If you owe money to a California court and don't pay, it becomes courtordered debt. Courts may send us your debt for collection.Withholding orders are legal orders we issue to collect past due income taxes or a bill owed to local or state agencies. In addition to the requirements of the California Rules of Court, no amendment of the Local. The process begins when a creditor sues you for not paying a debt and wins the case. The first step in collecting your restitution is to file an Order for Restitution and Abstract of Judgment (Form CR-110) with the court. In this article, we will take a look at the municipal bankruptcy of the City of San Bernardino and what led to the Chapter 9 filings. If the debtor party fails to pay an assigned debt and then the other party pays that debt, then an appropriate motion or Request for. Surrender, Reaffirm, Retain, and Pay After filing for bankruptcy, The debtor must determine how to handle their secured debt. Struggling with debt?