Requesting a Debtor's Exam, Documents, or Written Answers

You can expect a creditor who gets a judgment against you to take steps to collect by garnishing your wages, selling some of your assets or property, or levying on a bank account. But to do this, the judgment creditor needs to know whether you are employed, how much money you make, and what assets you own. This article explains the methods a judgment creditor uses to obtain information used to collect a debt.

How a Judgment Creditor Gets Information to Collect a Debt

The creditor has three primary ways to obtain this information from you:

• Get a court order requiring you to appear to answer questions about your assets. The meeting is often referred to as the debtor's exam.
• Require you to turn over documents related to your assets.
• Serve you with written questions that you must answer under oath.

The creditor will likely use all three methods available to find your assets if you don't pay the judgment. A judgment creditor who knows where your money and property are located can use collection tools to force you to pay. Learn how creditors enforce judgments.

The Debtor's Exam

If the creditor wants to conduct a debtor's exam, it must first file papers in court requesting permission, but the court will almost always approve the creditor's request. Once the judge approves the request, you will be served with a summons to appear in court and a document titled Order for Examination and Notice of Hearing or something similar.

In some states, you will also be served with a document requiring you to list all your assets. If you receive this document, you must fill it out completely. The Order for Examination is a court order and violating it is considered contempt of court.

What Happens at the Debtor's Exam?

The examination will usually occur in a hallway outside the courtroom or a witness meeting room where the creditor or its attorney will ask you questions. You must answer the questions truthfully. If the creditor later finds out you have been less than truthful, you may be found in contempt of court.

You have the right to object to any question you believe is inappropriate, and the location allows the participants to access the judge or magistrate for a ruling if a problem occurs. Unless you have a lot of assets, the examination usually takes less than 30 minutes, but it could be more lengthy, depending on the lawyer's skill and tenacity.

In some states, the exam will occur at an attorney's office. Depending on the jurisdiction, a court reporter might be present to transcribe the proceedings.

TIP. Don't bring anything of value with you to the examination. An experienced creditor's attorney will ask the judge to order you to turn over any cash, jewelry, or other valuables you may have with you. If you can't prove the property is exempt from attachment, the judge might order you to give it to your creditor. Most state's bankruptcy exemption laws also apply to creditor collection actions.

The Creditor's Request for Documents

The creditor can request that you provide it with documents. Instructions will specify when your answers are due and where you should send them. A creditor will often ask you to bring the documents to the debtor's exam.

Examples of documents the creditor is likely to ask for include:

• copies of your prior years' tax returns
• documents relating to the ownership of your home, auto, or other assets
• current bank statements
• documents relating to other debts, such as mortgages, liens, or credit card debts, and
• documents relating to your current income, such as payroll stubs.

You have the right to object to any request you believe is inappropriate. As with objections to written questions, the judge will decide if you have to answer, but it will be up to you to provide the judge with a good reason why you have objected. If you feel strongly that a question is inappropriate and answering it can create problems, you should consult an attorney.

If you do not produce the requested documents in the manner called for in the instructions, you can be held in contempt of court.

Interrogatories: Written Questions About Your Assets

In some jurisdictions, the creditor might be authorized to serve you with written questions about your assets. These written questions are often called interrogatories and will be accompanied by written definitions and instructions. Follow the instructions carefully. They will specify when your answers are due and where to send them.

The creditor will ask you questions about things such as:

• your employment status
• your current and past income
• the amount of money you have in your bank accounts
• whether you own real estate, and if so, how much it is worth
• the value of personal property you may own, such as jewelry, automobiles, or other valuables, and
• other debts you might owe.

You must answer the questions to the best of your ability and within the time stated in the papers. When you have thoroughly answered the questions, you will serve your responses on the creditor or its attorney. You should serve your answers by mail to the address listed in the requests. If you don't do so, you may be held in contempt of court.

What If You Think the Creditor Has Overstepped Its Bounds?

You can object to the request if you feel a question is irrelevant to getting information about your assets. For example, if the creditor asks you about your spouse's income or assets owned only by your spouse, you may want to object.

If you and the creditor cannot agree on whether you must answer the question, the judge will decide if you have to answer. You'll have to give the judge a good reason why you should not have to answer. If you feel strongly that a question is inappropriate and answering it can create problems, you should consult an attorney.