What to do when faced with a quote to discover assets

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A court-ordered payment plan must be repaid in three years. Honor it and stay in communication with the creditor if you can’t.

CHICAGO, ILLINOIS, USA, April 26, 2022 /EINPresswire.com/ — When a creditor gets a judgment on you, they do their best to find all of your assets. It’s not personal. It’s painful. Creditors do this because they know you are unlikely to repay the judgment. If you could, you would have done it already. It doesn’t matter if you’re unemployed, underemployed, or just don’t think you owe the amount. The courts have already decided that you owe what your creditor claims. And they have a court order allowing the creditor to search your assets to get paid what is owed to them. With this judgment against you, they are free to search for any assets you own to pay off the judgment. They will find your assets using something called “A quote to discover assets”.

What is a quote to discover assets?

A subpoena to discover assets is an intimidating legal term that describes a court document. This document requires the debtor to appear in court and answer questions about their property, income, and other valuables they may possess. You can’t lie about your strengths in this meeting. The court expects you to reveal this information and be honest about it, and not hide or omit assets. Transferring title to your car or home to your family to avoid naming it as an asset or storing your valuables in a storage unit in another state and lying about it are generally frowned upon by the courts and your creditors. Doing such things can make your legal problems worse. When you’ve dug yourself a financial or legal hole, the first step to getting out of it is to stop digging. Once your assets have been revealed, the judgment creditor may attempt to obtain that asset or income to pay the judgment if it is not protected by law.

What is an asset?

An asset is anything you own that has value. It could be your home, car, 401K, checking or savings account, income, jewelry, tools, boats, salaries, etc., in other words, anything physical or intangible that can be sold or used to generate money.

How to avoid seizure of assets:

There are two ways to legally avoid the seizure and sale of assets:

1. Pay the creditor what is owed to them

The best way to prevent property from being seized and sold is to pay the creditor the amount owed. Once paid, make sure they sign a satisfaction and release of judgment form. Make a copy for your records, then file the original form at your county court clerk’s office. This tells anyone with an interest in your debt that you have paid the judgment in full.

If the creditor does not sign the form or refuses to sign the form, you can file a motion asking the judge to sign the release. The clerk’s office will explain how to complete this form and what the next steps are.

2. Negotiate an installment plan.

In the eyes of the court, not having the means to pay the judgment is not an excuse for not paying what is owed. The creditor must always be repaid – either by offering an installment plan or by selling something that generates money to pay the debt.

Do not set up a payment plan verbally or over the phone. Sit down and figure out how much you can afford to pay, no matter how small and how much would be extremely difficult to pay. It may be only $25 a month, but the creditor wants $100. If $100 or $50 a month is straining available resources, it’s essential to know. If something else happens where payments cannot be honored, things will default to the creditor seizing the assets.

Put a proposed payment plan in writing. It doesn’t have to be fancy, but it should include the dates, names, time, and terms of the agreement between you. See if the judgment creditor will accept your plan. If you can get the creditor to agree to a payment plan, it can save you time, effort, and stress and prevent them from initiating wage garnishment or other legal action against you. Garnishment can put you in even bigger financial trouble. Have them sign the agreement and also keep a copy of the signed and dated agreement for yourself.

Fortunately, a creditor does not have the final say on whether or not to accept a plan. If the creditor disagrees with a plan, a petition can be filed asking the judge to approve it. If the judge approves the plan, he can stop all other collection efforts while payments are made.

A court-ordered payment plan must generally be repaid within three years. Whatever is agreed upon, it is best to honor it and stay in communication with the creditor if you cannot. The courts take these plans very seriously. So don’t offer an installment plan unless you’re sure payments can be made on time. Most creditors are willing to be a little flexible if there are legitimate issues delaying payment, but they still expect to be paid. When you are having difficulty dealing with a quote to discover assets, it is always recommended to seek the assistance of a professional bankruptcy lawyer to help you through the ordeal.

Richard Fonfrias
Fonfrias Law Group, LLC
+1 312-969-0730
write to us here

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