LA Judge Denies Creditors Adjustment Bureau Wage Garnishment Attempt

A Los Angeles judge ruled on April 8, 2026, denying an attempt by the debt collection firm Creditors Adjustment Bureau to garnish the wages of actress and television personality Denise Richards.

The legal dispute arose from the financial liabilities of Richards’ estranged husband, Aaron Phypers. The ruling prevents the collection agency from seizing Richards’ professional earnings to satisfy debts incurred by Phypers.

Default Judgment and Collection Efforts

The conflict began when the Creditors Adjustment Bureau started pursuing Aaron Phypers in 2022 regarding an unpaid loan. This pursuit culminated in 2024, when a judge granted the agency a default judgment against Phypers for $228,000.

Following the 2024 judgment, the collection agency attempted to use California’s community property laws to recover the funds. The agency filed a formal request with the court to garnish the wages of Richards and seize other assets, arguing that her financial resources should be accessible to cover the liabilities of her spouse.

Legal Implications of Marital Debt

The court’s decision to deny the wage garnishment underscores the legal nuances of asset protection and marital debt. In various jurisdictions, creditors frequently attempt to hold spouses jointly liable for debts that were incurred during the course of a marriage.

For Richards, the decision provides a layer of financial protection, ensuring that her personal income is shielded from the outstanding debts of her estranged husband as they navigate their separation.