What can be seized after a financial judgment?

Answer 1

Any assets needed to satisfy the debt can be seized. The party must provide a receipt and track all proceeds. Anything obtained over and above what is needed to satisfy the judgment must be returned. If the judgment is for $5,000 and they seize items and sell them for $6,000, they must return the difference.

Other Contributor OpinionsAll US states have a list of exemptions to protect real and personal property from a judgment creditor, these exemptions are usually the same as those allowed in bankruptcy, plus non bankruptcy federal exemptions are available in some cases.

All SS benefits, public assistance benefits and the majority of private pensions are exempt from creditor attachment.

Generally the most important exemption for most people will be that of the Homestead, which protects the primary residence from a forced sale by the judgment creditor, several states such as Texas have specific laws that do not allow the forced sale of a primary residence to satisfy a judgment.

There is also added protection for married couples living in states where marital property both real and personal can be held as Tenancy By The Entirety and only one spouse is the debtor.

Answer 2

States establish laws concerning what personal and real property can be attached by creditor judgments. In the majority of US states the debtor's wages can be garnished or bank account levied. Secured property such as a vehicle or home can generally be protected by the exemption allowed or a lien placed against real property belonging to the debtor. It is extremely important for homeowner's to be knowledgeable about the homestead exemption and how the primary residence should be titled and/or filed according to the state law. Some states have the homestead exemption "automatically" included in state statutes, other states require that a declaration of homestead be filed in the names of all the persons listed on the deed/title to the property. Exemptions that are allowed under the bankruptcy laws of the state in which the debtor resides are the same as those used to protect designated property from seizure by a judgment creditor. Non federal bankruptcy exemptions may also be applicable, (Social Security benefits, miltary or government pensions, etc.). Judgment exemptions are NOT automatically granted, the judgment debtor must file the claim for such with the court and the judgment creditor's legal counsel.