Many Los Angeles business owners find themselves forced into litigation in order to enforce their legal rights as creditors. There are many legal tools available to enforce these rights: liens, levies, garnishments, and charging orders are just a few of many examples. These and other tools can be used to allow a creditor access to a debtor’s assets in order to satisfy debts that have been recognized by a court. An experienced Los Angeles corporate attorney can help you determine which tools will best enforce your company’s legal rights against its debtors.
A writ of attachment is a particular tool which is used to protect specific assets from being disposed of before a judgment is reached. The writ of attachment is a legal order issued by a court to a law enforcement agent. A writ of attachment is typically requested soon after a case is filed (in order to freeze the defendant’s assets while the case is pending). A writ of execution is issued at the end of a case after the judgment is reached, in order to enforce a judgment debt that has been awarded to the creditor. The California Code of Civil Procedure establishes the procedures for obtaining a writ of attachment. Section 487.010 specifies the property which is subject to a writ of attachment, including interests in real property, accounts receivable, equipment, farm products, inventory, final money judgments, money on the premises of the debtor’s business, negotiable documents of title, instruments; securities, and natural resources (such as minerals, oils, or gases) on the debtor’s property.
How a Writ of Attachment Can Help Your Business
A writ of attachment is helpful when the defendant has a specific asset which will likely be able to satisfy a judgment debt at the end of the case. It is especially important to obtain a writ of attachment when an asset is easily disposed of (such as cash, jewelry, or other tangible goods which are highly mobile). At the end of a lawsuit, a writ of execution can then be used to target a specific asset in order to satisfy the judgment. Writs are helpful in this context when the asset is sufficient to satisfy the debt. If it is not, the creditor is unlikely to realize a return on investment for the time and expense associated with obtaining the writ.
A writ of attachment is not the appropriate tool for every debt scenario. It is important for creditors to find the legal tools which will best enable them to access a debtor’s assets.
The Right Representation For Your Creditor’s Rights
Protecting the financial interests of creditors is a complicated task with many possible solutions. The skilled corporate attorneys at Structure Law Group, LLP have extensive experience in enforcing creditors’ rights for businesses and will work with your business to access the tools which are right for you. Call (408) 441-7500 today, or email slgadmin@structurelaw.com to schedule your consultation with an experienced Los Angeles corporate attorney. We fight hard to protect your financial interests.