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AB-2463 Enforcement of money judgments: execution: homestead.(2019-2020)

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Date Published: 04/27/2020 09:00 PM
AB2463:v97#DOCUMENT

Amended  IN  Assembly  May 04, 2020
Amended  IN  Assembly  March 02, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 2463


Introduced by Assembly Member Wicks

February 19, 2020


An act to amend Section 704.760 of, and to add Section 699.730 to to, the Code of Civil Procedure, relating to civil actions.


LEGISLATIVE COUNSEL'S DIGEST


AB 2463, as amended, Wicks. Enforcement of money judgments: execution: homestead.
Existing law authorizes a judgment creditor to enforce a money judgment obtained in a civil action by obtaining a writ of execution that allows the creditor to levy on property of the judgment debtor and obtain satisfaction of the judgment by, among other things, a sale of the property. Existing law generally provides that all property of the judgment debtor is subject to execution, with specified exceptions. Existing law authorizes a judgment debtor to protect a specified amount of the judgment debtor’s equity in the debtor’s principal dwelling by claiming a homestead exemption in that property. Existing law requires a judgment creditor who has levied on a judgment debtor’s dwelling to apply to the court for a sale of the dwelling, and specifies the contents of that application.
This bill would prohibit a sale under execution of a judgment lien of a judgment debtor’s principal place of residence if the underlying judgment is based on an unsecured consumer debt, as defined. The bill would require a judgment creditor’s application for sale of a dwelling to include a statement that the judgment on which the execution sale is based is not for an unsecured consumer debt.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 699.730 is added to the Code of Civil Procedure, to read:

699.730.
 (a) Notwithstanding any other law, the principal place of residence of a judgment debtor is not subject to sale under execution of a judgment lien when the underlying judgment is based on an unsecured consumer debt.

(b)“Unsecured consumer debt” means any obligation or alleged obligation of a natural person to pay money arising out of a transaction in which the money, property, or services which are the subject of the transaction are primarily for personal, family or household purposes. An “unsecured consumer debt” does not include an obligation arising out of the nonpayment of a tax, a purchase money mortgage, or a home improvement loan.

(b) For purposes of this section, the following terms have the following meanings:
(1) “Consumer debt” means debt incurred by an individual primarily for personal, family, or household purposes. Consumer debt does not include obligations arising out of any of the following:
(A) Unpaid wages or employment benefits.
(B) Unpaid taxes.
(C) Child support.
(D) Spousal support.
(E) Fines and fees owed to governmental units.
(F) Torts.
(2) “Unsecured” with respect to a debt means that the debt does not have specific property that serves as collateral for payment of the debt when the debt was reduced to judgment.

SEC. 2.

 Section 704.760 of the Code of Civil Procedure is amended to read:

704.760.
 The judgment creditor’s application shall be made under oath, shall describe the dwelling, and shall contain all of the following:
(a) A statement whether or not the records of the county tax assessor indicate that there is a current homeowner’s exemption or disabled veteran’s exemption for the dwelling and the person or persons who claimed any such exemption.
(b) A statement, which may be based on information and belief, whether the dwelling is a homestead and the amount of the homestead exemption, if any, and a statement whether or not the records of the county recorder indicate that a homestead declaration under Article 5 (commencing with Section 704.910) that describes the dwelling has been recorded by the judgment debtor or the spouse of the judgment debtor.
(c) A statement of the amount of any liens or encumbrances on the dwelling, the name of each person having a lien or encumbrance on the dwelling, and the address of such person used by the county recorder for the return of the instrument creating such person’s lien or encumbrance after recording.
(d) A statement that the judgment is not for an unsecured consumer debt, as defined in Section 699.730.