Garnishment Can I Use Wildcard exemption for debt collection

[GrumpyWillis]

Jurisdiction

Tennessee

Hello, i am being sued for roughly $4000 for a credit card I defaulted on in late 2017. I have become disabled since then and cannot work and have zero income. I am married and my wife has a job but she will not pay this debt and she isn't responsible for it.

I do have about $6,000 in my savings from an inheritance last year that I'm using to pay for my wife's masters degree, in fact we are about to make a $2k payment out of it in a week. And I have a car worth about $3800. I can't have the money used to pay this debt it is needed to pay for my wife's school.
My question is can I use the Tennessee $10,000 wildcard exemption and put on the form $6200 for my bank account and $3800 for my car? And would this exempt the debt collector from being able to collect on these if I did so? Most everything I see relates this exemption to bankruptcy but it seems the exemption is good for most any situation according to the form. Also when would I submit this form? When I submit my answer for the lawsuit or after that if and when a judgement is granted?

I have no other major assets besides these two things and like said before, zero income for the rest of my life most likely.

thanks in advance


Thanks

 

[Tax Counsel]

My question is can I use the Tennessee $10,000 wildcard exemption and put on the form $6200 for my bank account and $3800 for my car?

Let's start with this: what form, exactly, are you asking about? What do the instructions for the form, if any, say about it?

 

[GrumpyWillis]

Let's start with this: what form, exactly, are you asking about? What do the instructions for the form, if any, say about it?

The form is this one here: https://www.tncourts.gov/sites/default/files/docs/protected_income_and_assets_-_march_2013.pdf

 

[adjusterjack]

Most everything I see relates this exemption to bankruptcy

That's because you are reading internet guides instead of reading the Tennessee exemption statute 26-2-103:

Tennessee Code Title 26, Chapter 2, Part 1 (2020) - Exemptions :: 2020 Tennessee Code :: US Codes and Statutes :: US Law :: Justia

it seems the exemption is good for most any situation according to the form.

It is.

Also when would I submit this form? When I submit my answer for the lawsuit or after that if and when a judgement is granted?

That's addressed by 26-2-114(b). Before or after the judgment is final. Best to do it before, I reckon. Though you might wait until after you made that $2K payment and allocate some of the exemption to furniture and household goods.

Also check value guides and used cars on Craigslist for some justification of the $3800 value in case you're asked for documentation.

Tennessee Code § 26-2-114 (2020) - Procedure for Exercising Exemption — Notice :: 2020 Tennessee Code :: US Codes and Statutes :: US Law :: Justia

My question is can I use the Tennessee $10,000 wildcard exemption and put on the form $6200 for my bank account and $3800 for my car?

Looks like that's exactly what that form is for. Note that you can submit updated exemption forms as things change.

And would this exempt the debt collector from being able to collect on these if I did so?

Yes.

 

[GrumpyWillis]

That's because you are reading internet guides instead of reading the Tennessee exemption statute

That's because you are reading internet guides instead of reading the Tennessee exemption statute 26-2-103:

Tennessee Code Title 26, Chapter 2, Part 1 (2020) - Exemptions :: 2020 Tennessee Code :: US Codes and Statutes :: US Law :: Justia


Thank you for the response. I did actually read that exact page as I was doing my research and it appeared as though it was meant to be used for any type of judgment. BUT I wanted to be sure before I submitted it and looked silly because it was only for bankruptcy or something. Figured I could get a straight answer here as sometimes reading the law is confusing for me. And good idea on using the $2000 for other property. I actually don't own much but I could probably put my laptop on there and other miscellaneous stuff to just make sure I'm covered. Also I will be looking at multiple websites for my car value and printing it off, as well as seeing what similar year and models are selling for currently if there are any. It's an older car.

It will be a while before they get a judgement (hopefully) because I'm going to answer every complaint with a denial for lack of information and make them prove it as much as I can because the amount is ludicrous, the card I had only defaulted with $2700 on it. And it was previously with javitch block who represented synchrony and I guess synchrony bank decided to sell it to LVNV funding who was using what is likely their own company resurgent capital services to collect. I'm hoping for a miracle that they don't have the paperwork they need to prove anything. Maybe they just expect me to not answer the complaint and will stop pursuing once I answer or maybe I'll just prolong it. I read more than 90% of debtors never answer a complaint? That's wild.

Thanks again

 

[adjusterjack]

I'm going to answer every complaint with a denial for lack of information and make them prove it as much as I can

You might want to rethink that. Credit card contracts have attorney fee provisions. The judgment is inevitable. If you give their attorneys a lot of work it drives up the amount of the judgment.

The outrageous amount you are being sued for includes 5 years worth of interest at the default interest rate which was prominently displayed in the documents you got when you got the card. Likely somewhere between 25% and 30%.

 

[GrumpyWillis]

You might want to rethink that. Credit card contracts have attorney fee provisions. The judgment is inevitable. If you give their attorneys a lot of work it drives up the amount of the judgment.

The outrageous amount you are being sued for includes 5 years worth of interest at the default interest rate which was prominently displayed in the documents you got when you got the card. Likely somewhere between 25% and 30%.

