Tag Archive for: writ of execution

Default Judgment – What To Do

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Default Judgment – What To Do

If you received notice of a default judgment, it most likely means that a creditor successfully filed a lawsuit against you and obtained the judgment in your absence. This judgment is just as valid as a judgment obtained in your presence. If you feel the default judgment was improperly obtained against you, you can file a motion to nullify or void the judgment. If you’re successful, the creditor will have to start the process over from scratch. However, if the debt is a valid debt, the creditor will prevail in a new lawsuit. In most cases, it is simply best to start analyzing your options in addressing the debt.

What Creditors Can Do With A Default Judgment

Once a creditor has a default judgment, they can start judgment execution. This is simply the process of using the North Carolina statutory rules for collecting on a judgment. You will know when a creditor is attempting to execute on their judgment because you will receive a Motion To Claim Exempt Property form. You have 20 days to respond to this form or you lose your right to protect or “exempt” property from the creditor. It’s important you follow the rules when submitting the form, and we can assist with this process.

After the 20 days passes, the creditor can request that the clerk of court issue a Writ of Execution. This is simply a document which directs your local Sheriff to attempt to seize property from you which is not exempt. This includes bank accounts, cars, jewelry, or any other valuable assets. The Sheriff will then proceed to sell the items in accordance with the statutory procedures.

What Are My Options In Fighting A Default Judgment

As mentioned above, appealing the judgment is an option, but not one which usually ends with a different result. Your two primary options are to engage in debt settlement with the creditor, or file a Chapter 7 or Chapter 13 bankruptcy to discharge the debt along with most other debt you have. Whether to settle the debt or file bankruptcy is both a personal decision and a financial decision. While our firm routinely orchestrates debt settlements for clients, there are some situations where financially speaking, a bankruptcy is a much better option.

Consult With A Charlotte Bankruptcy Lawyer

If you received a default judgment, you should not delay. Reach out today to request a free consultation. We will help you understand your options, the most likely outcomes, and make a decision as to how to move forward. We know it’s a stressful time. We have seen countless clients gracefully address debt situations and make a full financial recovery—your financial future is bright. We hope you choose to recover with us.

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Can Creditors Take Your Property?

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Can Creditors Take Your Property?

The short answer is yes, creditors can take your property. However, they have to go to great length to do so. Below, we ask a few questions, and then provide some answers. Call us if you have questions—we’re here to help! 704.749.7747.

Is There A Valid Debt?

The first question when deciding the answer to the question “Can creditors can take your property?” is whether there is a valid debt. In most cases, the answer is yes. As a result, the creditor is entitled to be re-paid, per the contract you signed with them.

Do They Need A Judgment?

Except for the repossession of motor vehicles, in most cases the creditor will need a judgment in place in order to take your property. A judgment is not that difficult to obtain. As a result, most creditors are successful in procuring a judgment. One thing to keep in mind is that a judgment requires a lawsuit. If you have not been served a lawsuit, this means there is no judgment. Once a creditor files a lawsuit, you have a chance to defend against it. However, if the debt is valid there is no reason to spend time and energy fighting the judgment. One thing you might consider is responding to the Complaint (lawsuit) with an Answer, and ask for a hearing. At the hearing, you can ask the judge for an extension of time to consider filing bankruptcy or pay the creditor. This will buy you 30-90 days before a judgment is entered.

The Creditor Has A Judgment—What’s Next?

After a creditor receives a judgment against you, their next step is to try to enforce that judgment. First, the creditor must send you a Notice of Right to Claim Exemptions. It’s very important you complete this form. As a result of completing this form, you will disclose your assets and also invoke the protection of your State Exemptions. These exemptions protect you in Chapter 7, Chapter 13, and in a situation where a creditor is trying to take your property.

Second, the creditor will need to obtain a writ of execution. This is a court order from the Sheriff to take possession of property. Consequently, you may now be facing the loss of property. Communicating with the Sheriff’s office about your writ of execution is a very good idea. The Sheriff will understand if you tell them you are requesting some time to file bankruptcy—they may even tell you they will give you 30 days before executing on the writ of execution.

Lastly, the Sheriff will carry out the writ of execution to seize property to be turned over to the creditor in satisfaction of the debt. Or, the Sheriff will order the sale of property to liquidate it in order to pay the creditor.

Foreclosure Is Slightly Different

All of the above is true for foreclosure, except the process differs slightly. A mortgage creditor does not need a judgment against you to file foreclosure. They must simply show in court that you are behind on mortgage payments. You will receive notice of a preliminary foreclosure hearing. You should attend this hearing and ask for an extension to file bankruptcy or get caught up on your mortgage payments. Ultimately, if you don’t get caught up, the court will set a foreclosure date. You have until 10 days after the foreclosure sale date to file a Chapter 13 to save your house.

How Can You Stop A Creditor From Taking Your Property?

Bankruptcy is the most secure way to stop a creditor from taking your property. The filing of a bankruptcy invokes The Automatic Stay in bankruptcy. This prevents creditors from attempting to collect a debt in any manner. If necessary to save an asset, you can file an emergency bankruptcy petition with the court, and our firm can help with this.

What If The Creditor Is Threatening To Take My Car?

This video about Vehicle Repossession by attorney Ian Lyngklip gives great instruction on how to protect your car from a lender who is aggressively attempting to take it. Again, the filing of a bankruptcy will stop this process altogether and we’re here to help.

Speak With An Attorney Today

If you have questions about “Can creditors take your property?” please call us at 704.749.7747. Filing bankruptcy will dramatically change your life for the better—we’ve seen it over and over with our clients. You can also click for a FREE CASE EVALUATION and we will reach out to you today. We know you have choices. We hope you choose to Recover With Us.

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Writ Of Execution

The purpose of this article is to explain the effect of a writ of execution, and help you understand your options which include filing bankruptcy.

Your Pain

If you’ve received a writ of execution, it’s because a creditor has a judgment against you and is trying to collect on that judgment. The writ of execution will be served or delivered on you by the Sheriff. Essentially, it gives the Sheriff the power to take assets which you own, in an attempt to pay off the judgment.

Prior to the writ of execution, you should have received a Notice of Right To Claim Exemptions, which is important to complete and submit in a timely manner. This notice allows you to exempt some or all property so that a Writ of Execution will not later harm you.

If the Sheriff shows up with the Writ of Execution, the best thing you can do is communicate with them. If you plan to file bankruptcy shortly, you should tell them that. You can even give them your bankruptcy lawyer’s name and phone number. Usually, the Sheriff will want to know if you have a bankruptcy case number—you don’t get one of those until you file; however, the Sheriff may also give you an extension to allow you some time to get your bankruptcy filed.

How We Help

As Charlotte bankruptcy attorney, my job is to keep creditors from seizing your assets. We can confirm that you are working with our firm to file a bankruptcy, and even tell the Sheriff’s office when we expect to file the bankruptcy. Additionally, we can help you understand the effect of a Writ of Execution, a Judgment or a Notice of Right To Claim Exemptions.

Mainly, if creditors have a judgment against you or are pursuing judgments, it’s time to talk to a Charlotte bankruptcy attorney about whether filing a Chapter 7 is the right choice for you. Whether you file with our firm or another firm, part of our job is helping you understand the options.

Next Steps

If you are having trouble with creditors and would like to know more about the option of filing a bankruptcy, give us a call. Phone consultations are free and we’re here to help. Most consultations can be done over the phone. You’ll get the guidance you deserve and you’ll be empowered to take next steps. Call 704.749.7747 or click HERE to request a consultation. We hope you choose to Recover With Us.

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