Title 9. Enforcement of Judgments · Division 4 · Chapter 2. Third-Party Claims of Ownership and Possession · Last amended 2002 · Last verified July 28, 2026
In one sentenceSection 720.160 lets a creditor keep enforcement moving despite a third-party claim by filing an undertaking, generally set at $10,000 or twice the lien amount (whichever is less), indemnifying the third person and conditioned on a final judgment resolving ownership or possession, with public entities allowed to file an opposition notice instead.
(a)If the creditor files with the levying officer an undertaking that satisfies the requirements of this section within the time allowed under subdivision (b) of Section 720.140:
(1)The levying officer shall execute the writ in the manner provided by law unless the third person files an undertaking to release the property pursuant to Chapter 6 (commencing with Section 720.610).
(2)After sale, payment, or delivery of the property pursuant to the writ, the property is free of all claims of the third person for which the creditor has given the undertaking.
(b)Subject to Sections 720.770 and 996.010, unless the creditor elects to file an undertaking in a larger amount, the amount of the undertaking filed by the creditor under this section shall be in the amount of ten thousand dollars ($10,000), or twice the amount of the execution lien as of the date of levy or other enforcement lien as of the date it was created, whichever is the lesser amount.
(c)An undertaking given by the creditor under this chapter shall:
(1)Be made in favor of the third person.
(2)Indemnify the third person against any loss, liability, damages, costs, and attorney's fees, incurred by reason of the enforcement proceedings.
(3)Be conditioned on a final judgment that the third person owns or has the right of possession of the property.
(d)If the creditor is a public entity exempt from giving an undertaking, the public entity shall, in lieu of filing the undertaking, file with the levying officer a notice stating that the public entity opposes the claim of the third person. When so filed, the notice is deemed to satisfy the requirement of this section that an undertaking be filed.
Plain-English Summary
Filing a qualifying undertaking is how a creditor pushes past a third-party claim. If the creditor files one within the ten days § 720.140(b) allows, the levying officer proceeds with the writ as usual, unless the third person has separately filed its own undertaking to release the property under Chapter 6. Once the property is sold, delivered, or paid over under the writ, it's free of the third person's claims that the undertaking covered.
The undertaking amount follows a formula, subject to §§ 720.770 and 996.010: unless the creditor chooses a larger amount, it's set at $10,000, or twice the amount of the execution lien (or other enforcement lien) as of the relevant date, whichever figure is smaller. Whatever the amount, the undertaking must run in the third person's favor, indemnify against loss, liability, damages, costs, and attorney's fees from the enforcement proceedings, and be conditioned on a final judgment establishing that the third person owns or has the right to possess the property.
A public entity that's exempt from filing undertakings gets a substitute: instead of an undertaking, it files a notice with the levying officer stating that it opposes the third person's claim, and that notice satisfies this section's requirement in the entity's place.
Frequently Asked Questions
How much must the creditor's undertaking be?
Generally $10,000, or twice the amount of the execution or other enforcement lien as of the relevant date, whichever is less — unless the creditor elects to file a larger undertaking.
What does the undertaking protect the third person against?
Loss, liability, damages, costs, and attorney's fees incurred because of the enforcement proceedings, with the undertaking conditioned on a final judgment resolving the third person's ownership or possession claim.
What if the creditor is a public entity exempt from filing undertakings?
The public entity files a notice with the levying officer opposing the third person's claim instead, which satisfies this section's requirement.
What happens once the creditor files a qualifying undertaking?
The levying officer executes the writ as usual, unless the third person has filed its own release undertaking under Chapter 6, and the property becomes free of the covered claims once sold, delivered, or paid over.
Amendment History
Amended by Stats 2001 ch 812 (AB 223), s 5, eff. 1/1/2002.
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 undertaking third party claim california