A “debtor’s exam” is a court order in which a creditor can ask you any questions about your finances in a judicial setting. When you receive a notice to attend an exam in the mail, you’re required to go. Otherwise, if you don’t appear, a warrant could be issued for your arrest.
This is understandably overwhelming, especially if you’re living with debts you can’t pay. Being asked to go to court can spark a lot of questions: What can my creditor ask me during the debtor's exam? How much personal information will I have to reveal? How will this impact my finances?
Let us answer some of these questions for you so that you can go into your debtor’s exam prepared:
What Can My Creditor Ask Me During the Debtor’s Exam?
- Employment information. This includes:
- Where you work.
- How much you make.
- How often you get paid.
- Information on all other sources of income.
- Family information, including:
- If you’re married or single.
- If you have any children.
- What valuable items you own, and where they are located. This includes:
- Vehicles.
- Real estate.
- Other valuables
- Where you bank.
- If your wages are already being garnished.
- If you would agree to a payment plan
What Will My Creditor Do With This Information?
In the order in which they’re likely to be done, your creditor may:
- Garnish your bank account.
- Your creditor has the right to freeze every penny in your bank account, up to the amount settled on in the judgment.
- Garnish your wages.
- Your creditor may garnish up to 15% of your take-home pay if you’re the primary wage earner for your family. If you don’t have dependents, they can take up to 25%.
- Seize your property.
- Your creditor may send the sheriff an “execution order,” which means the sheriff will seize specific property. This may include a vehicle, trailer, boat, or camper.
- Create a lien on your real estate.
- Your creditor may file a judgment in the district court in the county you own real estate. This will automatically create a lien of your real estate, which would have to be paid if you sell your property.
How Our Lincoln Bankruptcy Attorneys Can Help You Get Through This
A Debtor’s exam is stressful to go through, and it may feel like this circle of debt is never-ending. Please, don’t go through this alone: our Lincoln bankruptcy attorneys at Steffens Law Accident Injury Lawyers are here to help you. We will take you through the steps of bankruptcy, stopping debtor’s exams and your creditors’ follow-up on any collection efforts. We want to help you be free of this endless cycle.
Contact our office online or give us a call today at (308) 872-8327 so our Lincoln bankruptcy attorneys can answer any of your questions and put you back in charge of your finances.