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When it comes to California contract law, ABC contracts are a well-established tool that can help individuals and entities avoid a formal bankruptcy filing. “ABC” stands for “Assignment for the Benefit of Creditors,” and the term describes a contract in which an economically troubled “Assignor” transfers control of its assets and property to an independent third party. This third party is called the “Assignee,” and they liquidate and wind-up the entity.

Continuing in our series about money judgment collection, here’s another option for how judgment creditors can collect from debtors. We’ve already discussed wage garnishments, bank levies and even what to do if you don’t have any information on the debtor’s assets. Another common method of collection involves placing a lien on the judgment debtor’s real property.