Dealing with a Civil Judgment: What Happens When You Can’t Afford to Pay

Dealing with a civil judgment can be a daunting task, especially if you find yourself in a position where you can't afford to pay. Understanding the legal processes and possible solutions can provide some clarity and peace of mind.

Understanding Civil Judgments

A civil judgment is a court-issued verdict that legally obligates the defendant to pay a certain amount of money to the plaintiff. The judgment doesn't necessarily mean you have to pay immediately, but it does require you to comply with a payment plan or face enforcement actions.

Enforcement Actions for Unpaid Judgments

Once a judgment has been issued, the plaintiff can take several steps to enforce the judgment:

Wage Garnishment: The court may order a portion of your paycheck to be deducted and sent to the plaintiff. Bank Account Levy: Funds from your bank account can be seized if they are from the judgment debtor. Lien on Property: The judgment can potentially be used to place a lien on your property, making it difficult to sell if you're in that situation.

However, if you genuinely believe you cannot afford to pay the judgment, there are several steps you can take to address the situation.

Exploring Bankruptcy Protection

If you are struggling to pay a judgment and have no assets of equal value, you might want to consider speaking with a lawyer about bankruptcy options. Bankruptcy can provide some relief in several ways:

Discharge of Judgment: Certain types of judgments can be discharged, meaning you are no longer legally obligated to pay them. However, some judgments, such as those for child support or certain types of taxes, cannot be discharged. Chapter 7 Bankruptcy: This allows for the liquidation of non-exempt assets to pay off debts, or for the discharge of eligible debts. Chapter 13 Bankruptcy: This allows for a restructuring of your debts over a period of three to five years, with the aim of repaying a portion of the judgment.

It's crucial to consult with a bankruptcy attorney to understand which option is best for your situation.

Other Considerations

If you have no attachable assets and are likely to maintain that status, the creditor's efforts to enforce the judgment may be futile. This is often the case with older, retired individuals living off exempt retirement savings or those who are eligible for disability income. However, it's important to ensure that:

The assets in question are truly exempt from legal attachment. There are no hidden or vulnerable assets that could be used to settle the judgment.

For instance, a large judgment against a homeless person with no valuable assets would be challenging to collect, as they are considered judgment proof. This is often referred to as the inability to "get blood out of a stone" or "judgment proof."

Escalating to Bankruptcy

Even if you can't afford to pay a judgment, the government may still impose certain measures to ensure the debtor pays. For example, if you own a modest home and your primary source of income is Social Security, the government might require a portion of your Social Security benefits to be paid to cover the judgment. If you attempt to evade these requirements, a court could garnish your benefits.

It's important to note that there are nuanced legal differences depending on the type of judgment and the laws in your state. For instance, in the example provided, while courts generally cannot garnish Social Security benefits, there might be exceptions under certain circumstances.

Conclusion

When you face a civil judgment and find yourself unable to afford to pay, it's crucial to understand your rights and explore all possible options. While there is no guarantee of relief, speaking with a legal professional can provide you with the knowledge and support needed to navigate this challenging situation.