Are you judgment proof against getting sued?
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- Опубликовано: 30 сен 2024
- Being collection proof may not mean what you think it means. Get informed about the risks you're exposed to when your debts go unpaid too long.
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Michael Bovee started CRN in 2004 with a mission to provide people in need with detailed credit and debt help. The DebtBytes Channel is an extension of the CRN blog, and is dedicated to finding the debt relief option or strategy that works best for you.
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I am perplexed you seem to refer everybody to an attorney when it was just a simple yes or no answer I’m not going to hold you as giving me specific legal advice. But clearly on your videos you do this all the time. If I had the money to pay for an attorney I wouldn’t of had this motion filed against me in the first place
Disability is judgement proof.
Hi Michael, do judgments expire from the date of their disposition date in NJ? Is that the official day the "clock starts" so to speak?
Judgments in New Jersey are good for 20 years from the date of courts order entering judgment. New Jersey judgments can be renewed for an additional 20 years with the filing of some simple forms.
I was under the impression that if a judgement is made against you, they can get a writ of seizure to take assets. So what's all this talk about coming for you 5 years later after a judgment, when your financial situation finally improves? I'm so confused about this.
A judgment creditor does have the option of pursuing certain assets. State law protects you at different levels. AN example would be how Texas has great protection for a vehicle you own outright, while Michigan does not.
Credit card judgment collectors, which are predominately law firms that do that work everyday, really do not want your stuff. They just want money. There are some exceptions of course. But I typically see them try to garnish wages in states they can; levy bank accounts to the degree possible; and file property liens on homes.
As far as the 5 years and later issue, judgements have long expiration dates. In some state they can be enforced forever.
OK so what if u went to the hospital for something you couldn't control told everyone before hand you couldn't afford anything yet they still went ahead and charged me I haven't worked in a year have 0 income no bank accounts or credit cards no house not renting and I don't own a car so should I be fine bc I have a rotting tooth in my mouth I also can't afford 2 remove rn and idw to deal with this
I would talk to the hospital about how you may qualify for their financial assistance programs. Many hospitals have a program for charity care that can result in them forgiving the bill for those that meet their policies.
Greetings Michael! What are the rules in Texas about how much a bank/credit card company can take from your bank account once they have won judgment over you? Where can I look up and read about this? Thanks!
There are no exemptions that can be applied to, or protect your bank account from, a levy resulting from a civil judgment. You should be able to find this in your states civil code for enforcement of judgments.
@@MichaelBovee Thank you for your reply.
What is the latest (prior to the statute of limitations) you have seen someone get sued? Is there a typical lawsuit window in general? I understand it depends on the collector. thanks
I have seen filings weeks prior to the SOL expiration, but mor common is to see collection law firm placement 6 months prior to expiration.
@@MichaelBovee Thanks Michael.
Homestead, check State Federal law for Judgement /Collection Proof.
$175,000 for the Disabled.
In California what assets are judgement proof?
A California judgment could lead to wages can being garnished up to 25 percent, though some of us may meet undue hardship exemptions.
Your bank account could be levied, though California protects up to the first 1,724 dollars in your bank account.
Your automobile has some judgment protections in CA, but it is limited to the value of 3,325 dollars. I have not seen creditors go after vehicles in California like I have other states.
There are other protections for household goods.
A judgment creditor could file a lien against your home in California. There are certain homestead protections you can look into.
There are different protections when you file for bankruptcy in California. If you are in a situation where you have to consider what assets are protected, it may be a good idea to look at chapter 7.
@@MichaelBovee Thank you.
I have 31 credit cards, about 130 grand in total credit (on all cards combined) and I live on a 960 SSDI check. I know they can't go after my SSDI check. Althow I do have money in the bank it's all in my dad's name and my name is NOT tied to it (I do online banking with it to pay bills like credit cards because between my dad and I it's mine BUT legally its not mine 😀) I do own my own home though! So IF I max out all my cards...what can happen to me? I'm serious about this. Also I live in Texas. Can they throw me in jail?
No debtors prison in the US, so no jail over it. Be sure if you are sued that you follow through on any court orders, as that is where people get in to trouble.
Being sued and a judgment entered is as far as this typically goes. In Texas that can mean a bank levy and/or property lien.
