Do I have to prove exempt assets once a default judgement is entered against me in a civil case?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Do I have to prove exempt assets once a default judgement is entered against me in a civil case?
I am aware of an exemption for a vehicle ($5,000), home equity ($50,000), and a “wild card” for unused exemptions(up to $5,000). I am being sued by a creditor for an unpaid unsecured loan and I do not wish to contest so it will be a default judgement. When that happens they will go after whatever assets they can I am sure. The thing is that all the assets I have (house with almost no equity, car valued a little less than $5,000, and motorcycle valued less than $5,000) should be exempt. Does that mean that all they can do is attach a lien to my home so that I must pay it if I try to sell the house?
Asked on August 13, 2010 under Bankruptcy Law, South Carolina
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
First, I would suggest that you do not allow the party to take a default judgement. Is there no way that you can re-negotiate the loan to make it easy to pay? Or to file for a Chapter 13 to do so? A judgement in South Carolina is good for 10 years. That is a long time. They will not only file a lien but garnish wages and attach bank accounts. They can come after personal assets as well. You will not be able to breathe financially.
Additionally, as I read the South Carolina statute on exemptions I believe that you may not be correct in the amounts. And the property "may be" exempt. If a judge rules otherwise you will be out of luck. Seek help with all of this from a debt counselor in your area. Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.