M-2355.

2332. INTEREST ACCRUAL ON JUDGMENTS
Interest on judgments rendered by California courts accrues at the following rates:

On and before December 31, 1982 – 7 percent per annum on a daily basis until the judgment is paid.

January 1, 1983, through June 30, 1983 – 10 percent per annum on a daily basis until the judgment is satisfied or up to the date of a levy under a writ of execution.

On or after July 1, 1983 - 10 percent per annum on a daily basis until the judgment is satisfied or, in the case of a writ of execution, up to the date the proceeds of the sale or collection are actually received by the levying officer (Code Civ. Proc. §685.010).

NOTE: Interest on judgments accrues from the date of entry. If the judgment was entered before January 1, 1983, it accrues interest at the rate of 7 percent per annum until December 31, 1982; thereafter, the judgment accrues interest at the rate of 10 percent per annum until satisfied, as described above.

2333. ASSESSEE OUTSIDE COUNTY
After the judgment is obtained, an abstract of judgment must be recorded as soon as possible in any county in which the defendant has real property (form SCO 2-10).

From the date of the recording, the judgment or decree becomes a lien upon all the real property of the judgment debtor not exempt from execution and continues for ten years from that date (Code Civ. Proc. §674).

Actions for the recovery of taxes may be instituted in other states that permit such actions when the amount to be recovered is sufficient to justify the time, expense, and effort (Rev. & Tax. Code §31).

2334. EXECUTION UPON JUDGMENT BY MARSHAL OR SHERIFF
The marshal or the sheriff can assist in preparing documentation required to execute a judgment. The judgment may be carried into execution in any county of the state.

2335. EXAMINATION OF DEBTOR
The examination may be conducted in the courtroom, but it is usually done in a vacant jury or conference room. Questions that the defendant refuses to answer or considers unfair must be returned to the courtroom for a ruling by the judge. (Code Civ. Proc. §708.110 et seq.).

The information learned during this process is used for further legal action, as necessary. Ideally, a satisfactory payment arrangement can be made, eliminating the need for additional action. Remember that judgments can be executed for ten years (Rev. & Tax. Code §3105).

The Order of Examination must be served on the taxpayer in person. The request for service will be sent to the marshal or sheriff's civil division. Service must be made ten days prior to the date of examination, and proof of this service should be returned to the tax collector and the court before that date. If it is not, the tax collector should call the sheriff or marshal to verify service. If the defendant was not served in a timely fashion, a new court date must be set, and the process starts over again.

A debtor may be ordered to court for examination every 120 days. A special request may be filed with the court to shorten this time if it is felt that the debt will be jeopardized by waiting the required period of time. There is a 150-mile limit, outside of which a defendant may not be served. Also, few if any states recognize California liens or judgments, so filing outside the state may be a wasted effort.

If the defendant does not appear in court for the Order of Examination, the judge, in most cases, will issue a bench warrant for his/her arrest.

NOTE: The Order of Examination must be served by an officer of the court, i.e., sheriff, marshal or constable, or the judge will not issue a bench warrant.

The defendant must then post a bond (bail), cash or otherwise, to avoid being arrested and to ensure his/her appearance on the next examination date. At the next examination, the judge may be asked to exonerate the bail and have it applied to the bill. If this is acceptable to the court and the defendant, an order is made to accomplish this and no examination is necessary.

2336. SERVICEMEMBERS' CIVIL RELIEF ACT
Under this Act, no proceeding or action may be commenced to collect unsecured taxes except upon leave of the court, granted upon application of the tax collector. For the provisions of this Act affecting tax collections, refer to United States Code, Title 50, App., sections 501 through 585 (see especially §560).

Any tax or assessment that is not paid when due shall bear interest at the rate of six percent per annum until paid, and no other penalty or interest shall be incurred by reason of such nonpayment.

An affidavit or declaration by the taxpayer, indicating nonmilitary status, must be filed with the court before a judgment by default will be entered.