FORD MOTOR CREDIT COMPANY, ET AL. VS. UTOPIA RETAIL HOLDINGS

Tentative Rulings

Case Number: YC067503    Hearing Date: March 03, 2020    Dept: SWB

Hearing Date: March 3, 2020

Moving Parties: Judgment debtor Elizabeth Klarick

Responding Party: Judgment creditor Ford Motor Credit Co.

Claim of Exemption

The court considered the claim of exemption and opposition.

RULING

The claim of exemption is GRANTED, in part. The court ORDERS that judgment creditor may withhold $400 per month of judgment debtor Elizabeth Klarick’s net income.

Pursuant to CCP §703.580(e), the court clerk shall promptly transmit a certified copy of the order to the levying officer. Any funds held by levying officer are ordered released to judgment creditor to apply to the satisfaction of the money judgment.

BACKGROUND

On July 20, 2012, plaintiff Ford Motor Credit Company LLC dba Jaguar Credit filed a complaint against Utopia Retail Holdings, Elizabeth Klarick, and Alan Klarick for breach of contract, recovery of possession of personal property, and conversion.

On September 24, 2013, a stipulated judgment was filed against Elizabeth Klarick only whereby defendant was to make the 2007 Jaguar available for repossession and to pay the difference, if any, between the sale proceeds of the subject vehicle and the settlement amount of $48,000.

On December 17, 2013, a default judgment was entered against Utopia Retail Holdings and Elizabeth Klarick (stipulated judgment) for $80,245.21.

DISCUSSION

Judgment debtor/claimant Elizabeth Klarick requests an exemption as to all her earnings.

The claimant has the burden of proof to establish the exemption at the hearing. CCP §703.580(b).

In general, a creditor is allowed to withhold 25 percent of the debtor’s net income. CCP §706.050(a).

Claimant provided a financial statement. Claimant asserts that her take home pay is $1,550. Her spouse’s monthly income is $1,452. Rent or house payment and maintenance is $4,500, food is $800, utilities and telephone is $800, clothing is $100, insurance is $600, and entertainment is $200, for total monthly expenses of $7,000. The Sheriff’s Office is holding $252.67.

In opposition, judgment creditor contends that the $200 entertainment expenses are not exempt. Further, they have been and are willing to work out a payment schedule. Judgment debtor has made no voluntary attempts to pay off the judgment from 2013. Judgment creditor will accept $530 a month, or $265 per pay period.

Pursuant to CCP §703.580(d), the court concludes that the earnings are exempt in part. The court finds that $400 per month is reasonable after considering judgment debtor’s wages and expenses.

Therefore, the claim of exemption is GRANTED, in part.

Judgment creditor is ordered to give notice of this ruling.