Collecting on a Judgment
How Does a Creditor Collect on a Judgment?
A creditor can use a judgment granted by the court, to recover a debt that you owe them. They may put a lien against a property that you own. They cannot force the sale of the property; however when it is sold, the debt will be paid first.
They can use the judgment to obtain a garnishment order, such as a bank account garnishment, which enables them to obtain funds that are in your bank account; or they can attempt wage garnishment. Wage garnishment happens when your employer withholds part of your compensation to pay your debts. Your wages usually can be garnished only as the result of a court order.
Laws vary from state to state. Not every state permits wage garnishment, so you need to consult with an attorney familiar with the laws in your state to see what your rights are.
In addition, many federal benefits are exempt from garnishment, including:
- Social Security Benefits
- Supplemental Security Income (SSI) Benefits
- Veterans’ Benefits
- Civil Service and Federal Retirement and Disability Benefits
- Service Members’ Pay
- Military Annuities and Survivors’ Benefits
- Student Assistance
- Railroad Retirement Benefits
- Merchant Seamen Wages
- Longshoremen’s and Harbor Workers’ Death and Disability Benefits
- Foreign Service Retirement and Disability Benefits
- Compensation for Injury, Death, or Detention of Employees of U.S. Contractors Outside the U.S.
- Federal Emergency Management Agency Federal Disaster Assistance
Federal benefits may be garnished under certain circumstances, including delinquent taxes, alimony, child support, or student loans.