§ 720.150.Sale Or Delivering of Property to Creditor Prohibited If Claim Timely Filed; Third Person's Interest Not Affected For Failure to File
Title 9. Enforcement of Judgments · Division 4 · Chapter 2. Third-Party Claims of Ownership and Possession · Enacted 1982 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 720.150 bars the levying officer from selling the property, delivering it to the creditor, or paying over proceeds once a third-party claim is timely filed, while making clear that failing to file a claim doesn't itself affect the third person's underlying interest in the property.
(a)Except as otherwise provided by statute, if a third-party claim is timely filed, the levying officer may not do any of the following with respect to the property in which an interest is claimed:
(1)Sell the property.
(2)Deliver possession of the property to the creditor.
(3)Pay proceeds of collection to the creditor.
(b)The interest of the third person in the property levied upon is not affected by the third person's failure to file a third-party claim under this chapter.
Plain-English Summary
A timely third-party claim freezes the levy in place. Once filed, the levying officer can't sell the property, deliver possession of it to the creditor, or pay over collection proceeds to the creditor, unless some other statute specifically allows it. That freeze holds until the process in §§ 720.140 and 720.160 plays out — the creditor either objects, files an undertaking, or lets the property go.
Subdivision (b) addresses the flip side: a third person who doesn't file a claim under this chapter doesn't lose the underlying property interest by staying silent. Skipping this procedure costs the third person its expedited protection against this particular levy — it doesn't extinguish ownership or possessory rights that exist independently of it.
Frequently Asked Questions
What happens to the levy once a third-party claim is timely filed?
The levying officer is barred from selling the property, delivering it to the creditor, or paying over proceeds, except as otherwise provided by statute.
Does failing to file a third-party claim mean I lose my ownership interest?
No. Section 720.150(b) says the third person's interest in the property isn't affected by failing to file a claim under this chapter.
How long does this freeze last?
Until the creditor responds under §§ 720.140 and 720.160, by objecting, filing an undertaking, or allowing the property's release.
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:freeze on levy third party claim california