Seizure of the Properties

Tax Experts for America
Free ConsultationContact Us

Seizure of the Property To Pay For A Debt

One way a creditor to collect your payment is through the seizure of the property for your debt. If a debt is secured, the creditor can seize the property even without going to court. On the other hand, the creditor must go to court on unsecured debt and get a judgment before taking the property.

After a court decides you owe money and give judgment against you, the creditor must wait 21 days before collecting it. One way to collect the debt is to get a Request and Order to Seize Property, a court order that tells a court-appointed officer to seize your property. The order expires after 90 days but can renew. Paying your debt within 21 days of the judgment will prevent the seizure of your property.

Judgment creditors can only seize the property to pay the debt:

  • The property you currently own
  • The property you own but do not have on hand
  • The property you recently gave away

A creditor can't take a property you do not own and have the right to sell or give away to pay for your debt.

Exemptions to Seizure of Property

A creditor cannot take all of your property and may be exempt from seizure, such as:

  • Household goods
  • Furniture
  • Books
  • Appliances
  • Tools
  • Vehicles

Other property that is always exempted:

  • Family pictures
  • Clothes
  • Amount of six months of heating costs
  • Burial plots
  • The court-appointed officer must let you decide which you will keep. You will have 10-days to choose, and the officer can seize all other things left. Also, you must have a list of inventory of all the taken possession.

    Sale of Your Seized Property

    After taking inventory, the officer will auction it. The creditor must post notice of the sale in three public places and must do this 10-days before the auction date.

    The officer will take fees from the sale, including:

    • Personal service fees
    • Mileage fees
    • Appraisal fees
    • Towing fees
    • Storage fees
    • Labor fees
    • Locksmith fees
    • Inspection fees
    • Advertising fees
    • Other costs or expenses related to seizure

    After the sale, the officer must give you a receipt for all the items that are seized and sold.

    Judgment Liens

    A creditor can attach a judgment lien on your real property to make sure it can collect a judgment against you. A lien is a notice that you owe a debt, and it is filed with the register of deeds where it is situated.

    Unlike a seizure of property and license revocation, judgment liens do not require the sale and seizure of your property first. A creditor can file the lien after 21 days the judgment is signed.

    For more information or to schedule a consultation, give Tax Experts For America a call now!

    Contact Us Now!