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.

BREAKING DOWN '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. Exemption

    A deduction allowed by law to reduce the amount of income that ...
  2. Exempt Income

    Certain types or amounts of income not subject to federal income ...
  3. Tax Exempt

    To be free from, or not subject to, taxation by regulators or ...
  4. Homestead Exemption

    Laws designed to protect the value of a home from property taxes ...
  5. SEC Form T-4

    An application for exemption from certain sections of the Trust ...
  6. Judgment Lien

    A court ruling that gives a creditor the right to take possession ...
Related Articles
  1. Taxes

    Are You Missing Out On These Tax Exemptions?

    To lower your tax bill, make sure that you're taking all the exemptions that apply to you.
  2. Professionals

    Securities Exemptions

    FINRA/NASAA Series 63 - Securities Exemptions. This section lists and explains important securities exemptions under USA.
  3. Professionals

    EXEMPT SECURITIES

    Exempt Securities Certain securities are exempt from the registration provisions of the Securities Act of 1933 because of the issuer or the nature of the security. While the securities may be ...
  4. Professionals

    Exempt Securities

    Certain securities are exempt from the registration provisions of the Securities Act of 1933 because of the issuer or the nature of the security. While the securities may be exempt from the registration ...
  5. Professionals

    That Word "Exempt"

    One of the major terms that causes confusion for Series 63 candidates is the word, "exempt." Webster's defines exempt as "not subject to or bound by a rule, obligation, etc. ...
  6. Professionals

    Personal and Dependency Exemptions

    Personal and Dependency Exemptions
  7. Professionals

    Exempt Securities

    FINRA/NASAA Series 66 - Exempt Securities. This section discusses nine securities which are exempt under the USA.
  8. Professionals

    Exempt Transactions

    The Uniform Securities Act specifies a number of transactions by which non-exempt securities may be legally traded without registration. The following is not a comprehensive list but touches ...
  9. Home & Auto

    Equity Stripping Leaves Creditors Empty-Handed

    Add additional debt to your real estate assets to keep the creditors at bay.
  10. Professionals

    Agents: Registration

    FINRA/NASAA Series 63 - Agents: Registration. This section explains the registration and exemptions for broker-dealer/agents.
RELATED FAQS
  1. What property / belongings can I keep after filing bankruptcy?

    Discover which types of property you can keep after filing bankruptcy by listing them as exempt from normal liquidation proceedings. Read Answer >>
  2. If my spouse passes away, will I have to sell my home to meet creditor obligations?

    There are laws that can protect, to a certain extent, the value of a home from property taxes and creditors following the ... Read Answer >>
  3. Who is exempt from paying Social Security taxes?

    Learn about the groups of people who qualify for exemption from Social Security taxes, and explore the process of applying ... Read Answer >>
  4. Can creditors garnish my IRA?

    Find out how your IRA can be garnished by creditors, including how federal and state regulations differ and what exemptions ... Read Answer >>
  5. Transactions are exempt from registration where …

    Transactions are exempt from registration where … a. A sale, or offer of sale is made to ALL clients of a brokerage ... Read Answer >>
  6. Can my IRA be garnished for child support?

    Find out about the different federal and state protections for IRA funds, and when your IRA savings can be garnished to satisfy ... Read Answer >>
Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  5. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  6. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
Trading Center