Credit - Collections and Civil Actions - Part 2

Judgment holders will never collect unless Superman movie have something that they can take, such as real estate, an auto, a bank account, or wages. Using a judgment, liens are placed on property, while levies are used to tap bank accounts and garnish wages. Liens are very inexpensive in most cases, and since a car donation charity creditor took the time to obtain a judgment, the cost of a lien is a non issue.

Social Security income, VA pensions, pension benefits, unemployment benefits, welfare, and child support (to the extent it is actually needed for basic living expenses) are exempt from garnishment.

If you don't own any property (that the creditor knows of) on which liens may be placed, have wages (that the creditor knows of) to garnish, or have bank accounts (that the creditor knows of) that may be levied, you can really have unsecured creditors over a barrel, especially if they can't serve you and obtain a judgment in the first place. Creditors know girls comics difficult it can be to collect on unsecured debt, so they're usually much more flexible with debtors.

It's important to note that liens are secured by the property to which they are attached, so even if the original debt was a credit card account and a lien is placed on property (using a judgment), the creditor may or may not need to serve you again to force a sale of the property, depending on your state's laws governing liens. Moreover, consider the following:

Some states permit the forced sale of real 1955 Topps baseball cards for lien holders, while others don't. In Ohio, for example, even if a creditor doesn't hold an actual mortgage, a creditor holding a judgment can place a lien on real estate and force a sale. But in other states, the laws prevent foreclosure unless the party is an actual mortgage holder. (Even if a state doesn't permit the forced sale of real estate and autos, the debt must be paid in full at the time the property is sold.)

Some states permit the forced sale of autos for lien holders, while others don't. In Oregon, for example, some types of creditors can place a lien on a car, but they can't force the sale of it. (And yet even if a state permits the forced sale of an auto, a judgment holder would have to find out where the auto is registered/titled first.)

Some states have exceptions for the principal place of residence, making such a home impenetrable to most creditors. Florida is one such state, though it requires that both a Homestead Property Tax Exemption and Homestead Asset Protection be filed with Florida Homestead Services. That filing must be in place before any judgment lien or levy. Some debts are not subject to the barrier, such as (a) mortgages, (b) real estate back taxes, (c) obligations contracted for the purchase (e.g., line of credit used for the purchase), and (d) improvement or repair of the home (e.g., where a contractor performed work on the home, such as adding a skylight). Homeowner's Aurora Dracula model liens may not be covered under the Homestead Protection Law, and foreclosure can occur based on contract law. Florida also requires that the debtor be a resident of Florida and reside on the property, and any homestead claim must be legal and proper. This example serves to illustrate how complex this can be.

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