Legal Question in Business Law in California

Assignment orders

An old client of mine obtained a judgment against me in the amount of $14000 earlier this year. A hearing is scheduled tomorrow seeking an assignment order regarding my current accounts receivables. I have attempted to work out a payment plan, but they will not accept. I have been able to pay $5400 in the past few weeks. I need more time to get it paid off. In addition, I don't want the opposing lawyer to continue to call my existing clients in which I am in good standing trying to get them to pay the judgment rather than me. I have payroll to meet and my company is in jeopardy of going bankrupt if the court imposes the assignment order. Do I have have any options at the hearing tomorrow?


Asked on 12/08/05, 6:53 pm

3 Answers from Attorneys

Philip Iadevaia Law Offices of Philip A. Iadevaia

Re: Assignment orders

Since you've already paid $5400, just less than half the judgment, the assignment order will only be for $8600 if granted. Raise this with the court and ask for a continuance on the grounds that an assignment order for the entire balance will work a hardship on you and that since you are making payments, a continuance will not prejudice the other side. Good luck.

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Answered on 12/09/05, 1:53 pm
JOHN GUERRINI THE GUERRINI LAW FIRM - COLLECTION LAWYERS

Re: Assignment orders

Assignment orders are routinely granted, provided that the judgment creditor has met the procedural and minimal substantive evidentiary requirements. We do many of these types of motions, and they are rarely denied.

If the hearing is tomorrow, and you have not filed an opposition, then your only hope is to hire an attorney now and have him/her appear tomorrow and ask for a continuance on the basis that he/she just got involved and needs time to review materials, etc. It might work; it might not. Most judges won't care, because presumably, you still owe the judgment.

You should immediately seek out the help of an attorney in your area, as based upon your facts, your creditor is about to get aggressive.

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Answered on 12/08/05, 6:59 pm
Carl Starrett Law Offices of Carl H. Starrett II

Re: Assignment orders

Unfortunately, it is a little late to be asking about this the night before the hearing. You really should have made these arguments in writing for the court to consider. The court does have a wide range of discretion in this type of motion and fashion a remedy that would allow you to stay in business and still pay the judgment. But if it isn't in writing, then the evidence isn't in the Court's file and the court has no basis to deny the relief requested.

Ask for a continuance to present evidence of the financial hardship. Retain legal counsel as soon as possible. Consult a bankrupty attorney, becuase it may be possible to stay in business in a Chapter 13 or Chapter 11 proceeding. Whatever you do, act now.

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Answered on 12/08/05, 7:01 pm


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