How can a creditor who wins a lawsuit judgment collect from a debtor who is unable to pay.?

Answer 1

The laws of the state in which the debtor resides determine what action a judgment creditor can take to recover monies owed. In the majority of states wage garnishment or bank account levy (including joint accounts) are allowed and are the most commonly used action by a creditor. Other non exempt property owned by the debtor is subject to seizure and sale and liens against real property in most cases are also possible. Generally the same exemptions that are allowed when a debtor files bankruptcy are those that are allowed to protect real and personal property against a judgment execution. Homeowner's should be aware of their state's homestead laws especially whether the home is automatically protected under state law or a homestead claim needs to be filed on the property. States that do not allow wage garnishment for creditor debt are Pennsylvania, North and South Carolina, Texas (with exceptions). Several other states such as Florida have very strict garnishment laws which make it difficult for a head of household to have wages attached. Married couples living in community property states are generally responsible for debt regardless of which spouse incurred such (exceptions Texas and Wisconsin). Married couples living in non community property states are not responsible for each others solely incurred debt but joint property can be attached by creditor judgment with the exception of property held as Tenancy By The Entirety.