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Home » Forms » Small Claims Forms » Self Help » Small Claims » Collecting A Small Claims Judgment Or Contesting Collection » Contesting Collection Of A Small Claims Judgment

Contesting Collection Of A Small Claims Judgment

Find out what kinds of income and property a creditor cannot touch when trying to collect a judgment against you, what you need to do to protect that income and property, and what happens if your creditor objects.


Overview

If you lose a lawsuit, which can happen even if you do not appear in court, the winning party becomes the “judgment creditor” and you become the “judgment debtor.” There are two ways your judgment creditors can legally take your property or money (called “executing” the judgment) to make you pay.

  • Attachment. This allows creditors, with the help of the constable or sheriff, to take personal property or money belonging to you and sell it.
  • Garnishment. This allows judgment creditors to take something of yours that is in the hands of another person or institution, such as wages owed to you by your employer.

A judgment creditor cannot take certain property related to basic needs. This property is called “exempt” property. But just because your property is exempt, does not mean it is safe. As discussed below, you must take action to prevent the exempt property or income from being seized. The judgment creditor will not look out for your best interests. You must do that!


Q&A – Contesting Collection And Protecting Exempt Property


What types of money and property cannot be taken to collect a judgment?

There are certain types of income and property that a judgment creditor cannot take to pay a judgment. This income and property is called “exempt,” meaning it is exempt from the execution process under Nevada law. It includes:

  • Seventy-five percent of your take-home pay, or eighty-two percent of your take-home pay if you make less than $770 per week, or 50 times the minimum wage ($362.50 per week), whichever is higher.
  • Personal property not to exceed $10,000.
  • All money deposited with a landlord to secure a rental or lease agreement.
  • A tax refund derived from the earned income tax credit.
  • Unemployment benefits.
  • Workers’ Compensation benefits.
  • Welfare and Social Security (SSI).
  • Veterans benefits.
  • Amounts needed for court-ordered child support and alimony.
  • Vocational Rehabilitation benefits.
  • Certain federal and state retirement accounts.
  • Insurance proceeds.
  • Necessary household goods and yard equipment (maximum protection of $12,000).
  • Tools of your trade, profession, or business (maximum protection $10,000).
  • One vehicle, if your equity (the market value of the car minus how much you owe) is less than $15,000, unless the lawsuit you lost concerned the loan for the vehicle.
  • A homesteaded house or mobile home, even if you do not own the land. This exemption protects up to $550,000 of the home’s value. It can protect up to 100 percent of the value if the judgment is for a medical bill.

(NRS 21.090.)

CAUTION! The homestead exemption does not apply if the judgment against you was for the mortgage or is a mechanic’s lien on the property.

This is not a complete list of exemptions. For a more comprehensive list (although not exhaustive), click to visit Nevada Statutes and study NRS 21.090, and click to download the Notice of Execution (After Judgment). You should consult an attorney to determine whether you qualify for any other exemptions.  Click to visit Lawyers and Legal Help.

Is there anything I can do to protect my income or property BEFORE it’s actually attached or garnished?

You can “homestead” your home or mobile home if you own it or live in it. To learn more about this, click to visit the Clark County Recorder website or call the recorder’s office at 702-455-4341 and ask for their information packet.

If you have income that is exempt, such as Social Security benefits, it is best to notify the judgment creditor in writing of the fact that your bank account, for example, has only Social Security benefits in it. Keep a copy of that written notice for your records.

What can I do AFTER my income or property is actually attached or garnished to claim my exemptions?

Even if your property is exempt, you must bring this fact to the attention of both the judgment creditor and the court.

To claim your exemptions, you must file a Claim of Exemption from Execution form with the court. You have only ten business days from the date the Notice of Execution was postmarked and mailed to you to complete this process. Within those ten business days, you must:

  • Complete your Claim of Exemption from Execution form and file it with the court where your case is pending, along with any documentation you have that supports your claimed exemptions (pay stubs, benefit award letters, and the like).
  • Mail your Claim of Exemption from Execution (be sure to include all attachments) to the judgment creditor.
  • Mail your Claim of Exemption from Execution to the constable or sheriff involved in the garnishment or attachment (whichever office served you).
  • Mail your Claim of Exemption from Execution to your employer or bank (depending on whether your wages are being garnished or your bank account is being attached).

TIP! If you need the address for a constable or sheriff, click to visit Constables & Sheriffs. If you need to find the address for the judgment creditor’s attorney, click to visit Legal Resources and go to the State Bar of Nevada’s website.

A Claim of Exemption form is available, free of charge, at the Self-Help Center, or you can download the form on your computer by clicking one of the formats underneath the form’s title below:

CLAIM OF EXEMPTION FROM EXECUTION  
Pdf Fillable

There is no fee to file the Claim of Exemption from Execution form.

For instruction on how to complete and file court forms, click to visit Basics of Court Forms and Filing. For location and contact information for your court, click to visit Find My Court.

