§ 697.420.Reinstatement of Judgment Lien; Priority After Return of Levied Property Or Wages
Title 9. Enforcement of Judgments · Division 2 · Chapter 2. Liens · Article 2. Judgment Lien on Real Property · Enacted 2025 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 697.420 lets a judgment creditor who released a real property judgment lien on the mistaken belief the judgment was satisfied, then had to return levied property or garnished wages under § 703.580(d), apply to reinstate the lien with its original priority, subject to a sworn declaration, notice to the debtor, a debtor's right to object, and a $1,500 penalty for false certifications.
(a)A judgment creditor may apply to the court for an order reinstating a judgment lien on real property with the same priority it held immediately before it was released. Subject to subdivisions (b) and (c), the court shall grant the application. Upon entry of the order the clerk shall do the following:
(1)Note in the court's records that the judgment is no longer satisfied to the extent of the returned funds or property.
(2)Issue to the judgment creditor a certificate and notice of reinstatement of judgment lien. The certificate of reinstatement of judgment lien shall identify the judgment and parties, the unsatisfied judgment amount, and the relevant recording or filing information from the original abstract of judgment.
(1)The application for reinstatement of a lien under subdivision (a) shall be filed with a declaration by the judgment creditor that includes and certifies all of the following:
(A)The title of the court, the case name and number, and the date and amount of the original judgment and any renewals thereof.
(B)A statement that the judgment creditor released a lien or liens in the reasonable belief that the money judgment was satisfied. This statement shall include:
(i)Information sufficient to identify the liens that were released, including the county or counties in which an abstract of judgment was recorded, and the recording dates and numbers of those recordings.
(ii)The details of any acknowledgment of full or partial satisfaction of judgment that was filed or entered as a result of the prior application of funds, including the date, county, and recording number of any acknowledgment of full or partial satisfaction of judgment recorded by the judgment creditor.
(C)A statement that after a lien was released, the judgment creditor was ordered pursuant to paragraph (2) or (3) of subdivision (d) of Section 703.580 to return to the judgment debtor property levied or wages garnished in satisfaction of the money judgment. A copy of the order shall be attached as an exhibit to the declaration.
(D)A statement that the judgment creditor returned, and the judgment debtor received, all property and wages ordered returned.
(E)A statement that but for the court's order pursuant to paragraph (2) or (3) of subdivision (d) of Section 703.580, the money judgment would have been fully satisfied or that the property returned to the judgment creditor was identified in a recorded acknowledgment of full or partial satisfaction of judgment.
(F)A statement that the judgment creditor is not appealing the order to return funds pursuant to subdivision (d) of Section 703.580.
(2)Knowingly certifying the accuracy of false information under paragraph (1) shall be subject to a civil penalty of not more than one thousand five hundred dollars ($1,500).
(1)The judgment creditor shall serve upon the judgment debtor by first-class mail to the address verified pursuant to paragraph (2) of subdivision (b) of Section 684.130 a copy of the application for an order reinstating a released lien.
(2)The judgment debtor may, within 15 days of service of the application, file a declaration stating that the funds or property identified by the judgment debtor pursuant to subparagraph (D) of paragraph (1) of subdivision (b) have not been returned.
(3)If a declaration under paragraph (2) is filed, the court shall deny the application and the judgment creditor shall file a noticed motion to be heard by the court in order to reinstate a lien and its priority.
(4)If no objection is filed under this subdivision, the clerk's reinstatement of the lien and its priority shall be automatically effective.
(d)An application under this section shall be filed in the action in which the judgment creditor was ordered, pursuant to paragraph (2) or (3) of subdivision (d) of Section 703.580, to return to the judgment debtor property levied or wages garnished in satisfaction of the money judgment.
(e)Attorney's fees are not recoverable under this section.
(f)The judgment creditor may record the certificate in the same manner as an abstract of judgment, and that recordation shall have the effect of restoring the lien's priority as if the prior release or satisfaction had not occurred.
(g)This section shall become operative on July 1, 2026.
Plain-English Summary
Sometimes a judgment creditor releases a lien too soon -- reasonably believing the judgment was paid off -- only to later be ordered, under § 703.580(d), to return property or wages that had been collected. Section 697.420, operative July 1, 2026, gives that creditor a path back to the lien's original priority instead of starting over from scratch.
Subdivision (a) lets the creditor apply for an order reinstating the lien with the priority it held before release; the court must grant it subject to the declaration and notice requirements in subdivisions (b) and (c). Once granted, the clerk notes that the judgment is no longer satisfied to the extent of the returned funds or property and issues the creditor a certificate and notice of reinstatement identifying the judgment, the parties, the unsatisfied amount, and the original recording information.
Subdivision (b) requires a sworn declaration laying out the case details, identifying the released liens, describing any satisfaction that was recorded because of the earlier collection, attaching the § 703.580(d) return order, confirming the property or wages were returned and received, and confirming the creditor isn't appealing that return order -- with a civil penalty of up to $1,500 for knowingly certifying false information. Subdivision (c) requires the creditor to serve the debtor by first-class mail, gives the debtor fifteen days to file a declaration disputing that the property was returned, and requires a court hearing on a noticed motion if the debtor does so; if the debtor doesn't object, the clerk's reinstatement becomes automatically effective.
Subdivision (f) lets the creditor record the reinstatement certificate the same way an abstract of judgment is recorded, restoring the lien's priority as though the earlier release or satisfaction had never happened. Attorney's fees aren't recoverable under this section.
Frequently Asked Questions
What situation does § 697.420 address?
A judgment creditor who released a real property judgment lien believing the judgment was satisfied, then was ordered under § 703.580(d) to return levied property or garnished wages to the judgment debtor.
Can the creditor get the lien's original priority back?
Yes. Section 697.420(a) lets the creditor apply for reinstatement with the same priority the lien held before it was released, and subdivision (f) lets the creditor record a certificate that restores that priority.
Does the judgment debtor get notice and a chance to object?
Yes. Subdivision (c) requires service by first-class mail and gives the debtor fifteen days to file a declaration disputing that the property or wages were returned, which triggers a noticed motion hearing.
What if the creditor certifies false information to get reinstatement?
Subdivision (b)(2) subjects knowing false certification to a civil penalty of up to $1,500.
When did this section take effect?
Section 697.420 became operative July 1, 2026.
Amendment History
Added by Stats 2025 ch 708 (AB 774),s 2, eff. 1/1/2026.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as:reinstating released judgment lien californiajudgment lien reinstatement after return of property