@@MichaelBovee I thought in Texas they can put a lien on my home? What states is protected? One last question please...if I move out of country and LATER a Court order is sent out to my old address...and I'm overseas living. So I don't know about it...many years later I get back to USA...can I go to jail? Because I did not complely with Cort order?
There are homestead exemptions in Texas, but there are also judgment liens. I would talk over this concern with an experienced debt collection consumer law attorney in Texas.
If you were sued without your knowledge, or having been lawfully served, you would have an option of vacating a judgment for lack of service. And this is not a little concern, as that kind of thing happens.
But getting arrested for debt is not likely, not even for a judgment. When that happens on a civil judgment it is typically for not adhering to a judges order.
@@MichaelBovee thank u for your information and quick response
Thank you for explaining this very clearly.
Is this correct I couldn’t find the statute for it but says that homestead exemption is exempt from judgement on unsecured credit card debt and the limit only applies to secured debts like tax liens etc.
I'm in KS. I am 58yo. My only income is SSDI ($1,700) and a small monthly pension ($300). I have a credit card debt of $25K. This amount is spread out over 5-6 cards. I am judgement proof. Some balances I can handle (under $1K) and some I cannot (over $4K). I have not paid on the larger balances for about 2-3 months now. Should I default on ALL of my cards or just the big balance ones? When should I send a 'judgement proof' letter? When the debt goes to collection agencies? Wait and see if I get sued and THEN send them the judgement proof letter? I don't answer unknown phone numbers. They are calling me, snail-mailing me, emailing me. I haven't read any of the former yet. Thank you. PS: I love your videos!
If you have no assets and are on a fixed income, and that is not going to change, communicating your situation with your creditors early is fine. It does not mean they will take your accounts out of their typical collection pipeline.
Many banks will see (from your credit reports) that you are late with other creditors and close your accounts, even though you are making on time payments to those smaller balances. You can try to keep those paid and available for use but be prepared for those to get closed or the limits to be lowered.
Can you help me understand this better? I got sued, I'm on SSI. I know that can't be touched. I do not own a car and really have nothing of value. The debt is $995. I do own a house. But according to my state if my spouse is not on the credit card then they cannot put a lien on the house. And then there is the exemption portion of that which is $7500 per person, $15,000 per couple.
So is this $995 debt exempt from having a lien on the house aside of the fact that it's not a joint debt? I don't quite get how that exemption works, is it the first $7500 after whatever it would be to pay off the mortgage? Say my mortgage is $125,000 but my house is only valued at $110,000, they would not have any access to it? What if Zillow says my house is valued at $215000 but due to much needed repairs it's not worth that? I'm in Indiana and appreciate any pointers you can give me. Thanks
I would talk this over with an experienced debt collection consumer law attorney in your state.
If there is not enough money to pay off the existing mortgage at sale, a judgment lien holder, who is later in line, would get nothing.
I have two medical judgment from 2007 and 2009 in Texas how long a judgment last in Texas? How they’re going to find out about my banking account ? If I don’t let them know I have one , thank you
Judgments last for 10 years in Texas, and can be renewed, so check the court record to see if they did that.
Collection law firms sweep large banks in your state, and with in a certain mile radius of your last known address in order to get a match on your name and social, which banks require to open accounts.
Hi Michael can you please give me the information for West Virginia? Thanks and also I only get SSI and I was sued by Discover and they got a judgment should I worry I live with my parents and own no property car etc only get 500 a month am I safe thanks and wanted to tell u I really love ur videos great info
How much is the Discover judgment? How old is it?
Thanks for responding Michael the judgment is for $3,500 and it’s about a year and a half old
If your SSI in your bank account does not exceed 2 months of deposits you may be alright.
You can settle judgment debts for less. At some point, when you are ready, you will likely want to do that.
Michael Bovee another problem I am having is a bunch of unauthorized hard inquiries on my credit reports is there anyway to get them removed from my credit reports there seems to be conflicting information online and I wanted to ask a professional have u did a video on this I could watch or can you give me advice on how to challenge these inquiries to get them removed I don’t know much what the FCRA says about this your advice would be sincerely appreciated Thanks !
If you did not authorize the inquiries you can dispute them. I would be very concerned about identity theft if I were you.
