Bill Text: CA AB2463 | 2019-2020 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Enforcement of money judgments: execution: homestead.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2020-09-28 - Chaptered by Secretary of State - Chapter 218, Statutes of 2020. [AB2463 Detail]

Download: California-2019-AB2463-Introduced.html


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 2463


Introduced by Assembly Member Wicks

February 19, 2020


An act to add Sections 699.730 and 699.740 to the Code of Civil Procedure, relating to civil actions.


LEGISLATIVE COUNSEL'S DIGEST


AB 2463, as introduced, 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 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.
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 also prohibit the sale under execution of a lien of principal place of residence of a person 70 years of age or older, or that person’s unremarried spouse, if the lien arises out of a debt for nonpayment of a tax, for so long as the principal place of residence has the character of a homestead, as defined.
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 obligation arising out of the nonpayment of a tax, a purchase money mortgage, or a home improvement loan.

SEC. 2.

 Section 699.740 is added to the Code of Civil Procedure, to read:

699.740.
 Notwithstanding any other law, the principal place of residence of a person who is 70 years of age or older or the unremarried spouse of that person is not subject to sale under execution of a lien arising out of a debt for the person’s nonpayment of a state or local tax for so long as the principal place of residence continues to have the character of a homestead, as defined in Section 704.710.

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