JudgmentsIf the debtor gets a judgement against them, whether default or otherwise, the court will have a hearing to determine if the debtor has paid the amount of the judgment. When the debtor appears, the creditor's attorney will usually have the debtor fill out a list of assets. The debtor may also be required to list bank accounts, cerificates of deposits, stocks and property as well as other accounts where assets can be found. The creditor would also require that the debtor list sources of income: employment, benefits, business, etc. Once everything is listed the creditor may obtain a turnover order. At this point, the debtor would have to indicate exempt property or income. Most states allow certain types of income such as Social Security and government benefits to be exempt. Property can be exempt up to a certain amount. Some of these exemptions are similar to bankruptcy exemptions. If the debtor does not willingly pay the judgment, the creditor can garnish wages and have the sheriff seize property. The debtor can also be arrested and held in contempt of court for not paying. For the debtor, it is a good idea to not allow the creditor to get a judgement against them. |