When Do You Fill Out A Memorandum Of Costs?

AppId is over the quota
AppId is over the quota

I am not a lawyer, I am a judgment referral expert (Judgment Broker). This article is my opinion, based on my experience in California, and laws are different in each state. Nothing in any of my articles can ever be considered legal advice.

In this article, when "MC-12" is used, it means a Memorandum Of Costs form. MC-12 is a California judicial council form. (See my other article on MC-12 forms.)

When a MC-12, or an equivalent form, motion, or affidavit is used, it means to document and record itemized judgment recovery costs with the court, which adds the itemized costs to a judgment debtor's debt.

In California, one needs to claim costs within two years of spending them, and costs are added to the judgment debt after these 3 things are done:

1) A MC-12 form is filled out, and a copy of it is usually mailed, and occasionally personally served on the debtor, by someone who completes a proof of service for it.

2) The MC-12 and the proof of service (POS) for it, is filed at the court.

3) The time limits, for the debtor to object to the MC-12 has passed.

In California, if you are claiming any kind of cost, the debtor needs to be served a copy of the completed MC-12. The debtor is allowed ten days if personally served, and 15 days if they are served by first class mail, to object to your MC-12.

Not every recovery expense can be added to a judgment. Every state has different laws. In general, examples of allowed expenses are the costs of getting or serving a writ, levy, garnishment, abstract of judgment, judgment debtor examination, UCC lien, etc.

One cannot claim attorney fees to enforce a judgment unless the contract the judgment was based on, had provisions for attorney fees. One also may not deduct postage, coffee, your time (if not a lawyer), milage, parking fees, or most other non-court related expenses.

In California, judgment interest is currently 10% simple interest per year, and is not compounded, except at renewal. In calculations, you need to truncate interest rates down, not round them up. (0.6039 becomes 0.603.)

Interest is not added to the principal amount owed on a judgment. Allowed costs are added to the judgment principal. After costs are added, they increase the rate that the judgment interest accruals at.

It is best to download the MC-12 form, or the equivalent form for your state, from a court web site, and fill the PDF out and print it. Second best is typing it, last choice is printing it out by hand.

Very few courts require copies of receipts for what is claimed. However, I've seen a few courts that required the receipts for abstracts and writs issued recently by the same court, which seems silly.

If you claim costs, you need to have someone else, over the age of 18 and not related to the case, print and sign their name on the MC-12's POS, and place the MC-12 in an envelope that is mailed to the judgment debtor.

You can pre-fill out everything, except at the person that serves the debtor prints and signs, which makes it easy for them. The POS (documenting that the MC-12 was delivered to the debtor) can be served personally, or (much more likely) served by first class mail.

If there are no costs, you can type "(No proof of service required - No costs, interest Only)" in the "My Address" area near the top of the page, and sign and date at the bottom of the page. Some court staff do not fully understand the laws about this, and will want the MC-12 served even if there are not any claimed costs. Requesting a supervisor usually gets a MC-12 approved having no costs and no POS, when one signs the POS page.

When the MC-12 is filled out as much as you can (everything except the printing and signature of the person who will be serving it), make two copies of it, because one copy must be served on the debtor.

You must prepare a stamped envelope, with your name and address on the return envelope, and the debtor's last known address. You should do some due diligence to verify the address of the debtor is correct.

Do not put anything related to debts or judgments owed on the envelope. Self-sealing envelopes are best. Pages should be folded inward to preserve the privacy of the judgment debtor. You do not need a cover letter in the envelope, just the MC-12.

The person serving the judgment debtor must not be you. They can be a process server, someone at a mailbox rental store, a friend, etc. They may charge you. (If they do not charge you, consider giving them a tip once in while.) They need to sign page 2 of the MC-12, (I recommend lending them a blue pen to sign, which shows the original copy that the court needs), seal the envelope, and deposit the stamped and sealed envelope addressed to the debtor, in an active mailbox or the post office.

After the envelope is mailed, and the proof of service is signed, make a copy of the page signed by the person who served the judgment debtor. Be sure you have 2 complete copies of the MC-12, with the first page and the POS pagestapled together.

Mail or bring both copies to the court. They will stamp both, keep the original copy, and return the other copy to you. Keep your copy, for your records.

http://www.judgmentbuy.com/ - is the best and fastest judgment solution, where Judgments quickly get Purchased or Enforced by the best!

Mark Shapiro - Judgment Broker - Free leads for Judgment Enforcers and contingency collection attorneys.

SOURCE : http://goarticles.com/article/When-Do-You-Fill-Out-A-Memorandum-Of-Costs/5479703/