Judgments in non-wage garnishment states

walkin

LoanSafe Member
May 1, 2012
361
6
18
I found this in my google search, and I have more questions, more specifically, what "assets" can be attacked if I have a judgement against me, and how to protect myself?

"Assume:

Creditor judgment against debtor.

Debtor has no assets, but high paying job in non-wage garnishment state.

Question: Even in a non-wage garnishment state, can there be court ordered payments, thus creating in this case a de facto wage garnishment?"


Since I have no assets, and can't have pay garnishments, I assume the checking account would be attacked. What is the process for the creditor to attack or liquidate an account? Do I have to tell them my account #, and if I do, what if I change my direct deposit to a different account, 2 weeks after judgement? Or set up an allotment, for 100% of my pay, to a "friend"?

If that can't be done, I assume I can stop the DD, and receive a hard check from work. Then, cash that check, and have a "friend" deposit it in their account, which will pay the bills. I assume a "friend" can be anyone, as long as my name is not listed on their account?

A lawsuit or judgement against me isn't going to happen soon, but I am expecting the possibility of one to be filed in the next 6-12 months or so, and want to start planning for it.

Also, I think I remember reading in here somewhere, that the lawsuit and judgement comes first. Then, I believe the creditor has to do their own searches, to "find" any possible assets? Or, do I have to tell them where everything is, in front of a judge? (there are none- I wish I had "secret" accounts). Then, I believe they have to enforce the judgement, or collect on it...just not too sure how all this stuff works.
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org

walkin

LoanSafe Member
May 1, 2012
361
6
18
Thanks Cat. I'm not necessarily seeking only a lawyer's perspective, but others as well. I'm sure there are plenty of people out there who aren't lawyers, who have been creative with their finances before/during/after lawsuits and/or judgements.

I think that I'm pretty close to being "judgement proof", but really would like to be proactive and reinforce that appearance, in case I ever get looked at hard for a lawsuit.
 

acesfull

LoanSafe Member
Nov 5, 2008
2,216
110
63
NEW JERSEY
Hi Walkin

I'm no expert but let me just give you what I know from past experience.
The fact that Your state does not have wage garnishments would indicate to me that small creditors would hesitate to fill claims however I could be wrong.

First and foremost, when you receive the COMPLAINT make sure you ANSWER the complaint and challenge with affirmitive defenses all counts in the complaint... Its not that difficult to do...

Many States have what is called An Information Subpeona, You may wise to research this document for your States Laws.

I personally give away no financial information unless instructed by court order to do so. I would suggest that you follow the same format...

Hope this helps in some small way.

Best regards

Nj-19 Months
Acesfull/HWP
 

walkin

LoanSafe Member
May 1, 2012
361
6
18
Thanks acesfull. I think that I would agree with you that small dollar creditors may be hesitant to file a suit. From my brief research, it seems that it will cost them thousands to pay a lawyer to file the suit and get it done, and then for them to search for assets, etc. By then, they've spent what I owe them....So, I assume the small dollar credit cards aren't really a big concern of mine.

When/if the 1st mortgage files the FC papers, they will say whether they are demanding deficiency, or waiving deficiency. This seems to be a coin toss, but more favorable for smaller mortgages and people who aren't wealthy (like me). Once I see that, I'll have a better idea of which way I need to go. By biggest concern is the heloc, who I'm into for over $60k. They've already charged-off, and it is with a collection agency clear across the country, in California, LOL. I'm not overly concerned about it all, just trying to wrap my head around all the possible scenarios, and start planning for it. I stopped losing sleep over this stuff....though it has turned me into an alchoholic over the past year ~party time, woot~~~