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Bank garnishments are the first method to attempt, if you want to collect a judgment. That being the situation, the first info to attempt to find is where the debtor banks. Most debtors don't have safe deposit boxes at their bank (or Safety Deposit Boxes - SDBs), yet some will. Bank garnishments need a writ from a court. My articles are my opinions and are not, legal advice. I'm a judgment referral expert, and not an attorney. When you ever want a strategy to use or legal advice, please contact an attorney.
Even if you are sure that the debtor keeps a bank safety deposit box (SDB), they are costly to garnish. Garnishment instructions should request money from a debtor's bank and checking accounts first; and then to check for any safety deposit boxes in the name of the debtor. At this time, there's a choice to make, whether you should take a chance with the worth of the contents of what's inside the SDB. When you can afford to pay the additional costs of having the Sheriff garnish the debtors SDB, it might be a good idea to specifically requesting the SDB contents with the garnishment, as it is served on the debtor's bank.
Similar to the way that certain judgment owners aren't aware that the contents of their debtor's safety deposit box may be garnished, some debtors believe that the contents of the SDB at their bank is hidden from creditor garnishments. Debtors might believe they can conceal certain money in a SDB, and nobody will ever find out. The judgment debtor might store any kind of valuables for example collectibles, cash, jewelry, documents about notes receivable, etc. This misconception by debtors, could be great news for judgment owners. Such assets may be available for a judgment owner's bank garnishment execution.
To garnish a debtor's safety bank safe deposit box, one must make a request that the Sheriff and the bank check for, and potentially seize the contents of the debtor's SDB, on the garnishment or execution paperwork filed at the court, or with the correct authority. After the Sheriff, or other proper representative of the court; serves the paperwork on the judgment debtor's bank, the contents of the debtor's SDB, is available for being used as payment toward repayment of the judgment.
To start a garnishment that includes a check for safety deposit boxes, letters of instruction to the Sheriff should be something similar to: "please have the Sheriff garnish all funds under the name of Dave Debtman SSN 555-555-5555 at MoneyGrubber bank, 999 Money Ave, Cupertino, CA, 90000, for the judgment debtor. Please garnish first any and all deposit and savings accounts, and then if the writ of execution is not fully satisfied, check for any and all safety deposit boxes in the name of the judgment debtor".
In California, CCP 700.150 defines how safety deposit boxes are garnished, and the way debtors get served notice. Government Code Section 26723 is referenced, which just specifies a charge of $125 to open a SDB. The debtor might be permitted to open their SDB voluntarily, and some will. Otherwise, the judgment owner needs to pay for drilling open and then fixing the SDB. Usually, this extra garnishment cost can be documented and added to the debtor's debt.
What happens if the garnishment locates a debtor's safety deposit box? When the Sheriff garnishment instructions include a promise that you will pay (or prepay) the additional costs of garnishing a debtor's bank safety deposit box, their SDB will get opened. Occasionally the key to open the debtor's SDB will be found, which often saves the judgment owner money. Way too often, a locksmith needs to be hired to drill the safety deposit box open.
After the bank's garnishment section responds with a "Memorandum of Garnishee", it will confirm any SDBs kept in the name of the debtor. Then, the Sheriff will send you a letter and give you (e.g.) 5 days to respond that you want the box(es) opened by force. If you do, you will need to pay the Sheriff some cash (e.g., $160 per visit) and most often, the bank more cash (e.g., $320 per box) to drill the box(es).
The bank offers the debtor an opportunity to come down to their bank to open their box voluntarily (however they will not be allowed to remove any contents). When the debtor doesn't take advantage of the bank's generous offer, their safety deposit box holder rights will be lost and the drilling happens on the chosen day. Some Sheriffs require a judgment owner to be present on this happy occasion, others don't.
Occasionally the debtor or a 3rd-party, claims some or all of what's in the safety deposit box doesn't belong to the debtor. In this case, the non-debtor co-owner would need to come forth and file their 3rd-party exemption claim with the Sheriff, showing the source of the assets or funds. When you suspect fraud, you might be able to subpoena records related to the ownership of the contents of the safety deposit box.
Will the cost of garnishing the debtor's SDB contents justify the cost? Anything could happen. Their SDB might be empty, or it might have stolen property, valuable coins, pills, or a whole bunch of $50 bills, or almost anything else which would fit. Hopefully, you'll find a treasure there to repay the judgment. The debtor can attend, along with anyone else that has something in the box. It's often fun to see the debtor's face when their (formerly private) safety deposit box is opened.
