QUESTION
What assests are protected after a notice that I am being sued for credit card debt?
Asked on Jan 14th, 2012 on Bankruptcy - California
More details to this question:
I was just severed with a notice that I am being sued for credit card debt. What assets are protected? 401K? Wages? Can my wages be garnished? What is worse case scenario?
9 ANSWERS
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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The NC Constitution guarantees that certain assets are exempt from collection. Google exemptions in NC.
Answered on Jan 31st, 2012 at 1:05 PM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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After the judgment is obtained, the creditor can garnish your wages and bank account. They can even levy against personal property. You probably should schedule a free consultation to discuss how bankruptcy might benefit you.
Answered on Jan 30th, 2012 at 5:36 PM
Bankruptcy & Debt Attorney serving Longmont, CO
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William Edward Zurinskas
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Exemptions in Colorado, normally protect 100% of 401k funds. Once a creditor obtains judgment, they can garnish up to 25% of your wages. Creditors may also try to garnish bank accounts and place judgment liens on any real estate you may own. The best advise: Don't let a creditor get a judgment. Get a free consultation with local experienced bankruptcy counsel to learn you rights before judgment enters.
Answered on Jan 30th, 2012 at 4:43 PM
Criminal Defense Attorney serving Portland, OR
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Jacob D. Braunstein, Attorney at Law
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Wages can be garnished if the plaintiff gets a judgment against you. Bank accounts may also be garnished.
Answered on Jan 30th, 2012 at 1:46 PM
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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There is a lengthy list of things that are exempt either partially or fully from the reach of your creditors. However, your wages are generally garnishable up to 25 percent. Depending on the amount of your unsecured debt, you may want to consider bankruptcy.
Answered on Jan 27th, 2012 at 9:10 PM
Chapter 13 Bankruptcy Attorney serving St. Charles, MO
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A & L, Licker Law Firm, LLC
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401K should be protected, they can garnish after a judgment up to 25% of your wages or freeze your bank account. My suggestion is to talk to a bankruptcy attorney to see what options you have.
Answered on Jan 27th, 2012 at 8:56 PM
It depends on a variety of factors and details. Your attorney will be able to tell you exactly what assets are at risk, and whether it's possible to protect them. Your attorney will also be able to provide recommendations to avoid collection activity altogether, so these issues are not a concern.
Answered on Jan 27th, 2012 at 8:55 PM
Kevin Elliott Parks
The worst case scenario is that you'll lose the case on a default by not retaining a lawyer or answering the complaint, then you'll be liable for the debt itself and the attendant costs. Then, your wages and bank accounts can be garnished (not entirely, but up to a certain percentage) for however long it takes to pay off. Additionally, other assets can be attached with liens or the like, if available. And your credit rating takes a hit. Best case scenario is typically that you hire a lawyer and they negotiate a payment plan or a payoff where you save some part of the debt and the legal case goes away. Either way, you shouldn't ignore the complaint and summons, and should try to consult with an attorney in your area as soon as possible.
Answered on Jan 27th, 2012 at 8:48 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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401k is safe but your wages can be garnished, bank account levied and a lien put on your real estate after a judgment is issued. Those are the main risks.
Answered on Jan 27th, 2012 at 6:30 PM