Senate Bill (SB) 1200 was approved by the Governor and became effective on September 30, 2022. SB 1200 made significant changes in the rights of judgment creditors when they renew money judgments in California.

The new law increases from 30 to 60 days the amount of time after service of a notice of renewal that a judgment debtor may make a motion to vacate or modify a renewal. The law now limits a judgment creditor to renew the period of
enforceability in cases of a money judgment of under $200,000 that remains unsatisfied for a claim relating to medical expenses and for a money judgment of under $50,000 that remains unsatisfied for a claim related to personal debt only once and for a period of 5 years from the date the application is filed. The law now prohibits a judgment creditor from bringing an action on those types of money judgments.

The law also prohibits an application for another renewal of these types of judgments from being filed if the judgment was renewed on or before December 31, 2022. The new law does not apply to judgments for debts incurred due to, orobtained by tortious or fraudulent conduct,or judgments for unpaid wages, damages, or penalties owed to an employee.

Interest accrues on money judgments at the rate of ten percent (10%) per annum. For judgments entered on or after January 1, 2023, or where an application for renewal of judgment is filed on or after January 1, 2023, the new law creates an exception from that interest rate. Interest now accrues at the rate of 5% per annum for a money judgment of under $200,000 that remains unsatisfied for a claim related to medical expenses and for a money judgment of under $50,000 that remains unsatisfied for a claim related to personal debt.

Once a judgment creditor obtains a money judgment, the creditor’s work is not over. Now, for personal debt money judgments under $50,000.00 and medical expense money judgments under $200,000.00, the time to enforce the judgments is limited and the interest rate has been cut. Therefore, now prompt action and relentless attention to collection of the judgment once entered is more important than ever. If you are a judgment creditor with one of these types of money judgments immediately contact legal counsel and commence collection and enforcement proceedings.

The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.