After a creditor obtains a judgment against you, they will naturally try to collect on that judgment. This means there’s a chance the Sheriff is going to make an appearance at your home on behalf of the creditor. But there are ways to protect your property. Typically, the history to this point is as follows:
The Creditor Files A Lawsuit
You’ll receive a notice from the court that a lawsuit has been filed against you by a creditor. This is typically after attempts from the creditor to collect monthly fees or settle on the debt with you, unsuccessfully. This notice will set a hearing date.
The Hearing Is Held
If you have legal grounds to object—it’s not your account, you settled the debt, etc—this is the time to make your case. For most clients, there are no legal grounds to object, so they don’t attend the hearing. As a result, a default judgment is entered in favor of the creditor. This judgment gives the creditor the right to pursue the funds through the legal system.
Notice Of Right To Have Exemptions Designated
If you receive a Notice Of Right To Have Exemptions Designated, your creditor is pursuing their legal rights to collect on the judgment. You have 20 days to respond to this notice, and it’s your chance to protect property from the creditor. There are Federal and State exemptions that assist you in protecting your vehicle and other belongings. You can find a list of them HERE. By returning this completed form to the court within 20 days, your exemptions will be entered into the court record.
Writ of Execution
Next, the attorney representing the creditor will obtain a Writ of Execution from the judge, which leads to the Sheriff showing up at your door to collect on the debt.
NOW WHAT??
Communicate with the Sheriff and the Sheriff’s office. Call the number on the Writ of Execution and ask for more time. The Sheriff will typically agree to a specific amount of time before coming to your home, especially if you are going to file a bankruptcy.
Won’t I Lose The Property In Bankruptcy?
In most cases, you can file a bankruptcy and keep your property. The filing of the bankruptcy freezes all collection attempts. In the meantime, your bankruptcy attorney will strategize with you to help ensure that you keep your property through the bankruptcy. Again, the exemptions mentioned above will be applicable.
If you’re facing a judgment, calls from creditors, or the fear that the Sheriff will show up, don’t delay. Call a Charlotte bankruptcy attorney today and get advice and help. I’m happy to provide a free consultation in bankruptcy to help you determine your options. You can reach me at 704.749.7747.