How this affects your spouse depends on the state you live in. What Happens to Your Tax Refund in Bankruptcy. These delay periods will vary depending on the type of action and the . a judgment creditor of your spouse can garnish your joint accounts, and. Judgments damage a debtor's credit score and can make it difficult for you and your spouse to obtain credit to make purchases together. And if your wages are low, there are additional protectionsyou must be left with weekly income equal to 30 times the federal hourly minimum wage. Some common types of collateral are cars, homes, or appliances. 3 minute read Upsolve is a nonprofit tool that helps you file bankruptcy for free.Think TurboTax for bankruptcy. "Can a Debt Collector Take My Social Security or VA Benefits? Even though you may be judgment proof, debt collection agencies may still try to collect the debt they owe. Typically the only type of income that is not subject to garnishment is federal benefits such as social security benefits, SSI, disability benefits, VA benefits, or retirement benefits. Judgments typically last 20 years, so its important to know if theres one against you. There is so much information needed to file bankruptcy. Keep this money separate from any other income or earnings. Error message | View complete answer on https://kretzerfirm.com. ", National Association of REALTORS. ", County of Napa. A judgement against your spouse can have a very negative impact on your own credit score and financial future. Certain debts owed to the government may also result in garnishment, even without a judgment. Once a creditor has a judgment, they have additional ways of getting you to pay them. If you live in one of the nine community property states, the law says everything either spouse earns during marriage belongs to both of you equally. The other states apply a common-law standard to marital finances. Spun out of Harvard Law School, our team includes lawyers, engineers, and judges. For example, if you have a joint credit card account with your spouse, and you default on the payments, your spouse may be held liable and required to repay the debt. If you default on the loan, your spouse may be held liable and required to repay the debt. And since wages are considered community property if you have unpaid debts that result in judgments against you, your spouses wages can be garnished also. That means a judgment creditor cant seize or sell your home if its fully covered by the homestead exemption available to you. Exempt property includes most of what you need to live: Not when a lawsuit has been filed against you.

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