subject: Timelines And Debtor Exemptions [print this page] When recovering a judgment, it is important to know the judgment debtor laws about exemption, with their time limits to respond to claims of exemption for your state. This article is my opinion and is not, legal advice. I'm a judgment referral expert, and not a lawyer. If you ever need legal advice or a strategy to use, please contact an attorney.
Debtor exemption laws vary in each state, and specify what assets are exempt, if the judgment debtor claims an exemption under the regional exemption laws. Most often, it's necessary for a judgment debtor to make a formal claim of exemption before the exemption becomes effective. If the judgment debtor does not make their claim during the time period allowed, they can't make a claim later, although they might do something else, as an example apply for bankruptcy.
Be careful not to spend money trying to recover judgments against judgment debtors who are judgment proof. Judgment proof is sometimes called execution proof, because no court garnishment execution can reach exempt, nonexistent, or hidden assets. Rarely, judgment debtors get protected due to their social position or circumstances. Most often, judgment proof debtors get protected by having no available assets showing, no matter how much hidden assets the debtor might possess.
If your debtor is actually poor, you can't and should not attempt to squeeze wine from an iPod. The right thing to do with this case is to hope they win money or get lucky some other way. One can keep their judgment renewed and check on the judgment debtor every few years.
Another way your debtor may be judgment-proof is if the debtor told you a fake name, and then you sued a nonexistent name. Another way is when you didn't sue the right entity. Another is in default judgment situations, where you couldn't do discovery to find additional assets, or parties you should have also sued. One example would be when you sued a man you lent money to; then with post judgment discovery, determined he had sent your money to his wife in some other state.
In judgment recovery, there isn't any room for wishful thinking. To enforce judgments, it's important to do something, as judgments don't enforce themselves. If you don't take action, spend time and usually money, you won't recover any judgment money. To get a chance to get paid, you have to devise an intelligent plan of action, and follow up by taking action.
With judgment enforcement, timeliness is very important. No matter how valid a legal position you have, being late almost always causes you to lose. In courts, occasionally debtors are allowed to slide when when they miss deadlines slightly, yet judgment creditors never get them.
If a judgment debtor or their lawyer files their motion to quash your levy, or claim the judgment debtor's property is exempt from levies, the judgment creditor has only a very short time in which to respond. If the creditor doesn't appear up at court, the debtor wins, even when their proof is missing and/or their assertions are silly.
Prior to a judgment being decided, all creditors are very aware of court deadlines, as they are prerequisites to winning their judgment. Post-judgment deadlines are also important.
