[vialna]

We have refinanced our home in order to pay off a judgment that was issued in 4-06. I am due to pay this court ordered judgement this week. I have talked to the jdb. who has told me that I should make the check payable to XX jdb company, i note that this amount is only for the judgment amount ordered...no addditional interest, or atty fees YET.
I want to know what I need to do before I send the check. Do I send a letter requesting a satisfaction of judgment once the check is received?
Do i state on the back of the check that this is payment in full for the debt due XX jdb??? Do I ask for all negative tl to the cra be deleted or marked paid as agreed?? I need some good input BEFORE I pay this judgment..

Tks to all who can respond...Vialna

[jlynn]

To anyone that knows - shouldn't she pay the judgment via the clerk's office?

[centex]

I would inquire about whether the check can be escrowed with the Clerk for the simple reason that you do not trust the defendant. Some states allow the matter to be paid through the Clerk.

[vialna]

my main issue is that my XXX is covered...do i put on the check that this is payment in full. do i send a letter requesting that all negative tradelines be changed or that it at least states paid as agreed??? I want to negotiate before i pay the money....also according to the judgement this is the amount owed plus atty fees, and interest per year...the owner of the debt has told me the check amount but that is only for the judgement amount...i dont want them coming back for atty fees and interest latter...or not releasing the judgment ect. latter because of not paying the atty fees and interest...yet i dont want to raise that issue and have to pay more ............v

[Qtip]

Bump for vialna!

[hannah]

V - get the phone number for the court clerk and pm it to me. I will call and find out the needed info without using your personal info.

[Enigma]

Before you pay the judgment, who is the judgment against?

Is that person head of household?

Does that person have unencumbered property?

Does that person own real property?

Has the judgment been recorded?

In any event, the Plaintiff will issue what was is called a Satisfaction of Judgment. You can prepare one yourself. I've attached one here, just change the court info.

[Enigma]

Can you post the details of the judgment - exactly what the judge ordered, minus personal info.

[ilovemydogs]

Originally Posted by vialna

We have refinanced our home in order to pay off a judgment that was issued in 4-06. I am due to pay this court ordered judgement this week. I have talked to the jdb. who has told me that I should make the check payable to XX jdb company, i note that this amount is only for the judgment amount ordered...no addditional interest, or atty fees YET.
I want to know what I need to do before I send the check. Do I send a letter requesting a satisfaction of judgment once the check is received?
Do i state on the back of the check that this is payment in full for the debt due XX jdb??? Do I ask for all negative tl to the cra be deleted or marked paid as agreed?? I need some good input BEFORE I pay this judgment..

Tks to all who can respond...Vialna

Hi
Are you the same person that was having a lot of problems last spring on DB?
You say you refinaced your home to pay off a judgement.
BEFORE you pay off anything, make sure that they really did get a judgement and to who?
Also the complete amount as of day the judgement was issued and also any and all fees incurred.
CALL your dleerk of courts or better yet go to the court house if you are able. Most clerks are very friendly and will help you. : )
DO NOT GIVE ANY MONEY YET.
The time to deal is BEFORE you give out your money, YOu can even do a deal to have the judgement removed from any and all records such as liens and cra's.
Make sure what you want and what you want deleted before you fork over ANY money.
Just because they got a judgement against you means not the end as they now need to get money from you and YOU have the cards.Bottom line is they want money and will be willing for a trade off YOUR WAY to get it ; )
Good Luck
ILMD

[jlynn]

Originally Posted by ilovemydogs

.Bottom line is they want money and will be willing for a trade off YOUR WAY to get it ; )
Good Luck
ILMD

Or, depending on the state, they can go grab the checking account where there is now money, or drag you in for a debtor's exam, etc. Be careful, you might just not hold all the cards.

[Enigma]

Originally Posted by jlynn

Or, depending on the state, they can go grab the checking account where there is now money, or drag you in for a debtor's exam, etc. Be careful, you might just not hold all the cards.

Jlynn is most correct, withdraw any monies you have in your account NOW!

Under FL law you have several protections:

http://www.alperlaw.com/asset_protection.html

Constitutional Asset Protection

Under the Florida Constitution one’s home is truly his castle, a castle that is impenetrable by creditors. Florida courts have liberally expanded definitions of homestead property which legally includes more than just a single family house. Condominiums are afforded full homestead protection as are almost any other type of primary residence such as a manufactured home or even a mobile home. In whatever form, a person’s equity investment in his primary residence cannot be seized by a creditor for any reason.

