You are sworn in by the judgment creditor in the debtor’s examination, who is then put forth in person to answer all the financial questions relating to his financial standing. This procedure was created solely for judgment creditors to see if there are other avenues to be able to collect judgments from you (i.e., garnishing wages, attaching funds in bank accounts, etc.), so they can form a picture of how they will be collecting the judgment when their returns do not materialize.
Creditor pressure through the debtors’ examination is mainly an important tool for creditors to compel the debtor to capitulate to an already-formed judgment against him.
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What Happens in Debtor’s Examination?
A debtor examination is where, under oath, you must answer all sorts of questions concerning finance and solvency about the owed amounts.
Questions put to a judgment creditor in examination may include those concerning any properties, real or bank accounts; any other debts owed to you and by how much; what is your work status, including salary, and where you work?
Where Is the Debtor Examination?
Debtor’s examination mostly takes place in court; sometimes it is done in a private office; at times, the creditor’s lawyer’s office.
How Long Does a Debtor’s Examination Usually Take?
On average, a debtor’s examination may last about 15-30 minutes. After that, the proper can leave.
Should I Be Nervous About a Debtor’s Examination?
Mostly, it is a safe zone. Should you have no wealth and no income, the judgment creditor can take from you; this might be as far as it can go with you. It may go ahead and leave you alone once it finds out that you have nothing to offer. Or, the debtor’s exam can be an excellent opportunity for you to negotiate some form of settlement with the judgment creditor’s attorney face-to-face.
It may be noted that creditors in some states have been abusing the debtor’s examination to confine individuals through jail sanctions as threats to force payment.
You Will Have to Go to the Debtor’s Examination
Once the creditor has gotten a judgment against such a debtor, that makes him or her appear for the debtor’s examination. Failing to show up and participate could get you in jail. If you don’t pay the creditor who just gained a judgment against you, you don’t go to jail. However, you may go to jail for not showing up. The court has the right to hold you in civil contempt for violating its order should you fail to appear. If you ignore the court’s summons, it may even issue a warrant for your arrest. In case of contempt, the court may impose sanctions on you, which include fines and even jail time.
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Attend the Debtor’s Interview and Answer Honestly Judgment Creditor’s Questions
If you show up for the debtor exam, you do answer the questions set forth by the judgment creditor honestly, which counts as perjury when they are made in a lying or deceitful manner. Usually, you cannot refuse to respond to an inquiry unless the judgment creditor or examining attorney is being abusive or harassing, or does not follow court rules and procedures — if you refuse to answer, then you may get found in contempt of court.
At the debtor’s exam, you are not allowed to disclaim the existence of the debt, nor base any argument on the principal debtor’s judgment you feel like you owe. The exam is solely regarding how the judgment creditor will collect the debt from you; it’s not about whether you owe it or not, or if you consider that you owe it.
How to Avoid Charges of Contempt?
So, once you get served a summons, order, or other court documents that require you to appear for a debtor’s examination, do not ignore it. If the time and date of the debtor’s exam are going to be a hardship for you, for example, while at work or school, tell the judgment creditor’s attorney about it and try to work something out to schedule it to a more convenient date and time. If the judgment creditor’s attorney refuses to cooperate in rescheduling the debtor exam, you should file a written motion requesting a continuance of the debtor’s exam with the court.
How to Avoid Going to Debtors’ Examination?
You ought to be allowed to serve your papers in this way to make a court appearance at a debtor’s examination:
- Total payment of the judgment
- Other arrangements for payment as agreed by the creditor
- Go bankrupt if you qualify
Bottom Line!
If you are anxious about debtor’s examination or have any other questions around debt collections, you might think about hiring a qualified lawyer at Bruner Wright PA. Our best lawyers will untangle for you your rights and obligations concerning debts. Contact us now!
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