More about disputing with credit bureaus here: consumerrecoverynetwork.com/dispute-tradeline-diy-credit-repair/
Lost judgment a capital one I have to fill out a financial fact sheet in Florida some of these questions are just kind of weird. I have no Checking Account it was closed I have no assets I have no property but they want to know the names of all the children that are not living with me? I don’t understand the reason for this. And if my checking account was closed two months ago due to lack of funds and my husband not depositing his check in there anymore onlySource of income is his. Do I still need to submit three months of statements when I don’t actually have the checking account anymore
I would talk to a debt collection consumer law attorney in your state about what you would need to include, or could leave out.
What is exempt in Texas? thanks for your help
I mean what property, I own a four wheeler that I use to get around on and a trailer to haul it and am a musician with some expensive music equipment but that's how I make money, can they take any of this stuff with a judgement? I am disabled and the music business is a supplement for income but its very small
I do not think you have much to worry about regarding those items in Texas. It is hard to collect, even with a judgment, in your state. How much is the judgment for? Who sued?
Well it hasn't happened yet buy it's Discover, American Express, and Bank of America all total prob fourteen k
All three have a reputation for suing as of today. It is good to raise your awareness of collection in the courts.
What are the property exemptions in Missouri? The credit card debt is in my name. the house and car are in my wife and my names. Only have SS and Pension incomes.
I would run this my an experienced debt collection defense attorney in your state. You can find some using the drop down menus here: www.consumeradvocates.org/find-an-attorney
Live in Illinois and considered Judgement proof. Have no assets or income other than Social Security Disability, etc. Have no credit history or credit cards. Have a collection account regarding a subrogation claim from an Auto Accident that I'm disputing. Gone through 2 third party collection agencies so far. Concerned about legal action but I plan to consult a attorney just in case something happens. Already sent verification letters and 1 cease and desist letter to 1 agency so far. What would your advice be to me in this situation here in Illinois. I do plan to fight this in court if neccessary.
If you are going to dispute and fight this if sued, have you considered talking to an attorney and taking the fight to them proactively?
I will wait to see what they do for now. I'm not exactly sure that the claim is valid. I've talked to a few attorneys, only thing to do is wait. I've sent along paperwork to 2 third party collection agencies disputing the debt and asking for verification. Mailed certified Recieved nothing as if yet. I have kept all the collection letters including 1 certified mail receipt. I will consult legal council if I need to.
What if the person is in jail and looking at 7 to 10 years. No assets and no money coming in. Is this person judgement proof? Should this person care about his credit right now or worry about it when they get out?
They would not be able to collect from this person, but with a judgment, could later on.
I would rebuild afterward.
Thank you for your videos. Cain you please write about exemptions in New York State? Thank you so much 🙏 and what if I live in NY but work in CT then what would happen to my wages? And how high does my paycheck need to be to be garnished? Thank you
I would talk your situation over with an experienced debt collection consumer law attorney in New York.
What are my exceptions in Texas? Can child support payments be garnished?
Wages are exempt in Texas. You have a high wild card exemption that gets doubled for a family, and that would cover most household goods and a high value car or truck. There is no exemption from a bank levy resulting from a judgment. The money in the account could be from an exempt source though, like social security. I am not aware of a child support exemption. Talk to an experienced debt collection defense attorney in your state and see if there is one, or if it would be something you would have to show the court caused a hardship.
What are my exceptions in Colorado? Also please show me where to read the laws in colorado
You can search google for Colorado laws, or reach out to a state agency for quick access to what you are researching.
General collection exemptions in Colorado include:
25% of wages can be garnished. There is a more detailed calculation for 30 times state minimum wage that may protect a hair more than 75% of wages too.
Colorado exempts the value of your car up to 5k.
60k home equity, and 90k if elderly or disabled.
Your household stuff in CO is protected up to 3k.
There is no cash exemption in Colorado for money in your bank account other than federal ones, such as social security and disability payments.
I live in KY what are my options?
I have no money in bank & no assets & no car?
Are you being sued, or contacted by a debt collection law firm?
Are you working?
@@MichaelBovee Yes I have been contacted & being sued & no im not employed. Thank you for replying..
@@MichaelBovee I have unpaid medical bills & unpaid car repo but have no way to pay. Should I let the debt collector know I believe I am judgement proof?
@@MichaelBovee Or should I do nothing & let them get a judgement & wait out the statute of limitations?
Whis the named plaintiff on the lawsuit?
I would certainly communicate that I am uncollectable in a situation like this. It does not mean they would drop the case.
The SOL for court judgments is often different. Some states allow them to last forever. Some they just have to renew, etc.
