Legal Question in Credit and Debt Law in California

Re: Obtain payment of debt

Getting a security interest in your debtor's business property would have been easier had you done it at the time of the loan. Now, the only way to get a secured position is by agreement to add security to your transaction; or by suing the debtor and getting either a pre-judgement attachment, which would require the posting of a bond, and results in a lien, or a judgement, and recording an abstract of the judgement, producing a judgement lien, which attaches to any real property (but only real property) owned by the debtor, in the county in which it is recorded. You would also then be in a position to satisfy your judgement, via a writ of execution, if the debtor did not voluntarily pay the amount of the judgement.

Re: Obtain payment of debt

Unfortunately, the only way to do anything at this point would be to file a lawsuit. One other way would be for the debtor to sign some kind of security agreement now, which would save both of you money and time in court.

Re: Obtain payment of debt

Normally, a lawsuit will have to be filed. If you have a written agreement with a provision for the recovery of attorney fees, these fees may be recoveralbe. You cannot put a lien until you file a lawsuit. Our firm handles commercial collection cases all over California. If you fax any documents you have to me at 714 363 0229, I will provide you with free consultation. See www.larryrothman.com