

This process is so time-consuming and costly that it virtually never occurs with a consumer, let alone a lower-income senior. Finally, they would have to account for the senior’s exemptions allowed by law. Then they would have to get the services of the sheriff, which also is complicated and expensive. They would have to file complicated papers with the court, pay expensive court fees, get what is called “bond,” which costs money. Why? Used personal property has very little value. Even if a person has personal property over the state exemptions, unsecured creditors who obtain judgments virtually never go after a person’s personal property. Most lower income seniors have personal assets close to or less than the state exemptions where they live. This includes exemptions for personal property like a car, furniture and other personal items, in addition to equity in a home. They are nervous that a judgment creditor could take property from them, but in almost all instances this should not be a concern for seniors.Įvery state has what are called “exemptions,” laws which list what property is protected from creditors. Sometimes seniors are buying a home or have other property such as a car, furniture or other assets. in almost all instances, senior citizens' property is safe. In that instance a senior would need to file what is called a “claim of exemption.” This is a form shows the money in the garnished bank account came from monies that were exempt, such as social security, pension, disability or VA benefits.įreezes on accounts can be largely avoided by having only one bank account – the bank account into which social security is deposited – and making sure there is never more than twice the amount of monthly social security in that account. If nothing is done, the money would be sent to judgment holder. If there is excess money in the bank account – more than twice the amount of the social security deposit – or if a senior has another bank account, a garnishment could temporarily freeze the senior’s account. The only requirement is that the social security check is directly deposited into the account. These regulations do not require the funds in the bank account at time of the garnishment to be social security funds. money in a bank accountįederal regulations instruct banks and credit unions that twice the amount of monthly social security electronically deposited into a bank account is automatically protected from garnishment. Furthermore, in Pennsylvania, North Carolina, South Carolina and Texas, garnishment of wages is not permitted by law. Even net wages of $217.50 per week are protected from garnishment by federal law.

If your only income is social security, a pension, disability income or a VA benefit, that income cannot be garnished because it is protected by federal law. A judgment allows the creditor to file what is called a “garnishment,” which orders someone who is holding money for you to pay them, not you. The majority of seniors are judgment proof. Sometimes, when senior citizens ask these questions, they are told not to worry, because they are "judgment proof."Ī senior is judgment proof when a creditor with a judgment against him cannot get any of the senior's property through enforcement of the judgment. It is natural for people to ask questions about would could happen as a result of the lawsuit. Seniors worry someone could take their money, income, or property to pay the debt for which they’re being sued. Nevertheless, being sued can be frightening. Many persons who are sued have no defenses to the complaint or lawsuit filed against them because they do owe the money. If the plaintiff prevails, then he receives a judgment against the defendant.
#JUDGMENT PROOF TRIAL#
If answer is filed, eventually a trial would be held to determine if the money is owed. If an answer is not filed, the summons explains that the person filing the lawsuit, called the “plaintiff,” will obtain a judgment. Also, there is normally a document attached to the complaint, called a “summons,” which explains that the person being sued (the “defendant”) has a certain amount of time to file an “answer” in court if they contest the complaint. A lawsuit consists of what is called a “complaint,” a paper that alleges what money is owed for and how much is owed. When someone owes money, for example a past due credit card or medical bill, the person or company to whom the money is owed can file a lawsuit in a court.