How would it work in california if there is a car in my name that is paid off but i'm currently unemployed and cant pay my cards? the car is worth about 10k right now. Most of my credit card companies have been willing to work with me during this covid situation but Citibank wont. I owe them 1.2k
How late are you with payments to Citibank?
@@MichaelBovee as of right now 3 months. My other cards delayed my stuff until June but Citi still calls me 5 times per day
@@kaukatsu405 You can still try for payment forbearance with Citibank, but you can also see if they will do a hardship repayment (reduced interest rate for pay off period of up to 60 months), and you can often settle with Citibank for 40% of the balance owed.
Can they take my paid off 2015 Honda (My only car)?
What are my exceptions in Virginia ?
It looks like there is a 6k auto exemption from judgment creditors in Virginia.
There are only a couple of instances in 2 states I have seen a credit card judgment result in a sheriff showing up to take a non exempt automobile.
It is not common.
How much is the judgment for?
Who is the named plaintiff on the lawsuit?
What about Georgia? And can a creditor access a savings account without your permission? Thanks
What is the question for Georgia?
With a judgment against you, your checking and savings held in your name could be at risk.
@@MichaelBovee I guess my question was whether I can be sued. I have no assets but I do have money in the bank. I don't have enough to even make a settlement and because of the cost of living it's hard to make the minimum payments and to survive. Not sure what to do
@@scottyg5403 Yes, you can still be sued. Many creditors are not as discerning as we would think, when it comes to spending money to sue people that clearly will not be able to pay, at least at that point in time.
How much do all of your debts add up to?
What are the house exemptions for tn? I will be happy to go in more detail if you need me to. Thank you
That can range between 5k and 25k depending on age, whether married, or there are children. Talk to an experienced debt collection consumer law attorney in your state.
@@MichaelBovee I appreciate you responding to me and could you recommend one ?! I'm in tn
what state is better for assetts protected arizona or florida
I would talk that over with an estate planner.
When it comes to your exemptions if you are having financial trouble, Florida is better by far.
Follow the rich people who are in financial trouble.. they all go to Florida for a reason.
What is the car exemptions for pennsylvania?
$300. Yikes!
@@MichaelBovee Most likely your car will not have a lien placed on it. The costs of doing so are rarely worth it and do not guarantee that they will collect any money. If you still owe on your car, they are not going to even bother. If your car is paid off, it is probably worth so little that the costs to get the small amount of money it would bring in would be more than any collector would want to spend. Don't buy into all of the fear tactics.
What are my exceptions in California?
California specifies that deposited wages are exempt from judgment creditors. But talk to an experienced debt collection defense attorney there to get detailed feedback about how that works in practice.
All necessary household goods are protected. Practically speaking, no one with a judgment is going to show up and take furniture, appliances, or most inside the home type stuff.
75k of your home in CA is protected, and you can make that 100k if married. The amount can go to 175k for some elder, disabled, and low income people. Understand that this does not mean a judgment lien cannot be placed on the home. Those lines are very common in California, and you will want to resolve a judgment lien before listing or refinancing your home.
If you own your car outright, California protects the value of your car up to $,2900.
Wage garnishment protection in California is not great. Close to 25% is at risk. You can contest garnishment formally with the court and show how it creates a hardship.
Michael Bovee Thank you
I am currently going through the debt settlement process. Lending club has turned my account over to collections. I owe them 14k. I am planning on getting married in February. Can the debt collectors take any of my soon to be spouses assets? We live in oklahoma.
They would have to sue and get a judgment before there were any risks to assets. A joint bank account would be at risk at that point.
Would you prefer to settle with Lending Club?
Michael Bovee, yes I would. I got my first call from frontline asset strategies this week. Haven't paid lending club since June 2017.
Call in for a consult with me if you like. You can reach me at 800-939-8357 ext 2.
Your future wife would not be responsible for any debts incurred by you before you are married. However, if you have a joint checking account, they can take money based on the balance kept in the account. Your future wife should maintain a separate bank account and maintain any personal assets in her own name until this is cleared up.
I have 8,000 in credit card debt for a chase freedom card. I cannot afford to pay this card (single income mom) This card has gone to collections and about to be charged off. This debt was not created by me, this card was being used by my ex and he even signed the receipts in his name when he was using the card. For about a year he was giving me the money for this card monthly minimum but he stopped that last year and left me with this debt. I have a signed document that he signed stating he was responsible for this debt. Would this hold up in court against a debt collector? If so what type of attorney should I look into speaking to? Any guidance in this situation would be greatly appreciated! I love all your videos thank you for keeping the public informed!
