2017-00217881-CL-CL

Pawnee Leasing Corporation vs. Sarah Ashley Petlowandy

Nature of Proceeding: Notice of Hearing on Claim of Exemption

Filed By: Bemis, Gary A.

This matter is continued on the Court’s own motion to April 16, 2019, at 2:00 p.m. in this department.

This is a bank levy in which the judgment debtor has filed a claim of exemption, contending that the moneys levied upon are from an exempt account. Judgment debtor does not cite to any code section pursuant to which the property is claimed to be exempt. Although the claimant has filed a financial statement, that is irrelevant as this is a bank levy and not a wage garnishment.

The claimant has the burden of proof to establish that an exemption applies. (Code Civ. Proc. § 703.580(b). The burden of proof is on the claimant to trace the funds in a deposit account to an exempt source. (Code Civ. Proc. § 703.080(b). Exemptions pertaining to funds in deposit accounts are available only for paid earnings, certain government benefits, and when other exemptions may be traced by the debtor into the debtor’s bank account. (See Code Civ. Proc. §§ 703.080, 704.070, 704.080.) Except as otherwise provided by law, all property subject to enforcement of a money judgment pursuant to Code Civ. Proc. § 695.010 et seq. is subject to levy under a writ of execution to satisfy a money judgment. (Code Civ. Proc. § 699.710.) It is irrelevant that non-exempt funds are considered “necessary” by the debtor for the necessities of life.

Claimant has to trace the funds to an exempt source using the lowest intermediate balance principle. (See Rutter Group, Schwartz and Ahart, California Practice Guide, Enforcement of Judgments and Debts section 6:850 – 6:852.)

This matter is continued to allow the filing of supplemental documents showing the funds levied upon are from an exempt source.

On or before March 26, 2019, claimant shall serve and file a declaration under penalty of perjury with supplemental documents that show the funds levied upon are from an exempt source.

On or before April 2, 2019, judgment creditor shall file and serve any response to the filing of the claimant.

The clerk shall send a copy of this minute order to the sheriff and the parties.