Thanks for the replies. I will take that under advisement.

 

[army judge]

Have you considered filing a Chapter 7 bankruptcy?

You can file one pro se.

There are self help guides on the federal bankruptcy court site.

There are many such guides in easy to read booklet/pamphlet format.

Some are available for free, others at a very fair price.

Once you've actually filed your paperwork, the court issues a stay against ALL collection activity.

Your funds and assets are protected until your debts are fully discharged.

Good luck.

 

[GrumpyWillis]

Have you considered filing a Chapter 7 bankruptcy?

You can file one pro se.

There are self help guides on the federal bankruptcy court site.

There are many such guides in easy to read booklet/pamphlet format.

Some are available for free, others at a very fair price.

Once you've actually filed your paperwork, the court issues a stay against ALL collection activity.

Your funds and assets are protected until your debts are fully discharged.

Good luck.

I don't believe a bankruptcy will be necessary. This is my only debt I have. And if the $10,000 exemption works to keep them from garnishing my bank account and taking my old car, they will never see any money from me. In fact once I empty the account paying for my wife's masters degree in about 6 months I'm going to close that account out entirely. I don't have any other assets at all except clothes and a laptop which I'll put it on the exemption form too. Everything else is in my wife's name only. My wife is the sole provider and I'm disabled and qualify for ssi but my wife's income is too high for me to get it. Still working on getting permanent disability but it's a battle and have been denied twice. Now gonna work with a lawyer to get it. The debt collector cannot take anything from my wife in Tennessee, I know that much. My only confusion is on WHEN to file this paperwork for exemptions with the court. Do i wait for them to get a judgment? Or file it as part of my answer to the lawsuit?

Also I will be answering the suit with deny for lack of knowledge or information. I never made any agreement with this company LVNV. And I plan to make them show proof that I opened the original account, that they have sufficient proof they bought this debt, how they calculated the amount owed etc. As far as I know they did something incorrectly especially with the amount and chain of custody. I cannot in good faith answer this debt that I agree with the complaint because I don't agree with the amount and I don't know who they are. So far they haven't been willing to show me anything at all regarding how they came up with the amount (I've asked) nor have they been able to show me any statements or original documents. so maybe they will do it in court. To me if they get a judgment of 4k or 8k it doesn't really make a difference if I'm basically judgment proof. I will make them work for it I suppose.
Of course I'm open to opinions from everyone here and will listen to ideas. I'm just a little jaded by this debt because they refused $250 a month until the balance was paid when it was 180 days past due and they told me i needed to be more responsible and pay the debt in full and that I needed to be a man and pay. We settled a hdcpa lawsuit on that for $4000. I got $1000. That was with a company called javitch. And since then it seems like it's been sold through 4-5 different junk debt buyers.

thanks

 

[adjusterjack]

My only confusion is on WHEN to file this paperwork for exemptions with the court. Do i wait for them to get a judgment? Or file it as part of my answer to the lawsuit?

I told you that already. The statute says before or after the judgment is final. "Before" means any time before. You can file it with your answer if you want. Or file after you spend the $2000. And you can filed amended forms at any time as your finances change, or as the account gets depleted.

I'm disabled and qualify for ssi but my wife's income is too high for me to get it. Still working on getting permanent disability but it's a battle and have been denied twice. Now gonna work with a lawyer to get it.

"Gonna." Meaning you haven't yet? Make sure it's an SSDI lawyer with a lot of experience with SSDI claims.

Keep at it. My sister went through that, got a lawyer, and when finally approved she got a humongous check for retroactive benefits. The lawyer's fee is capped at 25% of the retroactive benefits but your monthly benefits are all yours.

Also I will be answering the suit with deny for lack of knowledge or information. I never made any agreement with this company LVNV. And I plan to make them show proof that I opened the original account, that they have sufficient proof they bought this debt, how they calculated the amount owed etc. As far as I know they did something incorrectly especially with the amount and chain of custody. I cannot in good faith answer this debt that I agree with the complaint because I don't agree with the amount and I don't know who they are.

There are numerous guides to filing an answer to a debt lawsuit. Some may have sample formats for you to use.

tennessee answer for a debt lawsuit at DuckDuckGo

So far they haven't been willing to show me anything at all regarding how they came up with the amount (I've asked) nor have they been able to show me any statements or original documents.

That's not usually accomplished until after you file your answer. Then the Discovery period starts.

Study up on the Tennessee Rules of Civil Procedure - Rule 26 - Discovery

Rule 26.04: Sequence and Timing of Discovery. | Tennessee Administrative Office of the Courts (tncourts.gov)

Start with 26.04 and use the drop down menu at the top for the ensuing rules.

Here's a sample "Request for Production of Documents." Use it. You don't have to pay for it unless you want to. You can just copy the format and adapt it to your requirements. Serve it on the plaintiff, file a copy with the court.

Tennessee Request For Production of Documents | US Legal Forms

Then if you don't get it, you file a "Motion to Compel Discovery."

Tennessee Motion to Compel Discovery - Tennessee Motion To Compel Discovery Example | US Legal Forms