Waiver Of Exemption

What is ‘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.

Explaining ‘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.

Further Reading

  • Exemptions and waivers from cost sharing: ineffective safety nets in decentralized districts in Uganda – academic.oup.com [PDF]
  • Service-and population-based exemptions: are these the way forward for equity and efficiency in health financing in low-income countries – www.emerald.com [PDF]
  • The law and economics of consumer finance – academic.oup.com [PDF]
  • The experience of Ghana in implementing a user fee exemption policy to provide free delivery care – www.tandfonline.com [PDF]
  • … health financing in South Eastern Nigeria: Socio‐economic and geographic differences in households' illness expenditures and policy makers' views on the financial … – onlinelibrary.wiley.com [PDF]
  • Effective financing of maternal health services: a review of the literature – www.sciencedirect.com [PDF]