Waiver Of Exemption

AAA

DEFINITION of 'Waiver Of Exemption'

A provision in a consumer credit contract or loan agreement that permitted creditors to seize or threaten to seize specific possessions or property (typically those considered necessities) even if state law treated them as exempt from seizure. A debtor who signed a waiver of exemption made such exempt property available to a creditor who obtained a judgment to satisfy a debt. Such waivers of exemption are no longer permissible under the Federal Trade Commission Rule.

INVESTOPEDIA EXPLAINS 'Waiver Of Exemption'

An unsecured creditor who obtains a judgment cannot seize exempt property. However, the security interest of a lender who has a valid interest in property is unaffected, even if the property is exempt by state law, although in this case another FTC Rule provision that prohibits the taking of a security interest in property defined as household goods should be considered.

RELATED TERMS
  1. Waiver Of Premium For Disability ...

    A provision in an insurance policy that states that the insurance ...
  2. Waiver Of Inventory Clause

    A clause in an insurance policy that says that the insurance ...
  3. Unsecured Loan

    A loan that is issued and supported only by the borrower's creditworthiness, ...
  4. Federal Trade Commission - FTC

    An independent federal agency whose main goals are to protect ...
  5. Bankruptcy

    A legal proceeding involving a person or business that is unable ...
  6. Judgment

    A court order to the loser of a lawsuit to pay the winner a specified ...
Related Articles
  1. Retirement

    Bankruptcy Protection For Your Accounts

    Will the plan assets you've worked hard for be safe if you experience a personal financial crisis?
  2. Credit & Loans

    A Lifeline For Those Drowning In Debt

    Don't wait to be saved, find out where the lifesaving devices are and hang on tight!
  3. Options & Futures

    Saving Your Home From Foreclosure

    Learn the tactics you can use to prevent your home from being repossessed.
  4. Retirement

    What You Need To Know About Bankruptcy

    Don't choose this last-resort option until you learn how it will affect your future.
  5. Options & Futures

    Changing The Face Of Bankruptcy

    A 2005 law attempts to unmask fraudulent debtors and still save those who are struggling. Will it affect you?
  6. You may owe money, but you still have rights. There's a long list of things debt collectors are banned from doing to you. Know what's illegal.
    Credit & Loans

    5 Things Debt Collectors Can't Do To You

    You may owe money, but you still have rights. There's a long list of things debt collectors are banned from doing to you. Know what's illegal.
  7. Sounds like a bad horror movie, but it really could happen to you. Here's how to identify zombie debt and send collectors back to the dead-debt graveyard.
    Credit & Loans

    How To Beat Off A Zombie Debt Collector

    Sounds like a bad horror movie, but it really could happen to you. Here's how to identify zombie debt and send collectors back to the dead-debt graveyard.
  8. Understanding how the debt collection business works will give you a better chance of coming out ahead if you ever have to tangle with a collection agent.
    Credit & Loans

    Inside Secrets Of The Debt Collection Business

    Understanding how the debt collection business works will give you a better chance of coming out ahead if you ever have to tangle with a collection agent.
  9. Debt collectors can be professional or nasty beyond belief. Here's how to fight back – and what your rights and obligations are if one contacts you.
    Credit & Loans

    How To Push Back Against A Debt Collector

    Debt collectors can be professional or nasty beyond belief. Here's how to fight back – and what your rights and obligations are if one contacts you.
  10. College graduates - use these tax benefits to ease your transition into the 'real world.'
    Savings

    Money-Saving Tax Breaks For College Grads

    Even if you graduate from college with a heavy debt load – especially if you do – use these tax benefits to ease your transition into the 'real world.'

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center