A judgment is automatically a lien on your real estate. However, a creditor cannot apply for a writ of execution to sell your property unless the equity in your property is greater than the legally protected (exempt) amounts of equity after deduction of any mortgages or security interests.
[ more ]Credit, Repossession and Judgments
When does a garnishment end?
A garnishment ends when the judgment with legal interest is paid or when your employment ends.
[ more ]How many creditors can put a garnishment on me at the same time?
Only one (1) creditor can garnish you at any given time, however, a garnishment from a creditor and a wage withholding order for child support can occur at the same time.
[ more ]Once the judgment or default judgment is entered, how can the creditor then collect his money?
There are several ways in which the creditor can then proceed to collect his money. One way is to serve a garnishment order on your employer or bank. Another is to execute a judgment lien against your real estate or personal property. The creditor may seek out any assets that you may have that could
[ more ]What if the creditor does not repossess the goods, what other options might they pursue?
If the creditor feels that the money owed is more than the goods would bring at sale, or that the debtor has the means to pay, they may opt to file suit rather than repossess the goods. An unsecured creditor (one that does not have collateral securing the payment of the loan) would file suit
[ more ]What of the goods are sold for less money than I owe the creditor?
When the goods are resold, they often fail to bring a high enough price, and the debtor still owes money to the creditor after repossession. Generally, the debtor can still be sued for the amount remaining on the debt. In addition, reasonable attorney’s fees and cost of repossession (if the debtor agreed to pay them
[ more ]What happens after the goods are repossessed?
After repossession, goods are usually sold to satisfy the debt. The creditor must give the debtor written notice of the time and place of the sale. The debtor can then pay the amount owed, find a buyer to purchase it, or be present at the sale to bid. The goods must be sold at a
[ more ]Must the creditor go to court to repossess collateral?
That depends upon the laws of your state. Most states allow creditors to repossess collateral without going to Court. However, the creditor may not cause a breach of the peace in attempting repossession, such as breaking into a house or garage.
[ more ]Can repossession occur even when I am current in my monthly payments?
Yes. Some contracts require the debtor to keep the collateral insured or to keep it in the state or county (this is especially true with automobiles). Repossession could occur if the debtor violates such terms of the contract.
[ more ]Can I avoid repossession by making the payments I have missed?
It depends on the contract. Many contracts have an acceleration clause. This means that when the debtor misses on payment all future payments become due immediately. If your contract has an acceleration clause, you must pay all the money owed to avoid repossession. However, many creditors are willing to accept the past due payments and
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