Page 205 - Judgment Enforce Course

Dismiss without prejudice: To dismiss the present action, but leave
open the possibility of another suit on the same claim.

Equity: The difference between what an asset is worth and what is
owed on it. For example, if a car is worth $10,000 but you owe $6,000,
you have $4,000 equity in the car. If you owe $100,000 on your
house, but it is worth $200,000 then you have $100,000 equity in the
house.

Exempt Property: This is property that you can not take because it is
specifically excluded by law. This may include a work vehicle up to
$5,000 value, tools, retirement money, social security money, welfare
and unemployment money. States will have different laws on which
property is exempt. Check with your sheriff or court for a list of
exempt property in your state. It is also online.

Financial Statement: The debtor’s statement of dependents and
money earned and spent each month.

Follow someone to work: I have done this in order to locate their
workplace and then garnish their wages. If you do this, check your
local laws first.

Homestead Exemption: A homestead is a house lived in by the head
of a family. Many states give an exemption to people who have
homes. For example, in Delaware the homestead exemption is $5,000
per person (husband & wife). In North Dakota it is $80,000. In
Hawaii it is $20.000.

Importance of Homestead Exemption when trying to collect:
The reason homestead exemptions are important to you is because it
limits the amount of money a creditor can get from the value of the
home. If a homeowner owes $100,000 on his home, and the value of
the home is $200,000, then there is $100,000 equity in the home.
Normally if you do a forced sale of a home you could get the value of
the judgment up to the total equity. But a homestead exemption
protects part of the equity. So although there is $100,000 equity, if the
homestead exemption is $80,000, then you can get only $20,000.

Independent Contractor (IC): A self-employed person who contracts
out his work. For example, a person who prepares taxes is an IC. He

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