Bankruptcy Exemption Citations
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← California Miscellaneous Exemptions

Exemption: Property of business partnership

Citation: Stat. - Cal. Corp. Code § 16504

.
Cal. Corp. Code § 16504 :
16504.

(a) On application by a judgment creditor of a partner or of
a partner's transferee, a court having jurisdiction may charge the
transferable interest of the judgment debtor to satisfy the judgment.
The court may appoint a receiver of the share of the distributions
due or to become due to the judgment debtor in respect of the
partnership and make all other orders, directions, accounts, and
inquiries the judgment debtor might have made or that the
circumstances of the case may require.

(b) A charging order constitutes a lien on the judgment debtor's
transferable interest in the partnership. The court may order a
foreclosure of the interest subject to the charging order at any
time. The purchaser at the foreclosure sale has the rights of a
transferee.

(c) At any time before foreclosure, an interest charged may be
redeemed in any of the following manners:

(1) By the judgment debtor.

(2) With property other than partnership property, by one or more
of the other partners.

(3) With partnership property, by one or more of the other
partners with the consent of all of the partners whose interests are
not so charged.

(d) This chapter does not deprive a partner of a right under
exemption laws with respect to the partner's interest in the
partnership.

(e) This section provides the exclusive remedy by which a judgment
creditor of a partner or partner's transferee may satisfy a judgment
out of the judgment debtor's transferable interest in the
partnership.
Last Amended: 1996
1996

Stats.1996, c. 1003 (A.B.583), s 2.
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