![]() ![]() If you start earning more money your wages are still protected from being garnished to pay a judgment on a consumer debt. How often they call will depend on the creditor. It is likely that the creditors will still contact you to try and collect on the judgment. If you get an order to appear in court, be sure to go. A judgment means the company can try to collect from you, it does not mean you have to pay them if you are unable to. No, you cannot go to jail for not paying a judgment on a consumer debt. This way you no longer have to make any payments.Ĭan I go to jail for not paying a judgment? ![]() If you are judgment proof and do not have a lot of debts, it could be easier and better for you to allow the creditors to take you to court and obtain a judgment against you instead of filing bankruptcy. ![]() Why is this a better option than bankruptcy?īankruptcy can be a long process and during it you may still have to make some payments on some debts. There are some other forms of assets that may be protected from a judgment but this list includes the most common exemptions. Health Aids – Professionally prescribed health aids such as a CPAP machine, oxygen tanks, or other medical equipment required by a doctor are always exempt.ġ) Social security benefit, unemployment compensation, or a local public assistance benefit ģ) A disability benefit or an illness or unemployment benefit Ĥ) Alimony, support, or separate maintenance orĥ) A payment from stock bonus, pension, profit sharing, annuity, or similar plan or contract on account of illness, disability, death, age, or length of service. Life Insurance – Any life insurance contract you own that has not yet matured, other than a credit life insurance contract, but any cash value is limited to $4,725. ![]() This means that if you did not use up all of your exemptions that are listed above, then you can use up to $5,900 worth of the above listed exemptions to count towards other property. Other Property – Your interest in any property is called the “Wild Card” exemption, not to exceed $5,900 in value of any unused exemption amount. Tools of the Trade – Up to $1,775 worth of implements, professional books, or tools and equipment that you need for work. Liquid Assets – If you have less than $5,900 in things like cash, deposits, unpaid earnings, accrued vacation pay, refunds, prepayments, and other receivables, these are exempt Jewelry – If the total value of all of your jewelry added together is less than $1,175 it is protected from being sold to satisfy a judgment on a consumer debt. Household Items- If all of the items in your home such as household furnishings, household goods, clothing, appliances, books, animals, crops, or musical instruments are worth less than $4,725 when the garage-sale-value of each item is added together then they are all protected from being sold to satisfy the judgment. Vehicle – If you have less than $5,900 in equity in one vehicle (subtracting what is owed from the value of the vehicle) that vehicle is exempt. This means if you have a mortgage on your $100,000 house and you still owe $85,000 on your mortgage then you only have $15,000 in equity. Real Property (your house of land) – If you have less than $59,100 in equity in your home then it is exempt from attachment, levy or sale. This means they cannot garnish your wages to pay a judgment on a consumer debt. Wages – There is no wage garnishment in South Carolina for judgments on consumer debt. Note: The exemption amounts change every two years and can be doubled if jointly owned with a spouse. This can be a better option than bankruptcy because ġ) You will no longer have to make payments on the debt unless you get new property or the property you have increases in value beyond the exemption amount.Ģ) The judgment expires after 10 years and can no longer be collected.ģ) You don’t have to submit your debts, assets, and income to the Bankruptcy Court.Ĭommon Exemptions that could make you Judgment Proof If you are judgment proof and have a money judgment entered against you, the creditor cannot collect the judgment from you. If there is nothing they can legally take from you then you are “Judgment Proof”. If the exemptions apply to you and your personal property, there is nothing the judgment creditor can legally take from you. In South Carolina there are certain kinds of property that cannot be taken from you to satisfy a judgment. ![]()
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