You’ve Got the Escalade, Now What? A Reminder of What Slow Pay Motions Can’t Do

With the economy in shambles, I’ve come to learn that, sometimes, people are broke.

When I ask that they pay me $250 a month on a judgment, they turn around and file a “slow pay” motion asking to pay me $20 a month.  I talked about Slow Pay Motions (a.k.a. Motion to Pay Judgment by Installments) a few years ago.

Let me revisit one aspect I left out in that earlier post:  What exactly does a Slow Pay Motion stop you from doing?

Tenn. Code Ann. § 26-2-216 does not stay garnishments against real or personal property; it only stays garnishments against wages or salaries due to the debtors:

The filing of such motion by the debtor shall stay the issuance, execution or return of any writ of garnishment against wages or salary due the judgment debtor or any other funds belonging to the judgment debtor …

Tennessee cases support this conclusion: “No such installment payments are to be ordered unless the debtor has filed an affidavit stating that no other assets are available for payment of the judgment except the wages or salary of the debtor and that any other funds receivable by the debtor are so limited that installment payments are appropriate.” Harrington v. Harrington, 759 S.W.2d 664, 668 (Tenn. 1988).

So, let’s say you execute against a Cadillac Escalade (congratulations), and the borrower files a Slow Pay. In that case, the Court may enter a Slow Pay Order and set payments. But, that Order will prevent Wage Garnishments;  it will not stop collections on real or personal property.

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Useful CLE Alert: 2013 Tennessee Real Estate Law Conference in Nashville

It’s getting close to the end of the year, so now is the time to be looking to satisfy the year end CLE requirements.

Tennessee Attorney’s Memo is presenting the 2013 Tennessee Real Estate Law Conference on October 4, 2013.  This all day seminar will cover a number of topics related to real estate, mortgages, and case law updates.

Most important, Sean Kirk of Bonelaw will speak about our practice group’s big victory in the Sterling Ventures case, which was the first opinion to construe  Tenn. Code Ann.  § 35-5-118–the new Tennessee post-foreclosure deficiency statute.

Other topics will include:

  • Commercial development and financing
  • Work-out for troubled real estate loans
  • Post-foreclosure deficiency suits
  • Curing title defects
  • New mortgage rules
  • Environmental concerns
  • Ethical considerations in real estate law
  • Real estate case law/legislative update