Claim of Exemption
by: Montana Legal Services Association (MLSA)
Claim of Exemption
Sometimes, you can't pay your creditors. A creditor can ask the court to give a judgment against you. A judgment says that you owe a certain amount of money to the creditor. After the creditor gets a judgment, it can take your money and property. This is sometimes called "executing" the judgment. That means the creditor will:
Garnish your wages,
Take money out of your bank or other financial accounts,
Take or sell your property.
The creditor can take the amount that you owe. But, certain money and property are exempt. That means the law protects it from creditors taking it.
What money and property is exempt?
It depends on the situation. But money and property that are usually exempt include:
·Social security benefits
·Public Benefits such as TANF (welfare), food stamps, etc.
·Veteran's benefits
·Disability or illness benefits
·Spousal support (alimony)
·Child Support
·Anything in an IRA (Individual Retirement Account) and interest as long as it was put in before the creditor got the judgment.
How do I protect my exempt money and property?
You have to ask the court to protect your property. You can do this by filing a claim of exemption.
What is a claim of exemption?
A claim of exemption is a request to the court. It is a request that you file at the court where the judgment was made. It asks the court to protect your exempt property.
How do I file a claim of exemption?
The creditor has to give you written notice when it tries to take your money or property. The creditor has to send the notice to your last known address. You have to file a claim of exemption with the court to protect your property. You have to do this within 10 days of the time the written notice is sent to you.
How does the 10-day time limit work?
You have 10 days after the written notice is sent to you to file your claim of exemption. This means that the time limit starts as soon as the creditor mails the written notice.
This applies no matter how long it took for the notice to actually get to you. This applies if the notice is sent to the last address the creditor knows and you have since moved.
The 10 days does not include weekends and holidays. If you don't file a claim within 10 days, the creditor can take your money and property.
Time can go very quickly. It is wise to file a claim of exemption as soon as possible after you get a notice. Or, call for more information.
Where can I get more information?
MLSA HelpLine: (800) 666-6899
Need legal help? Call the HelpLine. Open Monday-Friday from 9 am to 4 pm.
MLSA staff will help you apply over the telephone. If you qualify, you could:
get an appointment with an MLSA advocate, or
be referred to a free attorney, or
get signed up for a self-help class, or
get self-help materials.
www.MTLSA.org
Find copies of all our brochures online.
They are all available for free download!
Last Reviewed On: 03/20/09
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