Independence Day reminds us of freedoms—including the legal doctrine of being “judgment proof.” If your assets and income are exempt, creditors can sue but they can’t collect.
In New York, unemployment benefits, disability, Social Security, veterans’ benefits, and certain pensions are off‑limits. Bank accounts with less than $3,525 of statutorily exempt funds are shielded under the Exempt Income Protection Act (EIPA).
Knowing you’re judgment proof changes strategy. You may elect to dispute the debt, negotiate pennies‑on‑the‑dollar, or simply monitor the statute of limitations until it expires.
However, circumstances change. Returning to work or inheriting property can suddenly expose you. That’s why periodic reviews are critical.
Creditors may still seek default judgments hoping you won’t respond. Filing an answer preserves rights and prevents wage garnishment orders that scare employers.
At Georgiou Law, we craft sworn affidavits of income and assets to demonstrate inability to pay, often persuading creditors to discontinue litigation altogether.
Legal Disclaimer: This article is not legal advice. An attorney‑client relationship forms only upon written agreement.
⏰ Protect your freedom now. Schedule a free, confidential evaluation with Georgiou Law at (917) 764‑3072 before creditors strike.
