No Assets + Little Income = Judgement Proof?

[BKisSucky]

Hi Guys, I just read this in another thread. Is this true? I have zero assets, very little income and TONS of debt.

After reading this, is BK NOT the way to go on this? Just looking for some opinions...I realize I should talk to an attorney.

Thanks guys!

B

[aa06a47]

Here is my suggestion, you are "bullet" proof now, but do you expect your circumstances will change? They may not get anything from you today, but if things change down the road, they might dig up an asset or two. My personal believe, I would make it official and get the debt discharged. You'll be starting fresh again, and from the sounds of it, you will be chapter 7. That way, down the road, they will not bother you anymore.

[HopeinHorizon]

Well, Learn what the Statute of Limitations on your debt is...

If you plan to be on the up and up in 2 years with a lot of assets, thats typically not long enough for the SOL to expire, and at that time creditors can file for judgements...

However, if it is going to be 10+ years before your back on your feet a lot of states SOL's will have expired on your debt and they can't do anything to you any longer...

[SinkingFast]

Plus you need to check your State's rules on wage Garnishment. If you work, they can garnish your wages. Where we live that can be up to 25% of your earnings.

Also, many employers don't like to mess with garnishments and often require employees to dispose of the matter in a short period of time or loose their job.

[lostsoul23]

It depends on your state, as mentioned. Judgements can be issued against you & any property you own, your bank account(s) can be garnished, etc. All depends on the creditor & amounts, as well as SOL. As far as getting fired for garnishments, at one time it was illegal to be fired for that, however, you best believe if your employer has to incure expense because of it, or whatever, they will find a reason for it. Little income means nothing...I mean, it used to be that social security was untouchable as being garnished and that is no longer the case.