Jump to content

Notice of exemptions


mooie
 Share

Recommended Posts

Has anyone ever filed a notice of exemptions prior to trial in an effort to derail their collection case?  I haven't read or found much on the subject, and maybe it doesn't work. Seems to make sense, however, when someone is completely judgment proof. Just thought I'd ask.  :) 

Link to comment
Share on other sites

26 minutes ago, mooie said:

Seems to make sense, however, when someone is completely judgment proof.

I know a few of the junk debt buyers (Midland for one) will allow a Defendant to submit financial proof that they are judgment proof prior to trial and they will drop collection efforts. 

However, there is some sense in allowing them to waste time and money to collect nothing.   Depends on what your tolerance level is.  Some prefer to just have it over.

As for the courts it would depend on state law but my guess is that the court doesn't care until a judgment is in place and there is a debtors exam.

Link to comment
Share on other sites

12 hours ago, mooie said:

Seems to make sense, however, when someone is completely judgment proof.

Keep in mind there is no such thing as judgment proof.  Even if you have no assets they can get a judgment.  What they can't do necessarily is collect.  

If you are on disability, SSI, or another source of income exempt from garnishment or seizure then you are collection proof.  However, if you are simply unemployed with no assets and fairly young then it can be in their best interests to get the judgment anyway because while they may not collect immediately; your employment situation could change or eventually most consumers want or need credit again and have to deal with the judgment to get it.  Especially if it is a mortgage.  Also in many states judgments are good for 20 years or more and renewable.  Not to mention that once they get one post judgment interest starts racking up on the balance as well.

Link to comment
Share on other sites

I'm retired and my sole income is my SS. I do have a mortgage on my home with just a small amount of equity in it. And my car is a beater. Everything is under the exemptions allowed. I doubt I will ever have need of a new mortgage but a judgment can affect the one I have. I just wondered how one would word such a letter.  I'd rather avoid the judgment if possible.

Link to comment
Share on other sites

5 hours ago, mooie said:

I do have a mortgage on my home with just a small amount of equity in it.

Then you are not collection proof and the chances of them dropping this are slim to none.  They can get a lien on the home and simply wait it out.  While you may not have enough equity to force a sale to cover a small judgment the creditor knows that having a lien on the home prevents refinancing and sale without clearing it.

5 hours ago, mooie said:

 I'd rather avoid the judgment if possible.

Without knowing who is suing you and for how much it is impossible to tell you how to fight it but if you own a home you better start fighting because they have probably already done a title search after seeing that the mortgage is on your credit report and are prepared to file the lien when they get the judgment.  Illinois is VERY creditor friendly.  You need a better plan other than hoping the creditor falls for a sob story letter about being retired on SSI.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.