I have a loan with a bank that is secured by land. I tried to restructure the loan with them in terms that I could pay while trying to liquidate the property and satisfy the loan. They refused, filed suit, and I did not compley and received a summary judgement. The loan prinicipal was originally $160K. Now it is $191K (with interest and legal fees.)This loan was in Alabama. I live in Tennessee. They have now domesticated the judgement to Tennessee for $191K.What happens next. I should have got an attorney 3 months ago.
State/Country relating to question: Tennessee
To try to work with the bank.
Hello, my name is Ely. I am here to help you. There may be a slight delay between your follow ups and my replies as I type out a reply. Please note: (1) this is general information only, not legal advice; and (2) my function is to give you honest information and not to tell you what you necessarily wish to hear.I am very sorry for your situation. Please allow me to address your matter below, broken down by steps for clarity.What Happens NextBy filing a Petition to Register Foreign Judgment in Tennessee, they have taken a step in order to enforce the judgment in TN. In other words, Tennessee now treats the Alabama judgment as its own. At this point, they can then pursue you for satisfaction of judgment, and they can:-garnish up to 25% of any paycheck;-levy a bank account;-lien a titled property; and/or-attach and auction off property towards the judgment.ExemptionsUnder Tenn. Code Ann. §26-2-105, any IRAs you have are exempt. So are pension Plans, as well as VA, workman's compensation pay. You can also exempt a large variety of other items as well as $10,000. See here.SolutionsAside from exempting, you also have negotiation if they press these actions. If they do not agree, you have the choice of bankruptcy. Originally seen as the last resort option, this is becoming increasingly a choice for many Americans. The BK will wipe your debt and judgment clean. The good news is that while it lowers your credit score, this is temporarily and it begins rising again almost immediately and seven years later, the BK is taken off your record.Of course, you should retain counsel if you wish to do any of these steps (exemption, negotiation, bankruptcy). Let me know if you need any referrals, and/or you want leads on pro bono/low cost counsel.While the legal system tries to be inclusive of every possibility, sometimes people have limited avenues to seek relief. Surely, you prefer that I tell the truth rather than what you wish to hear. Because I do not get credit unless you press one of the top three faces, keep this in mind when rating my answer and please do not punish me for being honest. I understand that this may not be easy to hear, and I empathize.IMPORTANT INFO: I hope this finds you well. Please use REPLY TO EXPERT to keep talking, or RATE my answer when we are finished. Kindly rate my answer as one of the top three faces because this is how I get credit for my time with you. Rating my answer the bottom two faces does not give me credit and reflects negatively on me as an expert even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith. Do not worry, you may always ask follow ups free after rating.
Qualified attorney in private practice including business, family, criminal, and real estate issues.
I am a partner in a small business. I do not receive W2 wages but I do receive a check (guarranteed payment that shows up on a K-1) each year.
Can they go after that? And if they can....how do they do it?
Matt,They likely can, but only if they send out post-judgment discovery where you add that as a source of income (you'd be honor-bound to), and then, they would send a garnishment order to collect it... but this is up to them to do. Obviously, do not volunteer any information unless it is asked.
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