What happens after I file and mail my Claim of Exemption from Execution form?

If the judgment creditor does not dispute your claim of exemption, the sheriff or constable will return your property to you nine business days after you filed and mailed your Claim of Exemption from Execution. (NRS 21.112(4).)

But the judgment creditor can also dispute your claim of exemption (for example, if your car was taken and you claim the car is worth less than $15,000 but the creditor claims the car is worth more). To dispute your claim, the judgment creditor must file an Objection to Claim of Exemption from Execution with the court within eight business days after you file and mail your claim form. The court will set a hearing within seven business days. And the judgment creditor will mail you notice of the hearing date at least five days before the hearing.

TIP! If you want to avoid an objection, be sure to attach the proof of your exemptions when you file and mail your Claim of Exemption form. If you believe your income is too low to be garnished, you can attach paystubs. If the money in your bank was exempt benefit payments, you can attach your benefits award letter. If the judgment creditor is able to verify your exemptions, they may never file an objection, which means no hearing. But be sure to black-out any confidential information on your documents (bank account numbers, social security numbers, and the like) before you file them with the court!

An Objection to Claim of Exemption from Execution form is available, free of charge, at the Self-Help Center, or you can download the form on your computer by clicking one of the formats underneath the form’s title below:

OBJECTION TO CLAIM OF EXEMPTION FROM EXECUTION  
WORD FILLABLE | PDF NONFILLABLE  

For instruction on how to fill out and file court forms, click to visit Basics of Court Forms and Filings. For location and contact information for your court, click to visit Find My Court.

If the judgment creditor files an objection, what happens at the hearing?

At the hearing, you must prove to the judge that you are entitled to the exemptions you claimed. Bring pay stubs, receipts, bills of sale, Kelley Blue Books, assessor’s statements, vehicle registration renewals, monthly bank statements, or whatever is necessary to prove what you claimed. If you convince the judge, your money or property will be released to you. If the judge denies your claim, you do not get your property back.

You should take a proposed order for the judge to sign to your hearing. If the judge agrees with the exemptions you claimed, tell the judge you have a proposed order and ask whether the judge would be willing to sign it. Some judges may sign your order in the courtroom. Other judges may prepare their own order or ask you to submit an order for consideration. Just follow the judge’s instructions.

A form Order Regarding Claim of Exemption from Execution is available for free at the Self-Help Center, or you can download the form on your computer by clicking one of the formats underneath the forms title below:

ORDER REGARDING CLAIM OF EXEMPTION FROM EXECUTION  
PDF FILLABLE | PDF NONFILLABLE | INSTRUCTIONS  

Once the judge signs your order, you must file it with the court. You should also prepare the Notice of Entry of Order form included in the packet, attach the file-stamped order, file it with the court, and mail it to the other side and the constable or sheriff.

Can exempt property ever be taken from me?

There are certain situations in which otherwise exempt property can be taken from you:

  • If the judgment entered against you is for child support, some of the exemptions (such as 75% of take-home pay) do not apply.
  • You cannot claim the exemptions if a bankruptcy order directs that the property be taken.
  • The exemptions are not available for certain tax liens.
  • You also cannot claim property is exempt if the judgment was for the purchase, loan, or improvement on that property (for example, the remaining installment payment on a used car that you bought).

What can I do if I have property or wages that are not exempt from execution?

To avoid attachment or garnishment of your non-exempt income or property, generally your options are to:

  • Pay the debt either in full or through a payment plan that has been negotiated with the creditor or imposed by the court.
  • Convert non-exempt property to exempt property by filing, for example, a homestead exemption on your house.
  • Erase the debt through bankruptcy.

Is there anything I need to do once the judgment is paid off?

Once the judgment is completely paid off, the judgment creditor must file a Satisfaction of Judgment with the court so that the payoff is reflected in the court’s records. There are a couple of reasons why this is important. First, Nevada law requires that the judgment creditor notify the court that the judgment has been paid in full. (NRS 17.200.) Second, an unsatisfied judgment has a negative impact on the judgment debtor’s credit report and credit score.

If the judgment creditor fails to file a Satisfaction of Judgment, you can file a motion to have the judge declare the judgment satisfied. Both forms are available, free of charge, at the Self-Help Center, or you can download the forms on your computer by clicking on one of the formats underneath the form’s title below:

SATISFACTION OF JUDGMENT  (FOR ALL JURISDICTIONS) 
PDF FILLABLE | PDF NONFILLABLE  

LAS VEGAS MOTION FOR SATISFACTION OF JUDGMENT
PDF FILLABLE | PDF NONFILLABLE

MOTION FOR SATISFACTION OF JUDGMENT (FOR ALL JURISDICTIONS OTHER THAN LAS VEGAS)
PDF NONFILLABLE 

For instruction on how to fill out and file court forms, click to visit Basics of Court Forms and Filing. For location and contact information for your court, click to visit Find My Court.