201901.03
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Everything You Need To Know About Being Judgement Proof

Worrying about a possible pending judgment can keep you up at night worried sick about what your future holds. The uncertainty of not knowing if your money will be accessible in the morning can be very stressful. Here are a few things for you to know to protect yourself. Creditors cannot take more than 25% of the your after tax income to satisfy a debt. If your income is from certain sources, your creditors will not be able to take it. Wage garnishments cannot be applied to Social Security payments, public assistance, unemployment, veteran’s benefits or retirement benefits. These sources of income are protected by law, so that you will have the means to care for your immediate needs.

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Traditionally, if you owe a creditor money, they will petition the court to freeze your bank account. The creditor will then subtract the amount of its debt from your bank account balance, and the amount owed will be satisfied. If the funds in your bank account do not cover the debt, the creditor will then go after your property. If you own a car or any real estate the creditor may ask the court to seize these assets. The creditor will then sell the property to cover the debt.

At any time you can contact the creditor to set up a payment plan that fits your lifestyle. The ultimate goal is to repay your debt without being blindsided by creditors freezing your accounts. Think of getting a second job to pay off the outstanding debt. It is your responsibility to pay the creditor for the funds and/or services that they provided you. The most important thing to remember is that you don’t have to navigate this alone. Contact the team at Pro Advocate Group to get help and support as you move through the process.

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