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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 1611
Experience:  Run my own successful business/contract law practice.
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I have a debtors exam hearing, do I have to show up

Customer Question

I have a debtors exam hearing, do I have to show up
Submitted: 4 months ago.
Category: Business Law
Expert:  Taylor replied 4 months ago.

Hi and welcome to JA, my name is ***** ***** i would be happy to help you with your question.

Customer: replied 4 months ago.
My company ahs a judgement against us and now they have schedule a debtors exam hearing. I don't want to go and give up all of our financials, What happens if we don't show up? thanks
Expert:  Taylor replied 4 months ago.

simply put, YES you must show up. I will provide my answer in more detail below. When the creditor first sued you, you did not have to respond to its complaint or come to court if you did not dispute its claim. A debtor's examination is different. Once the creditor has obtained a judgment and the court orders you to appear at a debtor's examination, you must do so.

Expert:  Taylor replied 4 months ago.

Here is some more info about possible consequences if you do not show up, as well as some info on how to possibly get out of the hearing.

You can go to jail if you fail to appear for a debtor's exam. If you do not show up, the court may find you in civil contempt for disobeying its order. If you ignore the court's summons, it may also issue a warrant for your arrest. If you are found in contempt, the court may issue sanctions against you, which can include fines and jail time.

If you do appear for the debtor's exam, you must answer the judgment creditor's questions honestly. If you give false or misleading answers, you could be punished for perjury. Usually, you cannot refuse to answer its questions, unless the judgment creditor is being abusive or harassing or does not follow the court's rules and procedures. If you refuse to answer, then you could be found in contempt of court.

At the debtor's examination, you are not allowed to dispute the debt or raise arguments about the creditor's judgment, including whether you feel you owe the debt. The exam is limited solely to how the judgment creditor can collect the debt from you.

How To Avoid Contempt Charges

If you receive a summons, order or some other court-issued document requiring you to appear for a debtor's examination, do not ignore it. If the time and date of the debtor's exam poses a hardship for you (such as a work or school conflict), contact the judgment creditor's attorney to discuss rescheduling it for a more convenient date and time. If the judgment creditor's attorney refuses to work with you to reschedule the debtor's exam, then you should file a written motion requesting a continuance of the debtor's exam with the court.

How To Avoid Appearing at a Debtor's Examination

If you are served with papers requiring you to appear for a debtor's examination, you can legally avoid it in some of the following ways:

  • paying the judgment off in full
  • making alternative payment arrangements with the judgment creditor, or
  • filing bankruptcy, if you are eligible.
Expert:  Taylor replied 4 months ago.

Hopefully that wasn't overload and it answers your question. Do you have any further questions at this time? If so, i would be happy to answer them for you!

Expert:  Taylor replied 4 months ago.

Is there anything further i can do to assist you today?

Expert:  Taylor replied 4 months ago.

are there any further questions i can answer for you? Thanks for using JA, i would greatly appreciate a positive rating if you are pleased with my answer! Best of luck!