What is a charging order?

A charging order is a legal tool used in California to protect assets in asset protection law. It is a court order that grants a creditor the right to collect money owed by an individual or company from certain assets held in trust or from a third party. In order to obtain a charging order, the creditor must prove to the court that the person or business owes a debt that must be paid. Once the court grants the charging order, the creditor has the right to take any money or profits from any assets held in trust or by a third party in order to pay off the debt. For example, if the person or business owes money to the bank, the creditor can get a charging order against any assets held in trust or by a third party, such as a retirement account. This means that any money that is deposited into the retirement account must first be paid to the creditor before the person or business can access it. The creditor can also seek other remedies, such as seizing the assets themselves or garnishing wages. However, charging orders are the preferred method of asset protection in California because they are less expensive and don’t involve the seizure of assets. Charging orders also provide the creditor with assurance that the debt will be paid, since the assets held in trust or by a third party are now subject to the court’s control.

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What is a charging order?

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