Legal Question in Credit and Debt Law in California

Re: annuity

Under California law, certain assets are exempt from attachment by creditors. Your mother is a creditor of her son, and as such, she is bound by the same rules as any other creditor. First, to pursue any of his assets, she must file a lawsuit and obtain a judgment against him. Once she has done that, she will begin to attempt collection on the son, and in that process, he will probably assert certain exemptions for certain property, including the annuity received from his PI settlement. While the annuity may be exempt [Cal. Civ. Code ��703.140(b)(10)(C), (E) & (11)(D)], the funds as he withdraws them remain exempt only to the point where they are deposited into a bank account. After they come out of his bank account, they are technically not exempt. He may also have other assets that could be attached. If nothing else your mom needs to be concerned about the statute of limitations for collecting the debt - if she does not sue him before the statute of limitations expires, then she will lose the right to collect from him forever. A judgment is good for 10 years, plus can be renewed for another 10 thereafter.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.