Forced sale of home to satisfy $20,000 Judgment

[SBarsness]

What is the name of your state? Wisconsin

Can a sale of my residence be forced to satisfy a $20,000 default judgment? This debt is premarital and there is a primary mortgage holder on residence. Collection agency will not accept any monthly payment and I want to know how far they can go to collect. Also, can they take vehicles titled jointly?

Thank you to anyone who responds with answers advise.

 

[Ladynred]

What kind of equity is in the property ?
If there isn't enough equity, its unlikely they'll force the sale of the home as they'd have to pay off the mortgage and have enough left over to recover their 20K. If they can't do that, then forcing a sale won't get them anywhere. Its more likely they'll just place a lien on the property.

Its also unlikely they can take your vehicles. There are exemptions from judgments in every state, just like for bankruptcy. If you have any non-exempt assets, or assets above the exemptions, those are vulnerable to siezure.

Here's the WI exemptions:
http://www.thebankruptcysite.com/exemptions/wisconsin.htm

 

[SBarsness]

Forced sale of residence

House has 88,000 mortgage and was appraised at $120,000. Hos does the $40,000 exemption apply. If the $40,000 exemption is for equity than I am safe, for now. Our vehicles are valued at over 1,200, however they are both only 2 years old and financed through GMAC with high balances remaining on both so those should not be able to be attached either, correct?

I really appreciated your reply. Thank you very much!

 

[Ladynred]

You are correct, the 40K exemption protects your equity You're definitely safe on the house and so are your vehicles.

 

[HomeGuru]

For how long will the house be safe?

 

[SBarsness]

Forced Sale of Home

Thank you!!!

 

[Ladynred]

HG makes a good point. The equity you have is barely under the exemption.. how long is that going to last ??

 

[SBarsness]

Forced Sale

That $120k is based on appraisal by Appraiser we hired. The actual assessed value of home that we pay property taxes on and is matter of public record is $80,000.