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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2820
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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If I turn in property used as collateral on a loan and the

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If I turn in property used as collateral on a loan and the creditor sells it and then sues me for the loan balance the collateral did not cover, and get a judgement in their favor, can they seize another asset I have...say a car or a boat that was not used as collateral? I am assuming they could seize any cash or possibly garnish my wage with a judgement, but can they come in and take something physical?

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

The creditor can enforce their judgment against any assets of the debtor that are not claimed as exempt.

Terry L. :

so yes, if you have a boat, they can place a judgment lien on it or ask the court to liquidate it to satisfy the debt.

Terry L. :

Wage garnishment is common

Terry L. :

They could take something physical, if court permits, and if it is of significant value.

Terry L. :

There would have to be a hearing before this can happen though.

Terry L. :

If you file bankruptcy before they sue, then the debt will be discharged.

Terry L. :

Let me know if you have any further questions.

Terry L. :

Thanks

Terry L. :

Terry

Customer:

Would they do this at the same hearing date as the original suit or would it be a separate hearing? How would they know what assets I have?

Customer:

Can I file for bankruptcy after they sue and have the judgement discharged?

Customer:

What assets can be claimed as exempt?

Terry L. :

This is called a citation to discover assets most of the time. it's a second hearing after the judgment gets entered.

Terry L. :

You can file bankruptcy at any time to stop the process, yes

Terry L. :

Your state allows you exemptions for suits and bankruptcy. You can google Colorado judgment/bankruptcy exemptions to get the list of what can be exemtped

Customer:

Last question...is the citation to discover assets hearing usually on a normal court schedule or is it expedited? And do they have to physically serve you in order to proceed with this hearing (with both hearings actually)

Customer:

Thanks.

Terry L. :

This site sets out service rules in Col.

Terry L. :

Good luck to you. Terry

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