§68.05 Supplemental Proceedings and Receiverships: Locating and Controlling Elusive Properties

• Jurisdiction: Washington

§ 68.05 SUPPLEMENTAL PROCEEDINGS AND RECEIVERSHIPS: LOCATING AND CONTROLLING ELUSIVE PROPERTIES

Powerful, if seldom used, techniques of enforcement are the supplemental proceeding to locate assets and the appointment of a receiver to control those assets.

[1] Supplemental Proceedings

Nonexempt property of the debtor can be located through supplemental proceedings brought against the debtor, authorized under Chapter 6.32 RCW and subject to CR 69. The proceeding is initiated by service of a certified copy of the order, any injunction against transfer of property, and the affidavit supporting such proceedings. The order can require the debtor or other witness to attend a special proceeding before the district or superior court in a county in which a judgment was entered, or in another county if either an execution has been issued to the sheriff or a transcript of the judgment filed with the court. RCW 6.32.120, .240. The proceedings are generally set before a judge who administers an oath. The debtor and creditor then adjourn for the examination, although the judge remains available to provide enforcement and subsequent orders as necessary. The order may require the debtor to produce records regarding his or her financial circumstances, including paystubs and bank records. RCW 6.32.010 allows the creditor costs of $25.00, and, if the debtor fails to appear, reasonable attorney fees. The court may find a debtor with actual knowledge who fails to obey an order, including oral orders by the judge, in contempt. RCW 6.32.180; Allen v. Am. Land Research, 95 Wn.2d 841, 850-52, 631 P.2d 930 (1981); Estate of Bremer v Walker, 187 Wn. App. 450, 456-57, 348 P.3d 1245 (2015).

Practice Tip: An order for supplemental proceedings may be drafted in the alternative, with the examination set in your office and removal to court provided in the event the witness either does not appear or is not fully responsive to the examination.

[a] Failure to Appear or Answer

If the debtor either fails to appear or proof is furnished under RCW 6.32.010 that there is a "danger" that the debtor may abscond, then an order for the debtor's arrest may be issued. The sheriff's procedures for this "civil arrest" differ from county to county, but upon the arrest by the sheriff (unpredictable as to timing and dependent upon the law enforcement office you are depending on), the debtor will be required to appear in court, generally on the next court day, and the attorney may have to appear upon short notice.

[b] Other Parties

Persons other than the debtor may be made parties under RCW 6.32.030 if they hold money or have knowledge concerning the property interests of the debtor. The marital privilege is inapplicable, and even disclosure of the amount, source, and...