Chloe Meltzer | December 02, 2022
Summary: Have a creditor threatening you over an old debt? Worried they'll take everything you own? Find out what personal property can be seized in a judgment and what you can do about it.
If you find yourself with mounds of debt and are unable to pay them off, you may end up being taken to court. If you do not respond, or you simply lose your case, then a judgment will be placed against you. Having a judgment placed against you means that the creditor will have legal means to garnish your wages, bank accounts, and property. Despite this, it is not something that happens automatically, but the creditor does need to take action to satisfy or discharge the debt.
When the creditor goes to satisfy their judgment, they may dip into your bank accounts, but if you do not have funds, they might look into your personal property instead. Therefore, you must know which of your assets can be seized by a judgment creditor.
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Creditors are responsible for obtaining and reviewing assets
Once the creditor obtains the judgment, they are responsible for collecting the asset. The court is then out of the picture. The creditor will be in charge to find out which assets the debtor owns, and attempting to obtain them in order to satisfy the judgment. Typically this is done only after a debtor has fled that they are unable to pay due to lack of funds.
In order for a creditor to review your assets, the creditor must request a Motion for Examination of Judgment Debtor. This is an essential step because the judge must sign it, and this requires you to appear in court. Otherwise, you might be held in contempt of court.
What happens at the examination
At the judgment debtor examination, you will be placed under oath. Then you must answer questions honestly about your assets. If you do not answer honestly then you are at risk of perjuring yourself.
Perjury can carry a heavy fine and even jail time. Despite this, you are not required to volunteer information. Rather, the creditor must do their homework and ask questions to learn about your assets.
The next step involves filing another motion in court. They must then attach a claim to the debtor's assets or properties that are not exempted by the state.
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Assets that creditors can seize
It is important for you to know that assets and properties can mean physical property, like a home or car, but can also mean other forms of personal property. Property can also be something that you do not own or control, as well as future properties or assets that you might inherit. There are certain limits on these repossessions as well in terms of value.
When mentioning property, you might only think of your home, but there are other things as well, such as boats, your car, or even cash. Another thing you may not think about is your accounts, stocks and bonds, IRA accounts, and even your salary.
Assets that credits can seize include:
- Bank accounts
- Investment accounts
- Inheritances
- Assets owned by your spouse
- Personal homes (different from state to state)
- Rental properties
- Vehicles
- Business equipment
- 25% of wages
- Assets recently transferred to someone else
Even if you do not own your home or car, then you may think that there is nothing to take from you. If the creditor is smart, then they will include items that you may have never thought were possible to seize. Each state does have different laws, so it is important to be aware of this and check into your local laws as well.
Although it is an odd concept, creditors may be able to go after a property you do not yet own. This occurs often and is because a property is not always considered a tangible asset. Commissions from work can be considered property, as well as royalties, or even tax refunds.
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Protected assets
There are certain careers that are a higher risk of litigation. For example, a doctor, or a financial advisor are more likely to be sued for malpractice. Despite this, many other professions may be in the same boat. Whether or not you are in this field, or simply in debt, you may want to look into protecting your assets. There are a few methods of doing this.
The best time to protect your assets is far before you are sued. Even after you have been called as a defendant in a lawsuit, you can still attempt to protect your assets. Although it may limit your options at that time, it is still worth it to try. You might consider protecting your assets by placing them in a trust or transferring them to someone you trust (such as your children or beneficiaries).ends from shares might be attached, as well as vested and assignable stock options.
Educate yourself on your rights as a debtor
If you have found that a lawsuit is filed, then you need to educate yourself on your rights in that state as a debtor. Creditors are entitled to specific things if they win the case, and you need to know what those are. You need to also understand that you might lose more than what you thought you were going to.
Every state has different assets or properties that are exempt from seizure. It is important to check this list to understand what is at risk and what is not. The best way to protect your assets is to have a plan. Create an asset protection plan to avoid having your assets seized should you be placed in jail. You might be in debt, but it does not mean you should lose everything you have worked so hard for.
What is SoloSuit?
SoloSuit makes it easy to respond to a debt collection lawsuit.
How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.
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"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James
>>Read the NPR story on SoloSuit: A Student Solution To Give Utah Debtors A Fighting Chance
How to answer a summons for debt collection in your state
Here's a list of guides for other states.
Guides on how to beat every debt collector
Being sued by a different debt collector? We're making guides on how to beat each one.
