Title 9. Enforcement of Judgments · Division 2 · Chapter 3. Execution · Article 6. Sale and Collection · Enacted 1982 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 701.520 requires levied accounts receivable, chattel paper, general intangibles, final money judgments, and certain instruments to be collected rather than sold, unless the judgment creditor notices an intended sale and the debtor doesn't successfully move the court for collection instead.
(a)Except as provided in this section, any of the following property that has been levied upon shall be collected rather than sold:
(1)Accounts receivable.
(2)Chattel paper.
(3)General intangibles.
(4)Final money judgments.
(5)Instruments that are not customarily transferred in an established market.
(6)Instruments that represent an obligation arising out of the sale or lease of property, a license to use property, the furnishing of services, or the loan of money where the property sold or leased or licensed for use, the services furnished, or the money loaned was used by an individual primarily for personal, family, or household purposes.
(b)At the time of levy on property described in subdivision (a) or thereafter, the judgment creditor may serve a notice of intended sale of the property on the judgment debtor. Service shall be made personally or by mail. A copy of the notice of intended sale and proof of service on the judgment debtor shall be filed with the court and with the levying officer. The notice of intended sale shall describe the property and state that it will be sold at an execution sale unless, within the time allowed after service of the notice of intended sale, the judgment debtor applies to the court on noticed motion for an order that the property be collected rather than sold.
(c)Within 10 days after service of the notice of intended sale, the judgment debtor may apply to the court on noticed motion for an order that the property be collected rather than sold. A judgment debtor who so applies shall, within the time allowed for the application, serve a copy of the notice of motion on the judgment creditor and file a copy of the notice of motion with the levying officer. Service of the copy of the notice of motion on the judgment creditor shall be made personally or by mail. If the copy of the notice of motion is not filed with the levying officer within the time allowed, the levying officer shall proceed to sell the property. If a copy of the notice of motion is filed with the levying officer within the time allowed, the levying officer shall continue to collect the property until otherwise ordered by the court.
(d)At the hearing on the motion, the court may in its discretion order that the property be sold or be collected depending on the equities and circumstances of the particular case. If the court orders that the property be sold, the order may specify terms and conditions of sale. If the court orders that the property be collected, the court may condition its order on an assignment of the property by the judgment debtor to the judgment creditor pursuant to Article 6 (commencing with Section 708.510) of Chapter 6.
Plain-English Summary
Some levied property isn't well suited to an auction — there's no ready market for an ordinary account receivable the way there is for a car. Section 701.520 defaults six categories to collection instead of sale: accounts receivable, chattel paper, general intangibles, final money judgments, instruments not customarily traded in an established market, and instruments arising from personal, family, or household transactions.
The judgment creditor can still push for a sale by serving a notice of intended sale on the debtor and filing proof of service with the court and the levying officer. The debtor then has ten days to move the court, on noticed motion, for an order that the property be collected instead — serving the creditor and filing the motion with the levying officer within that window. Miss that filing deadline with the officer, and the officer proceeds to sell; file on time, and the officer keeps collecting until the court says otherwise.
At the hearing, the court weighs the equities of the particular case and can order either sale, with whatever terms it specifies, or collection, which it may condition on the debtor assigning the property to the creditor under Article 6 (commencing with § 708.510) of Chapter 6.
Frequently Asked Questions
What kind of levied property is collected rather than sold by default?
Accounts receivable, chattel paper, general intangibles, final money judgments, instruments not customarily traded in an established market, and certain consumer-purpose instruments.
Can the judgment creditor still force a sale of this property?
Yes, by serving a notice of intended sale on the debtor and filing proof of service with the court and the levying officer.
How does the debtor stop the sale from happening?
By moving the court, on noticed motion, within ten days after service of the notice of intended sale, and filing the notice of motion with the levying officer within that time.
What happens if the debtor doesn't file the motion with the levying officer in time?
The levying officer proceeds to sell the property.
What can the court do if it orders the property collected instead of sold?
Condition its order on the debtor assigning the property to the judgment creditor under Article 6 (commencing with § 708.510) of Chapter 6.
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:collection versus sale of levied property californianotice of intended sale california