What assests are protected after a notice that I am being sued for credit card debt? - Bankruptcy Law Questions and Answers- LawQA.com

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What assests are protected after a notice that I am being sued for credit card debt?

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?

Answer By Kevin Heupel
Heupel Law
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A variety of assets are protected up to certain dollar amounts. For example, you can protect your car up to $5,000, your home up to $60,000 of equity, and your 401k is 100% protected. As for your wages though, the creditor can garnish up to 25% of your net wage for up to six months. The creditor can also garnish your bank account. While it's tempting to hide from the creditor, it's a short-lived strategy and one that rarely works. Take control of your situation by either establishing a payment plan with the creditor or look to file bankruptcy.

Answer Applies to: Colorado
Replied: 2/13/2012

Mercado & Hartung, PLLC
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In WA, your wages can be garnished as well as your bank account. A Judgment becomes on your property as well

Answer Applies to: Washington
Replied: 1/31/2012

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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Yes, your wages can be garnished. The 401k is safe. Go see a lawyer about filing for bankruptcy protection. Note that I used the word "protection." That is what bankruptcy is "protection." Don't be afraid of it.

Answer Applies to: California
Replied: 1/31/2012

Answer By J.M. Cook

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The NC Constitution guarantees that certain assets are exempt from collection. Google exemptions in NC.

Answer Applies to: North Carolina
Replied: 1/31/2012

Answer By Amy B. Norberg

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The assets that are protected include your 401k, pension, and some other retirement holdings. In a bankruptcy, these retirement earnings cannot be seized. If your creditor obtains a judgment, then they can garnish wages or bank funds.

Answer Applies to: Minnesota
Replied: 1/31/2012

Answer By Phil Boardman
Philip R. Boardman, Attorney at Law
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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.

Answer Applies to: Virginia
Replied: 1/30/2012

Answer By Bill Zurinskas
Bankruptcy Law Center
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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.

Answer Applies to: Colorado
Replied: 1/30/2012

Braunstein Law, PC
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Wages can be garnished if the plaintiff gets a judgment against you. Bank accounts may also be garnished.

Answer Applies to: Oregon
Replied: 1/28/2012

Answer By Michael Johnson
Law Office of Michael Johnson
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It depends on many facts.

Answer Applies to: Florida
Replied: 1/28/2012

Answer By David Benson
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.

Answer Applies to: Ohio
Replied: 1/27/2012

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