§ 1208.Distribution of Proceeds of Writ; Right to Proceed Directly Against Money Or Property; Notice of Request to Release Original Attachment Or Execution

Title 4. Of the Enforcement of Liens · Chapter 3. Certain Liens and Priorities for Salaries, Wages and Consumer Debts · Last amended 1983 · Last verified July 29, 2026

In one sentenceSection 1208 pro-rates levy proceeds among preferred labor claimants when the proceeds fall short, and lets those claimants pursue their own attachments or executions directly against the defendant's property if the senior attachment or execution doesn't produce enough money -- or is about to be released -- to pay them.

Full Text of § 1208

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If the claims presented under Section 1206 and not disputed, or, if disputed, established by judgment, exceed the proceeds of the writ not disposed of before their presentation, such proceeds shall be distributed among the claimants in proportion to the amount of their respective claims after the costs incurred by the senior attaching plaintiff or judgment creditor in such action have first been taken care of.

If sufficient money to pay in full all preferred labor claims filed under an attachment or execution does not become available immediately upon the expiration of the time for dispute of such claims under Section 1207, any of the claimants, or their assignees, have the right to proceed directly against the money or other property levied on in individual or joint actions by themselves or their assignees against the defendant, and the attachment or execution under which the preferred claims were filed shall be considered set aside as far as such claimants, or their assignees, are concerned so as to enable them, or any of them, or any of their assignees, to proceed directly against any or all of the money or other property in question by means of their own attachments or executions; provided, however, that any money collected on behalf of any such labor claimant, or his or her assignee, on the basis of such new attachment or execution shall be shared in by the other preferred labor claimants who have filed claims that have not been disputed, or, if disputed, established by judgment, in proportion to the amount of their respective claims, deducting only the costs in the action brought by the said labor claimant, or his or her assignee, and the costs in the original action brought by the senior attaching plaintiff or judgment creditor.

If such senior attaching plaintiff or judgment creditor requests a release of his or her original attachment or execution, and the preferred labor claims filed under same are not released, the officer who levied the writ must first mail notices of such request to release to each of the labor claimants who have filed claims, or their attorneys, which notices must specify that unless the claimants bring attachment actions of their own and levy on the money or property in question within five days from the date thereof the money or property will be released from the attachment or execution; provided, however, that such officer may instead collect sufficient money on the basis of the original writ to pay off the preferred labor claims in full and then release the attachment or execution, but in no case shall the officer release the attachment or execution without first taking care of the labor claims until the five-day period has expired, unless the officer's costs, keepers' fees or storage charges have not been immediately taken care of by some of the parties involved. In any case it shall be lawful for a garnishee to pay over to the officer levying the writ any money held by the garnishee without waiting for execution to be levied and the officer's receipt for the money shall be a sufficient quittance, and the officer shall collect such money and immediately pay off the established preferred labor claims in all cases where it is possible to do so without additional court proceedings on the officer's part.

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Plain-English Summary

This section handles the money end of the § 1206 preferred labor claim process. If the claims filed under § 1206 — whether undisputed or established by judgment after a § 1207 dispute — add up to more than the levy proceeds available, those proceeds get split among the claimants in proportion to their claims, after covering the senior attaching plaintiff's or judgment creditor's own costs.

If there isn't enough money on hand right away to pay every preferred claim in full once the § 1207 dispute period runs out, the claimants (or their assignees) can go around the original attachment or execution and pursue their own, directly against the defendant's money or property. The original levy is treated as set aside as to them for that purpose. But there's a sharing rule attached: whatever a claimant collects through a new attachment gets shared proportionally with the other undisputed or judicially established preferred claimants, after deducting only the costs of that new action and the original senior action.

The section also protects claimants against a senior party trying to release the original levy before they've been paid. If the senior attaching plaintiff or judgment creditor asks to release the attachment or execution, the levying officer must first notify each labor claimant, giving them five days to bring their own attachment against the property before it's released — unless the officer instead collects enough under the original writ to pay the preferred claims first. A garnishee can also pay the officer directly without waiting to be formally levied on, and the officer's receipt is sufficient to close that out.

Frequently Asked Questions

What happens if the levy proceeds aren't enough to pay all the preferred labor claims?

The proceeds are distributed among the claimants proportionally, after the senior attaching plaintiff's or judgment creditor's own costs are covered.

Can a labor claimant pursue their own attachment if money isn't immediately available?

Yes. If sufficient money doesn't become available once the § 1207 dispute period expires, claimants may proceed directly against the defendant's property with their own attachments or executions.

What if the senior creditor tries to release the original attachment before labor claims are paid?

The officer must first notify the labor claimants and give them five days to levy their own attachment, unless the officer collects enough under the original writ to pay the preferred claims first.

Do claimants who bring their own new attachment have to share what they collect with other claimants?

Yes, proportionally with the other preferred labor claimants whose claims are undisputed or judicially established, after deducting the relevant costs.

Amendment History

Amended by Stats. 1982, Ch. 497, Sec. 78. Operative July 1, 1983, by Sec. 185 of Ch. 497.

Source & verification. Section text is reproduced verbatim from the California Legislative Information. Enacted by the California Legislature. Last verified July 29, 2026. · Official source

Also known as: distribution of proceeds preferred labor claims californiawage claimant attachment release california