Article 10, Section 4(a)(1) of the Florida Constitution protects a person’s homestead residence from forced sale under process of any court. That section clearly states that no judgment or execution shall become a lien on homestead property. The Constitution defines homestead as one’s principal place of residence up to one-half acre within a municipality and up to 160 contiguous acres in any county in Florida. To qualify for homestead protection, a debtor must be a Florida resident and must reside on the homestead property.

What makes Florida’s homestead protection such a powerful asset protection feature are it’s geographical scope and its unlimited monetary protection. So long as a person’s primary residence is located outside the geographical limits of a municipality, the constitution protects homestead properties up to 160 contiguous acres. All property contiguous to the primary residence is under the homestead umbrella, even if the property comprises multiple lots and separate legal descriptions. A Florida resident can invest millions of dollars in large estate homes and farms and protect the full value of these luxury residences under the protection of Florida’s homestead provisions. The most noteworthy feature of Florida’s homestead law is its lack of any monetary cap on homestead protection. While many states around the country have homestead protection in their law, almost all other states have some level of valuation limit of homestead protect.

Common Law Asset Protection: Tenants by Entireties

Common law refers to law established through the precedent of case decisions by judges. Common law decisions in Florida, and in many other states, have afforded creditor protection to property which is jointly owned by a husband and wife as tenants by entireties. Any two individuals may own property, real or personal, as joint tenants with rights of survivorship. Either joint tenant may sell or alienate his interest in the joint property while both joint tenants are alive. After the death of one joint tenant, ownership is vested by operation of law in the surviving joint tenant(s). Because a joint tenant can voluntarily dispose of his property while he is alive, a creditor is able to execute on a joint tenant’s interest to satisfy the debts of such individual joint tenant.

Married persons may own property as joint tenants with rights of survivorship. In fact, most married couples purchase and own their assets in this form. Bank accounts and financial instruments owned by married persons are often designated as being owned jointly with rights of survivorship. A creditor of either spouse may seize the interest the debtor spouse holds in joint tenant property. Courts will presume that the debtor spouse owns a 50% interest in joint tenant property unless the facts demonstrate a different allocation of ownership. If the creditor seizes the debtor spouse’s interest, the creditor would become a tenant in common with the non-debtor spouse.

Unlike joint ownership with rights of survivorship, tenants by entireties ownership affords asset protection benefits. Tenants by entirety (“TE”) is a special form of joint tenancy ownership which is available only to married persons under the common law. This common law concept relates back to 18th century English concepts that a husband and wife were joined as a unit which unit is separate and distinct from either spouse acting individually. The tenancy by entirety is, conceptually, a separate entity of ownership which can act only with the consent of both spouses. While tenants by entireties has been abolished in England, it survives under the common law of many jurisdictions in the United States, including Florida, where it is well established in a long line of Florida case law decisions.

Both tenants must join in any transfer or alienation of TE property, and one spouse cannot transfer his interest in TE property without the joinder of the other spouse. A creditor of one spouse cannot seize involuntarily an interest in TE property which the spouse cannot transfer voluntarily. Therefore, a creditor of a single spouse cannot involuntarily seize property held by the debtor as tenants by entirety with his spouse. In the case where both spouses are jointly indebted to a particular creditor, that creditor can involuntarily seize TE property owned by the two spouses. TE protection exists only if a creditor has no rights against one of the spousal owners.

Any type of property, including all real property, tangible personal property, and intangible personal property, may be owned by a married couple as tenants by entireties. Whether a married couple owns property as joint tenants with survivorship or as tenants by entireties depends on the intent of the spouses. Married couples in Florida must formulate and also demonstrate their affirmative intent to own a joint property by the entireties in order to place the subject property under the umbrella of asset protection. The most prevalent issue in TE protection is proving the fact of entireties ownership.

In the case of real property the Florida courts presume that real property titled jointly between a husband and wife is intended to be owned as tenants by the entirety. Even where the deed to property does not state “tenants by entireties”, Florida courts presume that the real property is owned TE so long as the husband and wife are both listed as owners and no alternative form of ownership is designated on the face of the deed. For this reason, even where a husband and wife jointly own non-homestead property, that property will be protected against the creditors of one spouse on the theory that the property is owned by the entireties.

