After a judgment is issued, it can be a challenge to enforce that judgment. Too often, losing parties attempt to avoid payment of
a civil judgment. A court-appointed receiver is one of the best tools that you have at your disposal when you or someone you represent is owed money on a judgment from an uncooperative party. Receivers can enforce assignment orders to take over certain rights of judgment debtors so that the judgment creditors can get what they are owed.
Some of the most common rights that a post-judgment receiver assumes through assignment orders include:
- Collecting rent from tenants
- Collecting disbursements from an employer
- Collecting sales commissions and royalties
- Overseeing accounts receivable of a business
- Receiving installment payments on promissory notes or other judgments
The Role of a Court-Appointed Receiver with Assignment Orders
A receiver may be appointed by a court following entry of a judgment and after it is established the judgment creditor is not cooperative. The receiver may be empowered to take control of assets or rights to assets of the judgment debtor to satisfy the judgment creditor’s judgment.
The goal is to liquidate assets, collect payments, discover any hidden funds, and ensure that the judgment is satisfied pursuant to the court’s orders.
Additionally:
- An assignment order may allow the receiver to take possession of both assets and income streams.
- The receiver can direct banks, customers, clients, and employers to turn over funds that would have gone to the judgment debtor and instead send them to the receiver.
What are Assignment Orders?
An assignment order is a legal directive issued by a court that assigns certain rights and/or assets of a judgment debtor to a judgment creditor. The purpose of an assignment order is to facilitate the collection of the judgment debt by directing a third party to transfer funds or assets directly to the judgment creditor (or receiver if one is appointed).
How Red Griswold Has Utilized Assignment Orders as a Post-Judgment Receiver
Richardson “Red” Griswold has served as a post-judgment receiver in California many times, including post-judgment matters involving assignment orders.
For example, Mr. Griswold was appointed to implement an assignment order against a mortgage lending company that was controlled by the judgment debtor. All proceeds, earnings, distributions, and/or revenue due from the mortgage lending company to the judgment debtor were ordered to be delivered directly to the receiver instead.
In another matter, Mr. Griswold was directed to intercept and receive any distributions, earnings, payments, commissions, and/or wages from an entity that was created by the judgment debtor.
The Process of Obtaining an Assignment Order
To obtain an assignment order, a judgment creditor must file a motion that details the assets and/or revenue to be assigned and how those assets/revenue are related to the judgment debtor. The court will hold a hearing and allow the judgment debtor to respond.
Griswold Law Provides Receivership Services, Including Post-Judgment Receiverships
Post-judgment receivers, using assignment orders and many other tools, can resolve situations that have previously seemed unresolvable.
To learn more about post-judgment receiverships, let’s talk. Contact Griswold Law to find out more about how our team can serve you or the clients you represent in the process of ensuring prompt satisfaction of judgments.