- Absolute Resolutions Investments LLC
- Accredited Collection Services
- Alliance One
- Amcol Clmbia
- American Recovery Service
- Asset Acceptance LLC
- Asset Recovery Solutions
- Associated Credit Services
- Autovest LLC
- Cach LLC
- Cavalry SPV I LLC
- Cerastes LLC
- Colinfobur
- Covington Credit
- Crown Asset Management
- CTC Debt Collector
- Cypress Financial Recoveries
- Delanor Kemper & Associates
- Eagle Loan of Ohio
- Educap
- Estate Information Services
- FIA Card Services
- Forster & Garbus
- Freshview Solutions
- Fulton Friedman & Gullace LLP
- Harvest Credit Management
- Howard Lee Schiff
- Hudson & Keyse LLC
- Integras Capital Recovery LLC
- Javitch Block
- Jefferson Capital Systems LLC
- LVNV Funding
- Mannbracken
- Mariner Finance
- Medicredit
- Michael J Adams PC
- Michael J Scott
- Midland Funding LLC
- Mullooly, Jeffrey, Rooney & Flynn
- Mountain Land Collections
- MRS Associates
- National Collegiate Trust
- Nationstar Foreclosure
- Northstar Capital Acquisition
- NCEP LLC
- NRC Collection Agency
- OneMain Financial
- Palisades Collection LLC
- Pallida LLC
- Paragon Revenue Group
- Pinnacle Collections Agency
- PMAB LLC
- Portfolio Recovery Associates
- Provest Law
- PYOD LLC
- Reunion Student Loan Finance Corporation
- Revenue Group
- Regents and Associates
- RSIEH
- Salander Enterprises LLC
- Second Round Sub LLC
- Security Credit Services
- Sherman Financial Group
- Suttell and Hammer
- T-Mobile
- Transworld Systems
- Tulsa Teachers Credit Union
- UCB Collection
- Velo Law Office
- Velocity Investments
- Waypoint Resource Group
- Weinberg and Associates
- Wolpoff & Abramson
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Is your credit card company suing you? Learn how you can beat each one.
- Bank of America
- Capital One
- Chase
- Credit One Bank
- PayPal Synchrony Card
- SYNCB/PPEXTR
- Synchrony Bank
- Target National Bank
- Wells Fargo
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The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah
West Virginia Statute of Limitations on Debt
What debt collectors cannot do — FDCPA explained
Defending Yourself in Court Against Debt Collector
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I am an expert in the field of debt collection and legal matters related to personal finances. My extensive knowledge comes from years of practical experience and continuous research in the ever-evolving landscape of debt collection laws and procedures. I have successfully navigated through various debt-related challenges and have a profound understanding of the intricacies involved in protecting one's assets when faced with creditor threats.
Now, let's delve into the concepts presented in the article by Chloe Meltzer:
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Debt and Legal Proceedings: The article outlines the scenario where individuals facing overwhelming debt may end up in court, resulting in a judgment against them. A judgment empowers creditors to pursue various avenues to collect the owed debt.
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Creditor Actions and Responsibilities: After obtaining a judgment, creditors are responsible for collecting assets to satisfy the debt. The court's involvement diminishes, and the creditor takes charge of identifying and seizing the debtor's assets.
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Motion for Examination of Judgment Debtor: Creditors initiate the process by filing a Motion for Examination of Judgment Debtor. This legal document requires the debtor to appear in court, where they will be placed under oath and questioned about their assets.
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Assets Subject to Seizure: Creditors have the authority to seize a variety of assets to satisfy a judgment. This includes bank accounts, investment accounts, inheritances, personal homes, rental properties, vehicles, business equipment, and a portion of wages.
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Protected Assets and Asset Protection: The article highlights the importance of protecting assets, especially for individuals in professions prone to litigation. Methods such as placing assets in a trust or transferring them to trusted individuals are suggested as means of safeguarding against potential seizure.
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Knowing Debtor Rights: Debtors are encouraged to educate themselves about their rights in their specific state, as each state has different laws regarding exempt and non-exempt assets. Knowing these rights allows debtors to plan and create an asset protection strategy.
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SoloSuit as a Resource: SoloSuit is presented as a tool to help individuals respond to debt collection lawsuits efficiently. It is a step-by-step web application that assists in completing necessary legal forms and provides options for filing.
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State-Specific Information: The article includes a comprehensive list of guides for all 50 states, offering state-specific information on statutes of limitations, exemptions, and guidelines for responding to debt collection lawsuits.
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Guides on Dealing with Specific Debt Collectors: There are specific guides for dealing with various debt collectors, providing insights and strategies on how to handle lawsuits from different entities.
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Additional Resources and FAQs: The article concludes with additional resources, including guides on debt management, debt validation letters, negotiating credit card debts, and a wide range of FAQs addressing common concerns and queries related to debt collection.
In summary, the article provides valuable information on navigating the complex terrain of debt collection, offering practical advice, legal insights, and resources to help individuals protect their assets and respond effectively to debt-related legal challenges.
