A major consideration of any commercial enterprise that engages in business, especially, with new partners, is whether, in the worst-case scenario, the debtor has the assets to satisfy a money judgment and, more importantly, whether these assets will be available once a judgment is rendered. A writ of attachment, a pre-judgment provisional remedy, is a valuable tool available to any business enterprise.
In California, the list of attachable property owned by an individual is defined by statute. C.C.P. § 481.195. Personal property may be tangible or intangible, including money, chattel paper, documents of title, instruments, securities, and general intangibles. Personal property may also include equipment, inventory, and accounts receivable. C.C.P. §§ 481.020-481.225. If there is a statutory procedure under California law for attaching a property-specific type, every asset owned by a defendant in California is subject to attachment.
Obtaining a writ of attachment allows the party holding the writ to assume converts creditor/plaintiff into a secured position thus gaining priority over unsecured creditors, and improving the likelihood that any final judgment will be enforceable. Obtaining a writ of attachment may also expedite settlement since it strengthens the underlying claim.
The attorneys at Glass & Goldberg in California provide high quality, cost-effective legal services and advice for clients in all aspects of commercial compliance, business litigation, and transactional law. Call us at (818) 888-2220, send an email inquiry to info@glassgoldberg.com or visit us online at glassgoldberg.com to learn more about the firm and to sign up for future newsletters.