The Limitations Of Keepers

I am not a lawyer, I am a judgment and debt referral specialist (Judgment and Collection Agency Broker). This article is my opinion, based on my experience in California, and laws vary in every state. If you want a strategy to use or legal advice, please contact an attorney.

When the debtor is a business, one of the tools to recover a judgment is to hire a sheriff to be a "keeper". The definition of a keeper is when a sheriff or their agents, go to a business for at least an entire day, inventories assets, and usually intercepts cash flows from customers to a business or its cash registers.

A keeper is similar to a "till-tap", however a till-tap usually lasts for much less than a whole day, and only intercepts cash flow to a business. A keeper stays longer, and inventories assets of the business for possible future seizure and sale at an auction. Keepers and till-taps are at the creditor's expense, however those costs may be added to the judgment debtor's debt.

In some locations, sheriffs have the resources to install keepers on a timely basis. In many counties, there are insufficient sheriff employees, and keepers are scheduled five to six weeks out, often having a limit of one day in a row. After you get your one-day keeper, your request goes back to the back of the line, so other judgment creditors can buy their keepers. When it is your turn again, you can buy another keeper.

Sheriffs cannot interfere with the normal operations of the business or their employees. You can't request the sheriff to request the employees of the business to empty their pockets, or make customers to buy things, because the sheriff is only a levying officer. With a court order, the sheriff can later levy and sell at auction; equipment, inventory, art, and other movable business assets.

A registered process server cannot be a keeper. A court-appointed receiver can arrange to install a keeper every day, or as often as is required to satisfy the judgment. Receivers are very expensive, however a daily keeper function will cause most businesses to pay what is owed, file for bankruptcy protection, or close.

If a keeper is not available or practical in your county, there are other ways to enforce a judgment against a business. I have read that you might be able to levy on the building lease, if there are at least two years remaining on the lease, and if the building owner agrees.

One would have the sheriff to levy the building lease, and sell it at an auction. No additional court hearing is necessary. Like any other business property, a business lease can be sold at an execution sale (auction) to the highest bidder. Of course, if you are the successful bidder at the auction, you must (at least begin to) pay the monthly lease.

One may recover some or all of their costs by subleasing the property to someone else who would enjoy a turn-key business. Of course that is not your real goal, however you need to be prepared for that possibility. Your goal, and what often happens is, once the owner realizes they might lose their business, they will often find a way to satisfy the judgment.


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