Recording Judgment Costs At The Court

I am not an attorney, I am a judgment referral specialist (Judgment Broker). This article is my opinion, based on my experience in California, and laws are different in each state. Nothing in any of my articles should ever be considered legal advice.

In this article, when "MC-12" is used, it means a Memorandum Of Costs form. MC-12 is a California judicial council form. (See my other article on filling out a MC-12 form.)

When a MC-12, or an equivalent form, motion, or affidavit is used, it means to document and record itemized judgment enforcement costs with the court, which adds the itemized costs to a judgment debtor's debt.

In California, one must claim costs within two years of incurring them, and costs are added to the judgment after these three things are done:

1) A MC-12 form is filled out, and a copy of it is usually mailed, and occasionally personally served on the judgment debtor, by someone who signs a proof of service for it.

2) The MC-12 and the proof of service (POS) for it, is recorded at the court.

3) The calendar time limit, for the debtor to object to the MC-12 has passed.

In California, if you claim any kind of cost, the debtor must be served a copy of the completed MC-12. The judgment debtor is given ten days if personally served, and 15 days when they are served by first class mail, to object to your MC-12.

Not every recovery cost can be added to a judgment. Every state has different laws. Usually, examples of allowed costs are the costs of getting or serving a garnishment, abstract of judgment, writ, levy, debtor examination, UCC lien, etc.

One cannot claim lawyer fees to enforce a judgment unless the contract the judgment originated from, allowed for lawyer fees. One also cannot deduct postage, coffee, your time (if not a lawyer), milage, parking fees, or most other non-court related costs.

In California, judgment interest is currently 10% simple interest per year, and is not compounded, except when the judgment is renewed. In calculations, one needs to truncate interest rates downward, not round them up. (0.6039 becomes 0.603.)

Interest is not added to the principal amount owed on a judgment. Allowed costs are added to the judgment principal. Once costs are added, they increase the rate that the judgment interest accrual rate.

It is best to download the MC-12 form, or the equivalent form for your state, from a court web site, and fill it out as a fillable PDF and print it. Second best is typing it, last choice is printing it out by hand.

Very few courts require copies of receipts for what is claimed. However, I've met a few courts that required the receipts for abstracts and writs issued recently by the same court, which seems silly.

When you claim costs, you must have someone else, over the age of eighteen and not related to the case, print and sign their name on the MC-12's POS, and put the MC-12 in an envelope that is mailed to the debtor.

You can pre-fill out everything, except where the person that serves the debtor prints and signs, which makes it easy for them. The POS (documenting that the MC-12 was delivered to the judgment debtor) can be served personally, or (much more likely) served by first class mail.

When there are no costs, you can type "(No proof of service required - No costs, interest Only)" in the "My Address" area near the top of the page, and date and sign the bottom of the page. Some court clerks do not fully know the law about this, and will want the POS done even when there are no claimed costs. Asking for a supervisor often gets a MC-12 approved with no costs and no POS, when one signs the POS page.

When the MC-12 is filled out as much as you can (everything except the printing and signature of the person that will be serving it), make two copies of it, because 1 copy needs to be served on the judgment debtor.

You need to prepare a stamped envelope, with your name and address on the return envelope, and the debtor's last known address. You should do some due diligence to verify the address of the debtor is correct.

Do not place anything related to judgments or debts owed on the envelope. Self-sealing envelopes are best. Pages should be folded inward to protect the privacy of the debtor. One does not need a cover letter in the envelope, just the MC-12.

The person serving the debtor cannot be you. They can be a process server, someone at a mailbox rental store, a friend, etc. They may charge you. (If they do not charge you, consider giving them a gift once in while.) They must sign page 2 of the MC-12, (I recommend lending them a blue pen to sign, which will show the original copy that the court requires), seal the envelope, and deposit the sealed and stamped envelope addressed to the judgment debtor, in an active mailbox or the post office.

After the envelope is mailed, and the POS is signed, make a copy of the page signed by the person that served the judgment debtor. Be sure you have 2 complete copies of the MC-12, with the POS page and the first pagestapled together.

Bring or mail both copies to the court. They will stamp both, keep the original copy, and return the other copy to you. Keep your copy, for your records.


------

http://www.JudgmentBuy.com - is the best and fastest judgment solution, where Judgments quickly get Purchased or Enforced by the best!

Mark Shapiro - Judgment Broker - Free leads for Judgment Enforcers and contingency collection attorneys.