Title 9. Enforcement of Judgments · Division 2 · Chapter 2. Liens · Article 3. Judgment Lien on Personal Property · Enacted 1982 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 697.620 lets a personal-property judgment lien continue in the identifiable cash proceeds of a sale or other disposition with the same priority, but narrows that protection during the debtor's insolvency proceedings to proceeds that remain traceable in a separate account, as uncommingled cash, or as undeposited checks.
(1)"Cash proceeds" means money, checks, deposit accounts, and the like.
(2)"Proceeds" means identifiable cash proceeds received upon the sale, exchange, collection, or other disposition of property subject to a judgment lien on personal property.
(b)Except as provided in subdivision (c), the judgment lien on personal property continues in the proceeds with the same priority.
(c)In the event of insolvency proceedings (as defined in Section 1201 of the Commercial Code) instituted by or against the judgment debtor, the judgment lien continues under subdivision (b) only in the following proceeds:
(1)Proceeds in a separate deposit account containing only proceeds.
(2)Proceeds in the form of money which are neither commingled with other money nor deposited in a deposit account prior to the insolvency proceedings.
(3)Proceeds in the form of checks and the like which are not deposited in a deposit account prior to the insolvency proceedings.
Plain-English Summary
When property covered by a judgment lien gets sold, exchanged, or collected, the lien doesn't just vanish along with the property — it continues in the identifiable cash proceeds the debtor receives, keeping the same priority the lien had in the original property. Cash proceeds here means money, checks, deposit accounts, and similar forms of payment.
That continuing lien narrows sharply if the debtor ends up in insolvency proceedings. Once that happens, the lien only continues in proceeds that stayed traceable: money kept in a deposit account containing nothing but those proceeds, money that was never commingled with other funds or deposited anywhere before the insolvency proceedings began, and checks or similar instruments that were never deposited before those proceedings started. Proceeds that got mixed with other funds or deposited into a general account before insolvency proceedings began fall outside the lien's reach.
Frequently Asked Questions
Does a judgment lien on personal property extend to money received when that property is sold?
Yes, § 697.620(b) lets the lien continue in identifiable cash proceeds with the same priority it had in the original property.
What counts as "cash proceeds" under this section?
Money, checks, deposit accounts, and similar forms of payment received on the sale, exchange, or collection of the lien property.
Does the lien in proceeds survive if the debtor becomes insolvent?
Only for traceable proceeds — those in a separate account holding only proceeds, uncommingled cash, or undeposited checks. Commingled or deposited proceeds fall outside the lien once insolvency proceedings begin.
Amendment History
Added by Stats. 1982, Ch. 1364, Sec. 2. Operative July 1, 1983, by Sec. 3 of Ch. 1364.
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:judgment lien on proceeds californiainsolvency proceeds judgment lien tracing