That will not help you with a debt collector. Even the judge splitting debts in divorce court does not help.
Chase does not sue for collection at the time I am replying to you. But you will likely want to resolve this at some point in order to improve your credit situation. How long will it take you to pull together 3k?
I have other credit card debt that I am going to work on doing debt settlements with. I have a sum of about 25k all together (including this 8k chase). Based on your videos that I have been watching religiously, I am going to try to get a lump sum of 10k borrowed from my father so do a debt settlements with each one of these cards. I have not missed payment on any of them yet, so I have to begin that process now in order to eventually get them to settle. Watching your videos has helped me to prioritize which banks to settle with first. I truly appreciate your help in this manner. I need to speak to my father and find out if I can get this loan from him. If so, I really would like to speak with you and work with you. Out of all the youtube videos I have watched and experts you truly are the most informative and helpful and you reply back to people. This tells me you're an honest man! If you could please let me know whats the best way to contact you directly that would be great! Thanks so much!
You can go to any page on the CRN site and click the get help button to start a profile and get started working with me: consumerrecoverynetwork.com/
You can also reach me by phone at 800-939-8357 ext 2.
Thank you Michael! I have created a profile on your site. I look forward to working with your company.
If I had a judgement lien on me.Wouldnt it appear on Clerk of Court records? I'm in South Carolina.
If the lien is the result of a judgment it should be something you can look up in your county court civil records.
@@MichaelBovee Its there but there is no amount listed .If it wasn't dismissed,wouldnt I have a dollar amount after 10 years? Nor have I heard anything from anyone.
Judgments in South Carolina expire after 10 years and cannot be renewed like they can in many other states. That is a good thing. Talk to a local attorney to be sure, but I do not think the judgment can be enforced any longer.
@@MichaelBoveehank You Mr. Bovee,,,I will
Please ansewer my Question
I do not see any other post from you recently. Please repost your prior comment.
What are the exemptions for North Carolina?
Wages are exempt from garnishment.
$3500 auto exemption, with an additional 5k available if not using a homestead exemption.
$35000 home exemption that could be as high as $60000 for certain seniors.
Up to $14000 household goods exemption that will depend on how many children, and if you claim homestead.
It looks like there is no set exemption amount for cash in the bank.
Now you answered her.? About N C so how about my.?
Would I be judgment proof if m only income is social security andI owe 165000 on a house that is only wort that after I fix it up
I live in n c
If you have an asset that a judgment creditor can lien, you would typically not be considered judgment proof.
I don’t think they would put a lean that has that little equity in it
Happens all the time.
They can’t take your house are make you sell can they
That is called involuntary foreclosure, and it is theoretically possible, but you never see it happen.
What about Maryland?
Maryland does not have great wage, bank, or property exemptions.
@@MichaelBovee I don't own any real estate property. I have a car I still owe $2,500 on and a piece off furniture I owe $1,700 on. I live an a apartment with my wife and daughter rent $1400 a month. I am the only one working. Yearly income 40k The judgement would be $4000. Would they be able to take anything such as, car or funiture?
They cannot take the car or the furniture as those are not yet yours until they are paid off.
What are property exemption in SC
Wages exempt from garnishment.
$5600 exemption for your car, with potential for higher
About 56k home equity exemption.
$4500 for household goods.
You have a cash/bank account exemption that you can use if you do not use any homestead.
What are the exemptions in Florida? Thank you!
Talk to an experienced debt collection defense and/or bankruptcy attorney about exemptions specific to you.
Head of family wage exemptions are strong in Florida, but the auto exemption is as low as 1k. Your home is typically protected, but household goods are not awesome. There is a good deal to consider specific to each of us in these situations.
My friend has multiple judgments from a failed business, he lives off the grid in a neighboring state on property owner financed but not in his name. He occasionally drives a truck but only for companies that do 1099’s mailed to an old friend’s address in California. I told him he should just move to Texas or Florida and put his money in his house.
Or, just pay the bills and move on. Yeah, it's easiest that way.
@@jimcole6423 His debts are nearly 200k, he is over 60 years old, working part time. Not really a solution.
Sounds like he should just declare bankruptcy@@label1877