Judgments
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A judgment is a formal order issued by a court, declaring that one party is owed money or has a right to something from another party.
Why Execute a Judgment?
The purpose of executing a judgment is to ensure that the creditor’s rights are upheld and that the debtor fulfills their legal obligations.
Methods of Execution:
– Garnishment: This involves seizing property or money owed to the debtor by a third party (like a bank or employer).
– Liens: A lien is a claim against specific property, such as real estate, that can be used to satisfy the judgment.
– Seizure of Assets: The court can order the seizure and sale of the debtor’s assets to recover the amount owed.
Exempt Property:
There are laws that protect certain income and assets from debt collectors. This is sometimes known as being “Collection Proof” or “Judgment Proof.” This means that although you still owe a debt, your creditor has no legal way to collect that debt or enforce a court judgment against you.
NCLC Guide to Protecting Wages, Benefits, and Bank Accounts from Judgment Creditors: CLICK HERE
METHODS OF EXECUTION BY STATE
Arizona:
Guide from Maricopa Superior Court
Guide from Pinal County Justice Courts
– Methods of Execution: Garnishment of Wages, Levy of Non-exempt Personal Property, Garnishment of Funds in a Bank Account, and Lien on Real Property
– Exemptions: CLICK HERE
California:
Guide from Orange County Superior Court
Guide from Pinal County Justice Courts
– Methods of Execution: Levying/Siezing Personal Assets (including bank accounts), Garnishment of Wages, Lien on Real Property, and Levy of Non-exempt Personal Property
– Exemptions: CLICK HERE
Florida:
Guide from 8th Judicial Circuit
Florida Bar Guide to Debtor’s Rights
– Methods of Execution: Garnishment of Wages, Levy of Non-exempt Personal Property, Garnishment of Non-Exempt Funds in a Bank Account, and Lien on Real Property
– Exemptions: Head of household wages (or personal property exemption of up to $4,000 per person); up to $1,000 of the value of your vehicle; Annuities and life insurance proceeds and cash surrender value; Homestead (up to 1/2 acre in a city and 160 acres in the county); Retirement accounts, including Roth IRA, IRA, 401k; Disability income; Prepaid college funding and Social Security; and miscellaneous creditor exemptions, such as professionally prescribed health aids, hurricane savings accounts (with restrictions), medical savings accounts, veterans’ benefits, and unemployment benefits.
– Note re Head of Household Exemption: Read what you sign! Many lenders include head of household exemption waivers inside loan documents. A debtor may be surprised when a creditor garnishes wages even though the debtor is a head of household when the debtor inadvertently signed a waiver in credit documents.
Maryland:
Guide from Maryland Courts on Collection of Judgments
Guide from Maryland Courts on Judgments and Debt Collection
– Methods of Execution: Garnishment of Wages, Seizing Personal Property or Real Property, and Garnishment of Funds in a Bank Account
– Exempt Income: Public Assistance Benefits (TCA, TDAP) (Md. Code, Human Services § 5-407(a)); Workers Compensation (Md. Code, Labor and Employment § 9-732; U.S. Code, Title 5 § 8130); Supplemental Security Income (“SSI”) (U.S. Code, Title 42 §1383(a)(2)(B)); Social Security Benefits (U.S. Code, Title 42 §§ 407, 659); State Police Pensions (Md. Code, State Personnel and Pensions § 21-502); Life Insurance or Annuity Proceeds (Md. Code, Insurance § 16-111); Unemployment Insurance Benefits (Md. Code, Labor and Employment § 8-106); Veterans Benefits (U.S. Code, Title 38 § 5301); and Retirement Benefits (most public and private pensions).
– Exempt Property: Up to $6,000 in cash or property of any kind (you must notify the court within 30 days from the date of attachment or levy by a sheriff); Up to $5,000 worth of items necessary for the practice of any trade or profession (for example, tools, instruments, books, clothing/uniforms); Up to $1,000 in household furnishings, goods, clothing, appliances, books, pets and other personal items; Money payable to you as the result of court judgments, insurance benefits, child support, and compensation because of sickness, accident, injury or death; Professionally prescribed health aids; and your share in a retirement plan qualified under federal tax law (to find out if a retirement plan is a “qualified plan” you should contact the retirement plan administrator).
CLICK HERE FOR MORE INFORMATION ON EXEMPTIONS IN MD
New Jersey:
Guide from Superior Court of New Jersey
– Methods of Execution: Garnishment of Wages, Seize a Motor Vehicle, Garnishment of Non-Exempt Funds in a Bank Account, Execution against Real Property, and Liens.
– Exempt Property: $1,000 of personal property, welfare, social security, SSI, and unemployment benefits, and retirement accounts like IRAs and 401ks.
CLICK HERE FOR MORE INFORMATION ON NJ EXEMPTIONS
Pennsylvania:
– Methods: Garnishment of Wages, Levy/Seizure a Motor Vehicle, Garnishment of Monies Owed by Third Parties, Garnishment/Seizure of a Bank Account, Foreclosure of Real Property, and Levy/Sale of Personal Property
– Exempt Property: $300 Statutory Exemption; Bibles, school books, sewing machines, uniforms, and equipment; Most wages and unemployment compensation; Social Security benefits; Certain retirement funds and accounts; Certain veteran and armed forces benefits; Certain insurance proceeds; Tenancy by the entireties: Property owned jointly by married couples is protected from individual creditors of one spouse; Medically necessary health aids and tools necessary for a profession; and Life insurance, medical insurance and group insurance benefits.
CLICK HERE FOR MORE INFORMATION ON PA EXEMPTIONS
Tennessee:
Tennessee Administrative Office of Courts Guide
Tennessee Notice to Judgment Debtors
Request to Protect Income and Assets Form
– Methods of Execution: Garnishment of Wages, Garnishment of a Bank Account, Lien/Execution of Real Property, and Attachment/Sale of Personal Property.
– Exemptions: CLICK HERE
Texas:
Guide from Texas State Law Library
– Methods of Execution: Execution against Real or Personal Property and Garnishment of Bank Account
– Exemptions: CLICK HERE
Wyoming:
– Methods of Execution: Execution against Real or Personal Property and Lien against Property
– Exemptions: CLICK HERE
