Judgments

Hi,
The purpose of this blog entry is to take some of the mystery out of judgments. A creditor's last option in collecting a debt is very often done by obtaining a judgment. When a creditor obtains a judgment, it means that a court grants the creditor an order containing multiple remedies to collect an unpaid debt.
To obtain a judgment, a creditor must do the following:
1) Creditor files a lawsuit in the jurisdiction where the debtor lives for the amount of the debt.
2) The lawsuit must be served on the debtor. This is usually done by a process server. If the debtor is successful in avoiding the process server for a period of time, sometimes the creditor may obtain service through publication in a local paper.
3) In most states, the debtor has 21 days to respond in writing to the lawsuit.
4) If no response is given, a default judgment may be granted to the creditor by the court.
5) If, after service, the debtor disputes any part of the amount that the creditor is claiming, he or she may do so through the courts. The matter will be resolved through the courts before judgment may be entered.
Following are some of the remedies available to a creditor if a judgment is obtained against a debtor:
1) Any real property owned by the debtor in the county that the judgment is entered will automatically have a lien placed against it. The creditor also has the right to register the judgment in any county in the state in which the judgment was granted in which the debtor might own property.
2) The creditor may garnish the wages of the debtor.
3) The creditor may garnish the debtor's bank accounts.
4) The creditor may seize any assets that are free and clear of liens or encumbrances.
5) The creditor may have the debtor brought in for examination and deposed of any other assets.
6) If the debtor moves out of state, the creditor may register the judgment in the debtor's new state of residence and proceed against the debtor.
This list of actions is not all inclusive, but gives an idea of liabilities which a debtor may incur if a creditor is awarded a judgment.
Until the next time,
Alan

Immediate Financial Planning After the Death of A Spouse

Hi,
It's impossible to concentrate on mundane matters after a loss of such magnitude. Yet, daily issues won't allow themselves to be put on hold until we are in the frame of mind to be able to think about them. So, it's essential to enlist the aid of a friend to help cope with these mundane concerns in order to maintain the function of the household. First and foremost, we need to gather as much financial information as we can which includes, but is not limited, to the following assets and liabilities:

1) Assets : bank accounts, brokerage firm accounts, misc. investments including royalties and other dividends not held by brokerage firms, retirement and pension accounts, life insurance proceeds, and any other assets.
2) Liabilities: mortgage or rent payment and due date, utility statements and due dates, credit card balances and due dates, misc charge card balances and due dates, any other misc loans with monthly payments, IE car loans, tuition etc., plus any other debt.

Sometimes a spouse is unaware of all assets, investments, and outstanding debts. Assets, investments and debts generate mail. Any unaccounted for assets or debts will surface over the course of the year in the form of correspondence from the entities.

After a death, people may be flooded with statements and bills which seem to materialize out of no where. Depending upon the circumstances, they may be from medical institutions, medical supply companies, ambulance companies, bills for transporting the deceased, etc., These bills are not emergencies. We will talk about verifying these bills and others tomorrow.

Immediate financial needs of the household include covering the mortgage/rent, utilities and food. Hopefully there are funds available to meet these basic needs.

Tomorrow I will talk about what to do if funds are not available to meet living expenses the month following the death of a spouse.
Until then,
Alan