The nature of spousal ownership of personal property is more difficult to determine because (unlike real estate) there is no presumption in Florida case law favoring entireties ownership. Spousal ownership of personal property rests on the intention of the spouses which, in turn, must be inferred from available evidence. When an ownership of personal property is registered on a formal title, the nature of ownership is easily ascertained. Automobile ownership, for example, is determined by the designation on the title instrument. Where the car title reads “husband/wife, tenants by the entireties”, it is clear that the parties intend to own the automobile as TE.

For married persons, TE is attractive because it is the quickest and simplest form of asset protection against the creditors of either spouse individually. This form of ownership, however, does not provide secure asset protection over the long term. First, a divorce between the spouses immediately converts the TE into a joint tenancy between the two former spouses. In that case, the assets of the debtor spouse would immediately be exposed his or her creditors. Likewise, a death of one spouse terminates the TE and vests the property solely in the surviving spouse. If the surviving spouse has creditors, the protection afforded by the TE ownership is lost. Secondly, TE ownership creates problems in the areas of estate planning and estate tax avoidance. A married couple that owns most of their assets as TE may lose the ability to take full advantage of each spouse’s estate tax credit. This happens because, upon the first spouse’s death, all TE property passes to the surviving spouse by operation of law. Another estate planning disadvantage of TE ownership is that when the first spouse dies, he or she loses the ability to control the ultimate disposition of TE property. This occurs because the surviving spouse becomes the outright owner of the property on death and thereafter has the power to control the ultimate disposition of the property.

Statutory Asset Protection

The greatest number of asset protection weapons is contained within the Florida Statutes. Over the years, the Florida legislature has established numerous classes of assets which are statutorily exempt from claims of creditors.

* Salary or Wages Wages, earnings or compensation of the head of household which are due for personal labor or services, including wages deposited into a bank account, provided they are traceable and identified as such, are exempt from garnishment under Section 222.11 of the Florida Statutes. Effective October 1, 1993, Florida limited this exemption to $500 per week of net disposable earnings. Disposable earnings are defined as that part of earnings of a head of household remaining after the deduction of amounts required by law to be withheld. If gross wages an salaries in excess of $500 per week are protected under the statutes so long as the net disposable earnings which the wage earner takes home is less than $500 per week. Even the excess over $500 per week of disposable earnings cannot be attached unless the debtor agrees in writing. Thus, from a practical standpoint, the vulnerability of head of household wages applies only to the extent that a creditor requires a debtor to waive protection of his excess earnings in return for the extension of credit.
* Life Insurance Policies and Annuity Contracts. Insurance and other financial products are protected from creditors’ claims by Florida Statutes. These statutory exemptions make it possible for clients to invest well in financial products which afford asset protection as well as financial planning and tax planning and tax planning benefits. One class of protected financial investments is life insurance. Section 222.13(1) of the Florida Statutes provides as follows: "Whenever any person residing in this state shall die leaving insurance on his life, the said insurance shall inure exclusively to the benefit of the person for whose use and benefits such insurance is designated in the policy, and the proceeds thereof shall be exempt from the claims of creditors of the insured...” Notwithstanding the foregoing, whenever the insurance, by designation or otherwise, is payable to the insured, his estate, or to his executors, the insurance proceeds shall become a part of the insured’s estate for all purposes and may be subject to claims by the creditors of the deceased. In other words, where a debtors owns insurance on his own life and designates the beneficiary of said policies, upon the debtors death, the full death benefit shall be paid to the designated beneficiaries and shall be protected from the claims against the deceased.

While a Florida resident is alive, the cash value of any insurance policy he owns on his life or on other Florida residents is exempt from creditors claims. This exemption is true whether the policy is issued on the life of the owner or upon the life of a third party provided the third party is a resident of the State. Florida Statute 222.14 provides “(t)he cash surrender values of life insurance policies issued upon the lives of citizens or residents of the state... shall not in any case be liable to attachment, garnishment or legal process in favor of any creditor of the person whose life is so insured..., unless the insurance policy... was affected for the benefit of such creditor.” The protection afforded to the cash surrender value of a life insurance policy is only for the benefit of the owner/insured of said policy.

