Keeping your checking account and assets safe, even after a Judgment

[Big Time]

from this obscure blog:

http://debtcollectionlawyer.blogspot.com/search?updated-min=2009-01-01T00:00:00-06:00&updated-max=2010-01-01T00:00:00-06:00&max-results=7

The Motion To Set Payments--How To Overcome A Huge Court Judgment

You have a debt you can’t pay. It’s ballooned into a huge debt with unreal interest charges and now collection costs and attorney’s fees. You offered to pay monthly what you really can pay and the debt collector wouldn’t give you the time of day and offered you some outrageously huge payoff amount.

Now you’ve been sued and you are staring at the possibility of or already are saddled with a huge judgment. You are living with the fear that the debt collection lawyer is going to execute (obtain court authority to take and sell your car, your house or some other asset.)

There is another option besides bankruptcy court and one that allows to retake some control over an out of control situation. Almost every court (jurisdiction) has some form of what we call the "Motion To Set Payments" here in Tennessee. It is a court remedy that allows you to file paperwork with the court asking the court to set monthly payments on a judgment.

The person filing the motion must document to the court all of their income and debts and must justify that they are making the largest monthly payment they are capable of reasonably making. If the court grants their motion and allows them to make the monthly payments (usually directly to the court and not to the judgment creditor), then the judgment creditor cannot take any enforcement action such as executions, wage garnishment or seizures as long as you are current.

This is a powerful tool in the hands of the judgment debtor. It essentially allows you to set your repayment schedule at exactly what you can afford. It is a particularly useful tool if you are simply in a bad patch, unemployed and expect your fortunes to improve in time. Contact the court clerk and ask if they have a Motion to Set Payments or a similar motion. Most courts will and even if they don’t, the court will always hear a "motion for relief." The key is to be honest with the court and offer a reasonable payment based upon your current financial situation.

So this is basically like filing a Motion for Relief (from a Judgement) almost like compelling a Judgement Debtors examination for yourself in order to prevent them from emptying your bank accounts or selling your car.

I also wonder if someone who knows they are about to lose can file a Motion for a Protective Order to keep the evil CA's from immediately seizing bank accounts or ones only mode of transportation to and from work.