Your Home-State Judgment Against a California Borrower: How to Collect It Here

Many equipment finance agreements require suit in the lender’s home state. That clause produces a judgment quickly, but a Minnesota, New York, or New Jersey judgment cannot levy a California bank account or attach a California business’s equipment. It must first become a California judgment.

Two routes

California offers two ways to convert a sister-state money judgment: register it under the Sister State Money Judgments Act (Code Civ. Proc. §§ 1710.10–1710.65), or file a new action on the judgment. Registration is faster, needs no new lawsuit, and fits most equipment finance judgments. A judgment from a federal court is registered in the federal district court in California instead (28 U.S.C. § 1963).

How registration works

  • File the application. The creditor files an application for entry of judgment in the superior court for a county where a judgment debtor resides, or in any county if no debtor resides in California (Code Civ. Proc. § 1710.20). The application attaches an authenticated copy of the sister-state judgment and states the amount remaining unpaid.

  • Entry by the clerk. The clerk enters a California judgment on the application (Code Civ. Proc. § 1710.25). No hearing is required.

  • Notice. The creditor serves notice of entry of judgment on the debtor (Code Civ. Proc. § 1710.30).

  • Thirty days to challenge. The debtor may move to vacate within 30 days after service of the notice (Code Civ. Proc. § 1710.40). The available grounds are those that would defeat an action on the judgment, such as lack of personal jurisdiction in the original court or fraud. A forum-selection clause the borrower or guarantor signed usually answers a jurisdiction challenge.

When enforcement can start

Enforcement generally waits until 30 days after the creditor serves notice of entry (Code Civ. Proc. § 1710.45(a)). Three exceptions matter to lenders:

  • The debtor is an individual who does not reside in California, a foreign corporation not qualified to do business here, or a foreign partnership that has not filed the required statement. Enforcement may begin immediately (§ 1710.45(b)).

  • The court finds, on an ex parte showing, that delay would cause the creditor great or irreparable injury, such as evidence that the debtor is moving money or equipment out of reach (§ 1710.45(c)).

  • Property levied before the 30 days run cannot be sold or the proceeds distributed until the period ends (§ 1710.45(d)).

What the California judgment can do

Once entered, the judgment carries every California enforcement remedy:

  • Writs of execution and bank levies

  • Till taps and keeper levies on operating businesses

  • Judgment liens on business personal property, filed with the Secretary of State (Code Civ. Proc. § 697.510)

  • Abstracts of judgment that create liens on real property in each county where recorded (Code Civ. Proc. § 697.310)

  • Debtor examinations under oath (Code Civ. Proc. § 708.110)

  • Assignment orders on receivables and other payment streams (Code Civ. Proc. § 708.510)

  • Receiverships when the business itself is the asset

A California money judgment is enforceable for ten years and can be renewed (Code Civ. Proc. §§ 683.020, 683.110).

Guarantors who live in California

The same process applies when the borrower is out of state but a guarantor lives in California. Register the judgment against the guarantor in the county where the guarantor resides. SB 1286’s venue limits apply to debts not yet reduced to judgment (Civ. Code § 1788.15(b)); its conduct rules still govern how you collect from an individual guarantor on a covered account.

Register early

Register as soon as the home-state judgment is final. Every week a California borrower knows a judgment exists but faces no California levy is a week to move cash and equipment. Registration, a bank levy, and a Secretary of State judgment lien together often bring the debtor to the table within weeks.

Grant, Kessler & Zunshine represents equipment finance lenders and lessors in California, on contingency. See how we handle equipment finance collections, or call (619) 233-7078.

This article provides general information, not legal advice, and reflects California law as of October 2026. Prior results do not guarantee a similar outcome. Grant, Kessler & Zunshine, APC, 1331 India Street, San Diego, CA 92101.

Alexander J. Kessler