File Wage & Property Exemptions to Stop Collection*



Home \| Small Claims File Wage & Property Exemptions to Stop Collection* What is an Execution on a Judgment? If you have lost a lawsuit or received a default judgment then you may have also received a writ of execution. The act of getting an officer of the court to take possession of the property of a losing party in a lawsuit (judgment debtor) on behalf of the winner (judgment creditor), sell it and use the proceeds to pay the judgment is called an execution on a judgment. What are Exemptions? Under state laws there are exemptions as to what property can be taken and sold. The following are examples of some exemptions in Arkansas. Your Home Under state law, the homestead of the resident who is married or the head of a family is not subject to a judgment lien or an execution sale. There are some exceptions to this rule. Some examples of when the homestead exemption does not apply to judgments are: Purchase money mortgages Specific liens Laborers’ and mechanics’ liens How much of the property is exempt depends on whether the property is rural or urban and the value of the property. Contact the law library for more information. Personal Property If a debt is due as a result of a judgment on a contract, like a credit card, a person may claim $200 of his personal property, not including his clothing, if he is single or $500 of his personal property, not including his and his family’s clothing and his wedding ring, as exempt. If a person has more personal property than is exempt, he may chose which property will be exempt. Bank Accounts Money held in bank accounts is considered personal property. A garnishment may take all the money in a savings or checking account that your name is on even if this causes checks to bounce. Other Benefits A judgment creditor may not garnish or execute against: Social security, including SSD & SSI payments, Welfare, Veteran’s benefits, Unemployment compensation, Workers’ compensation benefits, State police and teachers’ retirement benefits, Health, life, accident and disability insurance or Annuity contracts This is generally true even if these funds have been deposited into your bank account. HOW DO I CLAIM EXEMPTIONS? How to claim an exemption depends on whether you are being garnished or executed against and whether you are claiming state or federal exemptions. A judgment creditor may not get a writ of execution until 10 days after the judgment is entered. A judgment debtor must then file a schedule of all his property and that property which he is claiming within 20 days from the receipt of the writ of execution. If the judgment debtor fails to file within 20 days, he will waive his right to the personal property exemptions. While the homestead exemption is not lost by failing to file the schedule on time, a judgment debtor must still claim the exemption by filing. This fact sheet is provided as a broad guide to help you understand how certain legal matters are handled in general. Different state courts may have different state laws. Before you take action, research this subject at your local library or local law library or talk to an attorney and follow his or her advice. Published by: Arkansas Legal Services	Authors: Sign Up for a free account Member Login Visitors: Link Exch Contact Us Terms of Use Legal Forms Online Download legal forms for all US states. Uncontested Divorce Forms Legal Name Change Forms Living Will Form Power of Attorney Form Auto Bill of Sale Form Residential Lease Agreement Partnership Agreement Promissory Note Form Last Will and Testament Forms Prenuptial Agreement Personal Bankruptcy Forms