Perhaps the most popular financial products for asset protection planning are annuities. Florida Statute 222.14 provides that proceeds from an annuity contract issued to residents of Florida are not subject to attachment, garnishment or legal process in favor of any creditor of the beneficiary of the contract, unless the annuity contract was effected for the creditor’s benefit. Florida courts have liberally construed this statutory exemption to include the broadest range of annuity contracts and arrangements. Private annuities between family members are entitled to the exemption as are the proceeds of a structured personal injury settlement deposited into the debtor’s bank account. Bankruptcy court decisions in Florida have held that lottery winnings are exempt from levy if the winnings are paid in the form of an annuity to the recipient. Because of their relatively high interest rates, safety, an tax deferral features, annuities are a favored asset protection vehicle in Florida. There is no dollar limitation on the amount of assets which can be sheltered from creditors in the form of annuities.
* Pension and Profit Sharing Plans, IRAs. To prepare for retirement and to defer income taxation, more and more individuals, whether they be economically middle class or affluent, direct significant wealth into IRA accounts and other qualified retirement plans. In Florida, retirement money not only avoids current income taxation, but is protected from creditors as well. Florida Statute 222.21(2)(a) provides that any money or other assets payable to participant or beneficiary in a qualified retirement or profit sharing plan is exempt from all claims from creditors of the beneficiary or participant.

In Florida, our home is truly our castle, a castle that is impenetrable by creditors. The Florida Constitution exempts homestead property from levy and execution by judgment creditors. Florida courts have liberally expanded definitions of homestead property which includes more than just a single family house. Condominiums, manufactured homes, and mobile homes are also afforded homestead protection. The Constitution defines homestead as one’s principal place of residence up to one-half acre within a municipality and up to 160 contiguous acres in any county in Florida. To qualify for homestead protection, a debtor must be a Florida resident and the homestead property must be his primary place of residence. Property purchased as a future residence is unprotected until the property is occupied as a principal residence. A second home or investment property cannot be considered a Florida homestead. Only "natural persons" quailfy for homestead protection so properties titled in the name of irrevocable trusts, corporations, or partnerships will not qualify. Property owned by a living trust can e homestead property. A newly-enacted Florida Statute provides that property owned by a land trust may be homestead property.

What makes Florida’s homestead protection such a powerful asset protection tool is its unlimited monetary protection. A Florida resident can invest millions of dollars in large estate homes and farms and protect the full value of these luxury residences under Florida’s homestead law. Under a Florida Supreme Court ruling, a person can transfer unprotected, non-exempt assets to his homestead at any time by either buying a new home or reducing the principal balance of an existing mortgage and protect this money under the homestead umbrella, even if the asset transfer was clearly designed to hide money from creditor claims.

Homestead is not protected against tax liens, mortgages, homeowner association assessments, or from mechanics liens associated with labor or materials to repair or improve the homestead property. Also, the asset protection benefits of homestead should not be confused with the homestated tax exemption.

Homestead protection may not apply if the debtor files bankruptcy. Under the new bankruptcy law, homestead protection is available in bankruptcy up to $125,000 unless the debtor occupied his current Florida homestead property and previous Florida homestead properties for a continuous 40-month period. Also, transfers of cash into homestead within 10 years intended to defraud creditors may be challenged by the bankruptcy trustee. The new bankruptcy law has no effect on Florida's unlimited homestead protection outside of bankruptcy.

[Enigma]

Most married persons own property as joint tenants with rights of survivorship. Upon the death of one spouse, ownership is vested by operation of law in the surviving spouse. Many married people incorrectly believe that their jointly owned property is protected from their creditors. This belief is incorrect. Joint ownership with rights of survivorship offers no asset protection. A creditor of either spouse may seize the interest the debtor spouse holds in joint tenant property.

Unlike joint ownership with rights of survivorship, “tenants by entireties” ownership affords excellent asset protection benefits. Tenants by entirety is a special form of joint tenancy ownership which is available only to married persons under common law. To qualify as tenants by entiretites property, the property in question must have certain characteristics:

*
joint ownership and control,
* identical interest in the property,
* the interest must have originated in the same instrument,
* the interest must have commenced simultaneously,
* the parties must have been married at the time they acquired the property, and
* the surviivng spouse will own the property after either spouse dies.

In the case where both spouses are jointly indebted to a particular creditor, that creditor can involuntarily seize tenants by entireties property. Tenants by entireties protection exists only if a creditor has a claim against only one of the spousal owners.

In Florida, unlike most other states, all types of property, including all real property, tangible personal property, and intangible personal property, may be owned by a married couple as tenants by entireties. Whether a married couple owns property as unprotected joint tenants with survivorship or as protected tenants by entireties depends on the intent of the spouses. The Florida Supreme Court has said that any real or personal property owned jointly by a hustand and wife is presumed to be owned as tenants by entireties. A creditor could rebut this presumption by showing that the property ownership does not possess all six entireties characteristics or that the husband or wife indicated an intent to own the property in some other manner.

