Waiver Of Exemption
 |
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 Definitions
Articles Of Interest
-
A Lifeline For Those Drowning In Debt
Don't wait to be saved, find out where the lifesaving devices are and hang on tight! -
Saving Your Home From Foreclosure
Learn the tactics you can use to prevent your home from being repossessed. -
Bankruptcy Protection For Your Accounts
Will the plan assets you've worked hard for be safe if you experience a personal financial crisis? -
What You Need To Know About Bankruptcy
Don't choose this last-resort option until you learn how it will affect your future. -
Changing The Face Of Bankruptcy
A 2005 law attempts to unmask fraudulent debtors and still save those who are struggling. Will it affect you? -
4 Credit Card Rewards Gimmicks Revealed
Credit card rewards programs are everywhere, but some are more rewarding than others. Learn to spot the "rewards" that can leave you feeling like a loser. -
Financial Risks That Don't Pay Off: The Cost Of Reckless Financial Behavior
Despite the recessions, citizens continue to take financial risks and spend outside of their means without fully appreciating the potential consequences for both themselves and the wider economy. -
10 Steps To Help Erase Errors On Your Credit Report
According to a study conducted by the Federal Trade Commission, one in four consumers identified errors on their reports that might affect their credit rating in 2013. -
How To Break Your Bad Financial Habits
If the current level of economic growth is to be maintained and improved upon, citizens must play their part by practicing responsible spending and borrowing. -
How To Reduce Your Debts Without Spending Unnecessarily
While it is not possible to repay your debts without investing money into the process, you should avoid spending unnecessary sums of cash in the pursuit of a financially liberated future.
Free Annual Reports