Often the creditor will want to know whether or not the debtor owes debts to every other parties. If someone is judgment proof, this is often the stage at which the creditor finds that out. It could possibly then make a decision whether to carry on pursuing the complete value of the debt, reach a settlement Together with the debtor, or abandon its assortment efforts. The merits from the creditor’s declare have already got been resolved during the lawsuit, so a debtor can't problem the basis for your credit card debt or even the judgment at this time. You need to engage in a debtor examination When the creditor requests it. This differs from the collections lawsuit, wherein the debtor doesn't have to participate if they do not would like to protect the lawsuit. Because participation is required, a debtor can confront critical penalties if they do not cooperate with it. Penalties for Failing to Cooperate A debtor could deal with fines or maybe jail time if they fail to appear at a debtor examination or do not respond to inquiries truthfully.
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