In Florida, tenants by entireties is the quickest and simplest asset protection for married persons. This form of ownership, however, may not provide secure asset protection over the long term. First, a divorce between the spouses immediately converts the tenants by entireties into a joint tenancy between the former spouses. In that case, the assets of the debtor spouse would immediately be exposed his or her creditors. Likewise, a death of one spouse terminates the tenants by entireties and vests the property solely in the surviving spouse. If the surviving spouse has creditors, the asset protection afforded by the tenants by entireties ownership is lost. Secondly, tenants by entireties ownership creates problems for estate planning and interferes with estate tax avoidance.

[Enigma]

We don't have enough information about your case to form an opinion, but consider this.

How much did you have to borrow and at what interest rate?

How much is that money going to cost you over the life of the loan?

Now consider bankruptcy as an option.

The judgment can stay on your CR for seven years. Thereby depressing your scores even though it is paid.

If you consider bankruptcy as a financial tool, and you are going to stay in your current home for the next 3-5 years, you may come out a head.

But you need to do some proper planning. Spend the dollars for an hour consulation with a bankruptcy attorney.

In my thread above I posted a link from the Alper law firm, give hin a call. DISCLAIMER - I have no connection with the firm, do not receive any compensation, in fact I've never met the man, but I read his materials and he seems to know what he is talking about.

Consider all options before handing over your hard earned money to a JDB.

BANKRUPTCY - Moral Issues

Most people who file bankruptcy are honest people who feel badly about not paying their debts. Many believe that bankruptcy is immoral or that they are doing something wrong. As their attorney, I understand how they feel about bankruptcy, but I believe they are being too hard on themselves.

Here are a few reasons why I believe bankruptcy should not be a moral issue:

*
People promise to pay their bills. People also promise to take care of themselves, their spouse, and their children. Sometimes things happen in life which make it impossible to keep both promises at the same time. If your family is more important to you than your creditors, then bankruptcy may be the right thing to do. You can always repay your discharged debts when you are able to do so.
*
Deuteronomy 15:1-11 enacted what is essentially the first bankruptcy law: At the end of every seven years, you must cancel debts. This is how it is to be done: Every creditor shall cancel the loan he has made to his fellow Israelite. He shall not require payment from his fellow Israelite or brother, because the Lord's time for canceling debts has been proclaimed" (NIV). In 1800, Congress used this law as the basis for the first bankruptcy statutes when it said that a person can file bankruptcy every seven years.
*
Walt Disney declared bankruptcy before he created Disney World in Orlando, Florida. If not for the bankruptcy laws, this entertainment giant would not have been able to achieve his dreams.
*
Congress enacted the bankruptcy laws to help you. The law recognizes that when you are swamped with debt, you are unable to provide for your family or to be productive in our economy. It is in your best interest, and in the best interest of the people who depend on you, to clean the slate and give yourself a fresh start in life.
*
You have probably already paid back your credit card debt through your payments which the credit card companies chose to label as "interest" and "penalties." The credit card companies are equally responsible for your bankruptcy. When you first encountered financial trouble, these creditors probably did not lower your interest rate or allow you to defer payments. The credit card companies are usually not understanding or sympathetic. These companies don't care if you file bankruptcy because they have already recouped any losses through their 18 percent to 26 percent interest rates.

[ilovemydogs]

Originally Posted by jlynn

Or, depending on the state, they can go grab the checking account where there is now money, or drag you in for a debtor's exam, etc. Be careful, you might just not hold all the cards.

While I agree with what you wrote, I do believe that a creditor with a judgement would rather get easy money.
As for the checking accounts savings accounts etc., I should htink one would have taken care of such things. ; )
If V is willing to pay off the judgement,why not try to negotiate?
Yes anything is possible, but in the long run I have found that money talks and if you show them the money they usually are willing IME to negotiate to your way of thinking,ie deleting TL's,reducing fees..
(I have never had a judgement though)
Of course we do not know the whole history of this deal,as if the judgement was in April how come till now to want to deal?
Good Luck V !
ILMD

[jlynn]

Originally Posted by vialna

I am due to pay this court ordered judgement this week.

Did you already promise to pay, or was this part of the agreement to close the refinance? Or am I just reading more into your choice of words in that sentence?