Collections Satisfaction & Renewal

Creditor Won't Clear Your Judgment? Force Them (California Guide)

You paid the judgment in full but the creditor won't file a satisfaction. The judgment lien is still on your credit and property. California law lets you force them - and collect $100/day in penalties while you're at it.

$100/Day
Statutory Penalty
Attorney Fees
Recoverable
Court Order
Forces Compliance

Your Right to a Satisfaction of Judgment

Under CCP 724.050, when a judgment is paid in full, the creditor must file an acknowledgment of satisfaction within 14 days of your written demand. If they fail to do so, you can:

This isn't an empty threat. Courts regularly award substantial penalties to judgment debtors whose creditors ignore satisfaction obligations.

The Penalty Math Gets Serious Fast

If a creditor delays filing satisfaction for 90 days after your demand, that's 76 penalty days at $100/day = $7,600 in statutory penalties alone, plus your attorney fees and actual damages. Many debtors have recovered more in penalties than the original judgment amount.

Step-by-Step: Forcing a Satisfaction

1

Send Written Demand

Send creditor a written demand for acknowledgment of satisfaction. Use certified mail.

2

Wait 14 Days

Give them the full 14-day statutory period to comply. Document the date.

3

File Motion

File motion to compel satisfaction under CCP 724.050. Include penalty calculation.

4

Court Orders Satisfaction

Court orders satisfaction filed and awards you penalties, damages, and fees.

Your Written Demand Should Include

Use Certified Mail With Return Receipt

You'll need to prove when the creditor received your demand. Certified mail with return receipt requested creates a documented delivery date. Without proof of delivery, the creditor can claim they never received the demand.

Recoverable Damages

When you win a motion to compel satisfaction, the court can award multiple types of damages:

Statutory Penalty ($100/Day)

For each day after the 14-day period expires without a filed satisfaction, the creditor owes you $100. This is automatic - you don't need to prove actual harm.

Actual Damages

Any real harm you suffered from the unsatisfied judgment, including:

Attorney's Fees

Reasonable attorney's fees incurred in bringing the motion. This makes it economically viable to hire an attorney even for relatively small judgments - the creditor pays your legal costs.

Fee Shifting Makes This Worthwhile

Because you recover attorney's fees if you win, hiring an attorney to bring this motion costs you nothing out of pocket (if successful). The creditor pays your legal bills. This levels the playing field against creditors who think they can ignore the law.

Alternative: File Your Own Satisfaction

Under CCP 724.110, if the creditor won't file satisfaction, you can file a Declaration of Satisfaction of Judgment (Form EJ-100) yourself.

Requirements

Process

  1. Complete Form EJ-100 as judgment debtor
  2. Attach declaration explaining payment and creditor's failure to file
  3. Attach proof of payment
  4. File with court
  5. Court enters satisfaction on the record

Why Not Just Self-File?

You can clear the judgment yourself, but you give up the $100/day penalties and attorney fees. If the creditor has been ignoring you for months, pursuing the motion may recover significant money. Evaluate whether the penalties accumulated justify the extra effort.

Frequently Asked Questions

This is a common defense. Be prepared to show exactly what was owed (principal, interest, costs) and exactly what you paid. If there's a genuine dispute about amounts, the court will resolve it at the hearing. If the creditor is making frivolous claims to justify non-compliance, the court won't look kindly on that behavior.

If the creditor has disappeared or you genuinely cannot locate them despite reasonable efforts, you can still file for satisfaction yourself using Form EJ-100. Include a declaration describing your attempts to locate the creditor. Courts are sympathetic when creditors abandon judgments without providing satisfaction.

Yes. If the business dissolved, you can file for satisfaction yourself with documentation showing the business no longer exists. If the business was sold or merged, the successor may be responsible. Either way, you're not stuck with an unsatisfied judgment forever because the creditor no longer exists.

The $100/day penalty continues accruing until the creditor files satisfaction. Courts have awarded penalties spanning years of non-compliance. However, courts may reduce penalties if you delayed unreasonably in bringing your motion after the violation became clear. File your motion reasonably promptly.

You're still entitled to penalties for the days the satisfaction was late, plus your attorney's fees for having to bring the motion. The creditor can't escape liability by filing late - the statute imposes penalties for each day of non-compliance. Continue pursuing your motion for the monetary awards.

$240 /hour

Creditor Ignoring Your Satisfaction Demand?

I file motions to compel satisfaction and recover penalties for California judgment debtors. When creditors refuse to clear paid judgments, we make them pay - literally.

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