The debtor won't talk? Go around them. California law lets you drag their employer, bank, tenants, and anyone else holding their money into court to answer your questions.
A third-party examination under CCP § 708.120 lets you examine anyone who has property belonging to the judgment debtor, or who owes money to the judgment debtor. You don't need the debtor's cooperation - you go directly to the source.
This is extraordinarily powerful. The debtor can lie, hide, and evade. But their employer knows exactly how much they earn. Their bank knows exactly what's in their accounts. Their tenants know exactly what rent is due. These third parties must answer your questions under oath.
The debtor's employer knows their exact salary, payment schedule, and any upcoming bonuses.
Financial institutions hold the debtor's liquid assets and can be ordered to freeze or turn over funds.
If the debtor owns rental property, their tenants owe them rent - money you can redirect to yourself.
Partners and co-owners may owe distributions, have receivables, or control shared assets.
Anyone who owes money to your debtor - you can reach those receivables.
If the debtor is selling property, escrow companies hold substantial funds.
When you serve a third-party examination order, it creates an automatic lien on the debtor's property in that third party's possession. Under CCP § 708.120(b), from the moment of service, that third party cannot release the debtor's property without a court order or your consent.
Fill out the Application for Appearance with the third party's information (employer, bank, tenant, etc.).
File with court and get judge's signature setting the examination date and time.
Personally serve the third party at least 10 days before exam. This creates the lien.
At hearing, get answers about debtor's assets and request turnover or assignment orders.
This is critical: the moment you serve the third-party examination order, you have a lien on all of the debtor's property in that third party's hands. This means:
Personal service is required for third-party examinations. You cannot serve by mail. Use a registered process server to ensure proper service and a solid proof of service for the court record.
The real power of third-party examination comes at the hearing. You can ask the court to order the third party to turn over the debtor's property directly to you or to the levying officer.
Under CCP § 708.205, the court can order the third party to pay the money or deliver the property directly to the levying officer. This bypasses the debtor entirely.
For recurring income like wages or rent, request an assignment order under CCP § 708.510. This order requires the third party to make payments directly to you on an ongoing basis until the judgment is satisfied - no need for repeated levies.
Third-party examinations have different timing rules than debtor examinations, and strategic timing matters.
Unlike debtor examinations, there's no statutory limit on how often you can examine third parties. You can examine different third parties simultaneously, and you can re-examine the same third party if circumstances change.
After a debtor exam where you learn their employer and bank, have a process server waiting outside the courthouse. Immediately serve third-party exam orders on the employer and bank that same afternoon. The debtor has no time to drain accounts or change jobs.
Third parties who refuse to answer questions or produce documents can be held in contempt of court. They can also be held personally liable for any loss you suffer because of their non-compliance. Most third parties (especially banks and large employers) comply fully because they have no stake in protecting the debtor.
Yes, if the spouse controls community property or has property belonging to the debtor. In California, community property may be liable for the debt. You can examine the spouse about community assets, joint accounts, and any property they hold that the debtor has an interest in.
You can examine the debtor's business entity as a third party. The business may owe distributions to the debtor, hold assets the debtor has an interest in, or have accounts receivable that belong to the debtor. An officer of the company can be compelled to testify about the debtor's interests.
The lien created by service of the third-party examination order continues until the examination is held and the court makes an order regarding the property. If you want to maintain the lien after the exam, you need to obtain a turnover order, assignment order, or serve a levy. Don't let the exam lapse without securing the assets.
California courts have limited jurisdiction over out-of-state third parties. For banks, if the debtor's account is at a California branch, you can examine here. For out-of-state employers, you may need to domesticate your judgment in that state and conduct the exam there. Consult about interstate enforcement strategies.
Costs of enforcement, including examination costs, process server fees, and court reporter fees, are recoverable as enforcement costs under CCP § 685.040. Attorney's fees for enforcement may be recoverable if your judgment includes an attorney's fee provision or is based on a contract with such a provision.
I handle California third-party examinations from application through turnover orders. Find where the money is hiding and get it into your hands.