California Legal Brief

The Rule of Bagby v. Davis is that California law applies to collection actions in California courts regardless of where the judgment debtor lives, and that a voluntarily surrendered life insurance policy is treated as matured (not exempt) unless the proceeds are necessary for the debtor's support, under circumstances where the debtor seeks exemption from levy on accounts funded by surrendered insurance policy proceeds.

The Rule of Lu v. Greely is that a judgment creditor cannot levy upon a third party's separate deposit accounts by claiming the account holder is the judgment debtor's spouse when the marriage is void ab initio due to bigamy, under circumstances where the affidavit of spousal relationship supporting the notice of levy is based on a bigamous marriage that was illegal and void from inception.