Creditors are getting more aggressive in efforts to find debtors' assets and are increasingly using the Debtors' Exam (DE) as a tool to accomplish that. A DE cannot be done until the creditor has a Judgment against you. Armed with the Judgment they can summon you (under Court Order) to come and reveal what your assets and income are. Keep in mind the DE will probably NOT be conducted before an actual Judge - Judges' time is considered too valuable for this type of hearing. The DE will probably be conducted in the lawyer's office with a Court Reporter there to record every word, or they may even simply mail the questions to you and require you to answer them and have the answers notarized under Oath.
Keep in mind the following principles:
1: Lying on the DE is Contempt of Court and a Judge CAN have you put in jail for that. There is another thread taht started with a news article about a person who spent 14 YEARS in jail on a Contempt Citation,so you don't want to lie. Here is the link to that thread: http://www.debtorboards.com/index.php/topic,18512.msg147533/topicseen.html#new
2: You are testifying under Oath as to a State of Facts that exists at the time you testified. What happens in the future, whether it be years after the DE or minutes after the DE is not what you are testifying to. As soon as you leave the DE you are free to move whatever assets you can to wherever you deem them to be safe. Since there was no Judge at the DE, there is no Judge there to order you not to.
The Flyingifr Method already has a section on protecting your assets (appropriately called "Protecting your A$$-ets") so I will not repeat what is there,just refer you to it. It is required reading if a creditor gets a Judgment against you. This essay deals with whet the creditor's attorney will ask you about. There is no uniform list of questions, but the ones found on the Orange County (CA) Small Claims Court web site seem pretty standard:
Debtorís Examination: Questions to Ask the Individual or Business
You should arrive at your hearing with a list of questions to ask the debtor in attempt to collect your judgment. Be sure to think about the answers to these questions. This may help you create additional questions
In a debtor's examination, you can ask the debtor:
1. What is your home address?
2. What is your home telephone number? Cell phone number?
3. Are you married or do you have registered domestic partnership?
a) If so, what is the first name, maiden name, and last name of your spouse or domestic partner?
4. Do you live in a leased apartment? A single family home? A condo? A mobile home? Whatís the address?
5. If you live in a single family, home, condo, or mobile home, do you own it?
6. If you live in a leased apartment, who pays the rent? To whom is it paid?
7. Is it paid by check? Is your rent/mortgage up to date?
8. Do you have any boarders or subtenants?
a) If so, what are their names and how much do they pay you each month?
9. Do you have a vacation home, recreational vehicle, or boat?
10. Whatís your occupation?
11. What's your social security number? (Note: this is a question that legally does not need to be answered)
12. Are you presently employed?
a) If so, by whom?
b) At what address? Where is the payroll office located?
c) What's your work telephone number?
d) What's the name of your supervisor?
e) What's your gross salary? What's your net salary? What payroll deductions are made?
13. Do you receive commissions?
a) If so, when are you paid?
b) How much is owed to you now?
14. Do you have any part-time employment?
a) If so, please explain.
15. Is your spouse or domestic partner employed or in business?
a) If so, what's his or her salary? What is the address of his or her workplace?
16. Do you own any stock or any interest in the business where you work?
a) If so, please explain.
17. Do you or your spouse or domestic partner have any checking or savings accounts?
a) If so, what is the name of the bank branch, and what are the account numbers and present balances?
18. Do you, your spouse, or domestic partner have a driver's license? For what state? What are the driver's license numbers?
19. How did you get here today?
20. What is the year and make of your car? Do you own it? Is it financed? By whom? What is owed?
21. Do you have any credit cards? Can you get a cash advance on any of those cards?
22. What type of retirement accounts do you have? Are you able to borrow against your retirement account?
23. Do you have life insurance? Is it a whole life policy?
24. Do you have any property, personal effects, cash, or other assets that you've not yet mentioned?
a) If so, please explain.
25. Do you understand that as long as the judgment remains unpaid, it accrues interest at the rate of 10% per year? Do you also understand that as long as the judgment remains unpaid, it is probably damaging to your credit rating? Do you understand that if the judgment remains unpaid, I have the right to examine you again in 120 days?
Questions to Ask a Business:
1. What is the name of your business?
2. What is your businessí address?
3. What is your businessí telephone number?
4. How many employees does your business have?
5. How does your business pay its employees?
6. Where is the payroll office located?
7. How many contracts does your business have?
8. Who are those contracts with?
9. Where are your corporate headquarters?
10. How many companies does your corporation own?
11. Where does your business bank?
12. What are your business bank account numbers and present balances?
13. Does your business have any credit cards?
14. Is there any equipment or furniture at your business?
15. Are there any computers at your business?
16. Are there cash registers at your business?
17. Does your corporation own any vehicles?
18. Do you have outstanding account receivables?
19. Does your business own any stocks or interests?
20. Does your business have any investments?
21. What kind of profit is your business making?
22. What is your businessí gross salary? What is your businessí net salary?
If you are curious about what questions wo0uld be standard in your State, US Legal Forms prints the forms many attorneys use. Here is their link: http://www.uslegalforms.com/judgments/
You can purchase your State's form from them for about $8 at the time of this writing.
Here is another list of questions, this time from the San Diego County (CA) Courts. This also lists documents you would be required to bring: http://www.junkfax.org/fax/action/debtorExamSubpoenaAndQuestions.pdf
Once again - what is truth at the time of the DE can be history ten minutes later. Unless a Judge orders you not to move any assets, you are free to do so.
STRATEGY: When you are at the DE and the attorney has called the DE to order and the Court reporter is banging away on his machine, work into the testimony the following statement: "I see it is now 10AM on the 25th of October (or whatever the date and time are). As the DE is ending, work into the record a similar Statement, "I see we are ending at 1:15PMon the 25th of October". When you withdraw your funds from revealed bank accounts, the withdrawal slip will most likely show the TIME of the withdrawal, which will be AFTER the DE ended, so no claim of Perjury can be sustained. It was the truth when you so testified and you can prove it from the Transcript and the bank withdrawal slip.