Recording Expenses On A Memorandum Of Costs

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 vary in each state. Nothing in any of my articles can ever be considered legal advice. This article explains how to fill out a MC-12 California judicial council form to record judgment interest and costs.

How to complete page 1 of a MC-12 form:

At the top of the form, put your name, address, and phone. If you are representing anyone as their attorney or are an assignee of record, print that here.

Next, fill out the court's name and address, e.g., San Francisco County Superior Court, and the court's address. Then print the plaintiff and defendant names. Make sure to use the precise same spellings and names as listed on the actual judgment. After that is the case number, which need to match the judgment.

After that are the number and calculation section:

A) Preparing and issuing an abstract of judgment. This is for what the court fees were for an unrecorded abstract. If you got abstracts for more than one county, you can multiply this amount. It's best to print "three Abstracts" here, if you claimed three abstracts. Choose the date that most of the abstracts were issued.

B) Recording and indexing an abstract of judgment. Same as above, for what the county recorder charged to record those abstracts.

C) Filing notice of judgment lien on personal property. In real life, this means the $10 spent to get a state-wide UCC lien from the secretary of state.

D) Issuing writ of execution, to the extent not satisfied by CCP 685.050 (specify county). This means what the court charged for a writ of execution in a particular county. If you got a writ for multiple counties, you multiply this amount. It's a good idea to write "three writs", if you claimed three writs. Be sure to list which county(s). If you are claiming , write in a date when most of the writs were purchased.

E) Levying officer's fees, to the extent not satisfied by CCP 685.050 or wage garnishment. This is for sheriff levy file fees, and for the costs of having a sheriff or a registered process server serve a levy on a judgment debtor's assets, savings, or wages. There is very little room here, so sum the total of what you spent on sheriffs and process servers, and pick a date that most of the money was spent.

F) Approved fees on an application for an appearance of a debtor, or other approved costs starting around CCP 708.110. This is for the court's charge to schedule a hearing, and the costs to serve judgment debtors or 3rd parties that possess, or know about the judgment debtor's assets. I am not an attorney, however in my opinion, the cost of a court reporter should be allowable here.

G) Attorney fees, if allowed by CCP 685.040. Adding post-judgment lawyer fees are not allowed here unless the judgment specifically awards attorneys fees. This usually means the underlying contract or agreement used, as the basis of the lawsuit that caused the judgment, specified that attorney fees were allowed for recovery of the debt.

H) Other: (Statute authorizing cost): This is the flexible area, for miscellaneous reasonable, explainable, and legally authorized expenses. Court clerks often allow reasonable-looking numbers, cites, and explanations here. The more money claimed here, and the more unusual the descriptions are, the more likely a debtor or their attorney will challenge them.

I) Total of the claims costs on this form. Add up the costs of all the items you claimed on the MC-12.

Section 2: All previously allowed post-judgment costs: This is the total listed on any previous MC-12 filings. If this is the first MC-12, type 0.00.

Section Three: Total of current and previous post-judgment costs: The sum of all previous and newly-claimed costs go here.

Section 4: Acknowledgement of credit: This is where you list the total of any money the debtor paid you, or any money that was received from the sheriff.

Section Five: Declaration of Accrued interest. This is where you affirm that you calculated (using non-trivial math) or had software to determine the current amount of interest owed.

Section 6: I am the: judgment creditor, agent for the judgment creditor, or attorney for judgment creditor. If one is the Original Judgment Creditor (OJC), or the lawyer working for the OJC, the choice of which box to check is easy. If you are the assignee of record, what box should be checked? Not being an attorney, I recommend checking the "I am the judgment creditor" box, as it seems to be the least-wrong choice.

Next, you date and sign the MC-12 form. If you are the assignee of record, type "assignee of record" near your name.

The second page of a MC-12 has the Proof Of Service (POS). This page must always be filled out at least partially, and must be served on the judgment debtor if there are any claimed costs on the current MC-12.

How to fill out page 2 of a MC-12 form:

Check the Mail or Personal Service box.

Section 2: Write in in your mailing address.

Section Three: Usually the MC-12 is mailed to the debtor. If the judgment debtor will be personally served, leave section 3-B blank. If the person signing the POS will be dropping the envelope off at a post office directly, check box A. If the person signing the POS will be dropping the envelope in a mailbox where mail is picked up daily, check box B.

To finish section Three, fill out the same judgment debtor name and address as is written on the stamped envelope to them. Write down the date of mailing, and the city and state.

If the judgment debtor was personally served, have the person who served fill out section 3 B.

Finally, at the end of the MC-12, is the declaration area. The person serving should put the date personal service was made, or the date the envelope was mailed. Usually the date is the same as the first date you put on this form. The person who served the debtor prints their name and signs the POS.