Protecting Assets Once Creditors Have Judgements

If you are like most bankruptcy clients you are getting called and harassed by debt collectors. After the calling the creditors will send your file to collection lawyers. The collection lawyers will then take judgements against you after serving you a Summons and Complaint. In most cases people do not answer the lawsuit and the creditor takes a default judgment against them. Once the judgment is entered the creditor generally takes two approaches to collecting the debt, they will garnish banks accounts or wages. In order to protect these assets you should make sure you never tell the collectors where you work. This information will be saved by the creditors to use against you once they have a judgement. The second thing you should do is make sure you do not keep money in bank accounts with your name on the account. The creditors can freeze the money in your bank account and then take the money to pay off your judgement debt. Once the funds are frozen you have a couple of options to get the money back, the first is fill our exemption forms that will get sent after the garnishment. In most cases your funds will not be exempt and the creditor will take the money. The second is look into filing for bankruptcy protection, which will stop all wage and bank garnishments. In some cases you can even get back garnished funds through the bankruptcy process.