Legal Question in Credit and Debt Law in California
How quickly can a creditor levy on my property? I owe 20K to someone on a promissory note. I know I have to pay, but I am in no position to do it right now (due to a long term unemployment). My creditor is not willing to wait any longer.
My house is paid and 75K homestead exemption will not have any impact on it should it be sold at the execution sale.
I want to know how long will it take creditor to actually collect on this? I obviously would put up the fight...to buy me more time, and possibly come up with needed funds. I am aware of the costs involved, but truly do not have this sum right now.
Thank you
1 Answer from Attorneys
The key question is whether the note is secured or not.
If the note is not secured, then the creditor must file a lawsuit, obtain a judgment, and then begin collection proceedings. Note, however, that the creditor can put a lien on your assets while the case is pending, through a process called a writ of attachment. If you have no defense, the creditor can get summary judgment probably as quickly as 6-8 months, and beging collection proceedings very quickly thereafter.
If the judgment is secured, the creditor may be able to begin foreclosure proceedings immediately. The timing issues depend on whether the security is real property or personal property.
You should meet with an attorney for an hour or so to review in more detail the facts of your situation, determine if you have any defenses to the debt, and get a better sense of the time frame.
Best of luck to you.
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