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HomeCorporations CodeGENERAL PROVISIONSCh. 5§ 18270 Creditor Claims Against Association Members

§ 18270 Creditor Claims Against Association Members

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 18270 Creditor Claims Against Association Members

This law says you can't take a member’s, director’s, officer’s or agent’s personal stuff to pay a debt of the unincorporated group they belong to unless the group itself was already sued and one of several special conditions is met.

Key Takeaways

  • •You must first get a judgment against the unincorporated association before going after a person’s personal assets for the same claim.
  • •If the association’s assets are already exhausted, in bankruptcy, or the person agrees, the creditor may go after the person’s assets.
  • •A court can also allow the creditor to go after personal assets if the association’s assets are clearly not enough or it would be too hard to wait for the association to pay.
  • •If the claim is against the person personally and not tied to the association, the creditor can go after the person’s assets right away.

Example

A local community garden (an unincorporated association) is sued for $10,000. The garden can’t pay, so the creditor wants to take the personal car of one of the garden’s members to satisfy the debt.

The creditor can only go after the member’s car if the garden itself was first sued for the same claim and either the garden’s money ran out, the garden is in bankruptcy, the member agreed to skip the garden’s assets, or a court says the garden’s money isn’t enough and it would be too hard to wait for the garden to pay.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 18270 Creditor Claims Against Association Members

(a) A judgment creditor of a member, director, officer, or agent of an unincorporated association may not levy execution against the assets of the member, director, officer, or agent to satisfy a judgment based on a claim against the unincorporated association unless a judgment based on the same claim has been obtained against the unincorporated association and any of the following conditions is satisfied: (1) A writ of execution on the judgment against the unincorporated association has been returned unsatisfied in whole or in part. (2) The unincorporated association is a debtor in bankruptcy. (3) The member, director, officer, or agent has agreed that the creditor need not exhaust the assets of the unincorporated association. (4) A court grants permission to the judgment creditor to levy execution against the assets of a member, director, officer, or agent based on a finding that the assets of the unincorporated association subject to execution are clearly insufficient to satisfy the judgment, that exhaustion of the assets of the unincorporated association is excessively burdensome, or that the grant of permission is an appropriate exercise of the court’s equitable powers. (b) Nothing in this section affects the right of a judgment creditor to levy execution against the assets of a member, director, officer, or agent of an unincorporated association if the claim against the member, director, officer, or agent is not based on a claim against the unincorporated association. (Added by Stats. 2004, Ch. 178, Sec. 10. Effective January 1, 2005.)

Last verified: January 10, 2026

Key Terms

judgment creditorunincorporated associationlevy executionwrit of executiondebtor in bankruptcy

Related Statutes

  • § 16101 Partnership Definitions And Terms
  • § 16504 Partner Interest Charging Orders
  • § 16601 Partner Dissociation Events
  • § 18250 Unincorporated Association Liability
  • § 18260 Enforcing Judgments Against Associations

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 18270.
View Official Source