GARNISHMENTS IN CALIFORNIA The key for any company to be successful in collection efforts is to know what tools are available and how to go about utilizing them. Winn and Sims provides many tools for the collection of a debt. The following is a brief introduction to some of the most powerful collection devices that Winn and Sims has available to assist their clients. 1. BANK LEVIES Through a bank levy, Winn and Sims is able to collect money from a judgment debtor by garnishing unsuspecting debtors' bank accounts for a substantialreturn. A bank levy is an effective tool in seizing money owed to ourclients as well as a settlement tool. We frequently find the debtor scrambling to contact us in order to work out a settlement as soon as they realize that we are taking money directly from their bank accounts and placing it into our clients' trust accounts. 2. WAGE LEVIES A wage levy is one of the most effective ways to collect money from a debtor. Upon obtaining a judgment, we can immediately levy on the defendant's wages for up to 25% of the debtor's disposable income on each paycheck until the entire judgment is paid in full. Since quitting their job is not an option for many debtors, cash-out settlements or monthly garnishment payments can be expected. Frequent employment verifications are essential and records should include who verified the job information, with whom they spoke, and the company's exact name, address and phone number. 3. AUTOMOBILE LEVIES California law allows a judgment creditor to levy upon any motor vehicle owned by the judgment debtor. The vehicle or vehicles may be seized and sold by the marshal with the proceeds being applied to the judgment balance. Please note that careful consideration must be given to the equity situation with the vehicles. The Marshal will charge a minimum of $792.00 per vehicle, any lienholders must be paid, and the judgment debtor has a $1,200.00 exemption on one vehicle. 4. THE USE OF SUBPOENAS Subpoenas are a great tool that aid in a variety of ways in locating debtors or locating the debtor's assets. When employment information is unknown, information about a current outstanding financial obligation can lead to interesting information. A subpoena to the secured lending institution will enable us to obtain information such as where the debtor works, his or her home address, telephone number, any credit applications submitted, or bank accounts that may be levied. When employment information is known, we recommend that a Wage Garnishment be initiated rather than a subpoena. There are times, however, when a subpoena on an employer is necessary and can prove to be informative: 1)when the employer states that the debtor is no longer employed (we can find out where the last payroll checks were deposited, or the address to which the W-2 form was sent); 2) when there is a prior Wage Garnishment ahead of ours; 3) if the debtor has any stock in the company and how much that stock is worth; and 4) what benefits the debtor gets other than normal salary. If the last known address is a private post office, it is possible to subpoena the application to obtain the actual business or home address and phone numbers listed on the application. 5. LIABILITY OF A SPOUSE If the debtor has no known assets, but the spouse of the debtor does, we may execute against the community property assets of the debtor's spouse, including wages and bank accounts if the debtor was obtained during marriage. 6. ASSIGNMENT ORDERS California law allows for alternate methods to garnish money paid to judgment debtors as rental income or monies paid to independent or subcontractors. 7. SUMMARY As described in these sections, there are many forms of garnishments and many different methods that can be legally used in California to collect a judgment. If you have further questions, please contact Brian Winn or Ralph Sims.

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THIS IS AN ATTEMPT TO COLLECT A DEBT; ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE.