(a) The court shall determine any exemption claim made in the action. If the judgment debtor establishes to the satisfaction of the court that the property or debt is exempt from enforcement of a money judgment, the court shall so adjudge and may not make the orders referred to in subdivisions (b), (c), and (d).
§ 708.280.Determination By Court
Title 9. Enforcement of Judgments · Division 2 · Chapter 6. Miscellaneous Creditors' Remedies · Article 3. Creditor's Suit · Enacted 1982 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 708.280 requires the court to resolve any exemption claim first, then either adjudge exempt property off-limits, apply the third person's property or debt to the creditor's judgment, bar transfer pending levy, or hold the third person liable for wrongly transferring or paying, capped at the unsatisfied judgment amount.
Full Text of § 708.280
(b) If the judgment creditor establishes that the third person has property in which the judgment debtor has an interest or is indebted to the judgment debtor, the court shall render judgment accordingly. The property or debt may be applied to the satisfaction of the judgment creditor's judgment against the judgment debtor as ordered by the court.
(c) If the court determines that the third person has property in which the judgment debtor has an interest, the court may order the third person not to transfer the property until it can be levied upon or otherwise applied to the satisfaction of the judgment.
(d) If the court determines that the third person has transferred property that was subject to a lien in favor of the judgment creditor or, contrary to court order of which the third person has notice, has paid the debt to the judgment debtor or has transferred the property, the court shall render judgment against the third person in an amount equal to the lesser of the following:
(1) The value of the judgment debtor's interest in the property or the amount of the debt.
(2) The amount of the judgment creditor's judgment against the judgment debtor remaining unsatisfied.
Plain-English Summary
This section walks through how a creditor's suit resolves at trial, in the order the questions arise. The court starts with any exemption claim raised under § 708.260: if the debtor proves the property or debt is exempt, the court adjudges it exempt and can't make any of the further orders this section otherwise allows.
Past that threshold, if the creditor proves the third person has the debtor's property or owes the debtor's debt, the court renders judgment accordingly, letting that property or debt be applied to satisfy the creditor's own judgment against the debtor. If the court finds the third person holds an interest belonging to the debtor, it can also order the third person not to transfer that property until it's levied on or otherwise applied to the judgment.
The last piece covers a third person who didn't play by the rules — one who transferred property that was already subject to a creditor's lien, or who paid the debt or transferred the property despite a court order the third person knew about. In that situation, the court enters judgment against the third person personally, for whichever is less: the value of the debtor's interest in the property or the amount of the debt, or the remaining unsatisfied amount of the creditor's judgment against the debtor.
Frequently Asked Questions
What does the court decide first in a creditor's suit?
Any exemption claim raised under § 708.260 — if the debtor proves the property or debt is exempt, no further enforcement orders can be made against it.
What happens if the creditor proves the third person holds the debtor's property?
The court renders judgment applying that property or debt to satisfy the creditor's judgment, and can order the third person not to transfer the property until it's levied on.
What if the third person already transferred the property or paid the debt improperly?
The court enters judgment against the third person for the lesser of the property's or debt's value and the unsatisfied balance of the creditor's judgment.
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: creditor's suit judgment californiawhat happens if third party transfers debtor property