Some websites and so-called legal “experts” give senior citizens advice about dealing with debt that amounts to advising you to glue a helmet to your head for protection from a possible meteor strike. Could it happen? It could. Will it happen? Well, the odds of being struck by a meteoriate are about one in 1,600,000. The likelihood of a credit card company wanting your 2008 Toyota Camry is just about as remote.

We believe senior citizens deserve access to information about the laws protecting their assets and social security and retirement incomes. Just because a person is not an attorney does not mean he or she cannot understand basic information and make better decisions based on understanding. For too long, access to basic legal information about what a debt collector really can do have been kept behind terrifying warnings and raised eyebrows of judgment.

The truth is, a lot of people are struggling with debt. Senior citizens are not immune to this problem. The National Counsel on Aging reports that about a third of senior households have no money left over each month after all debt expenses are met. And these are the households that can meet their debt expenses.

It might be hard to understand why access to realistic information about debt collection matters, until you're the one trying to pay for housing, medication, food and other basic expenses on a fixed income. When advice about debt comes without any consideration for the situation of the person seeking help, financial decisions are made based on unreasonable worry. We believe all senior citizens, disabled persons and veterans have the right to choose survival over paying for old debt.

What Does It Mean To Be Judgment Proof?

Judgment proof means a person, income or an asset is not vunerable to a judgment. In other words, a judgment proof person does not have any income vulnerable to garnishments or levies and none of their assets are worth more than the amounts protected by state and federal laws.

When is a Senior Citizen Judgment Proof?

A senior citizen is judgment proof when a creditor with a judgment against him cannot get any of his or her income or property through enforcement of the judgment.

Many Senior Citizens Are Judgment Proof.

A lot of senior citizens are judgment proof. A judgment allows the creditor to file what is called a "writ of execution", which in turn allows the creditor to garnish funds held by a third party that belong to you. These funds could be in a bank account or your employer. If your only income is social security, VA benefits, or most types of pensions, however, these funds are protected. They are judgment proof. Even net wages of $217.50 per week are protected from garnishment by federal law. Furthermore, in Pennsylvania, North Carolina, South Carolina and Texas, garnishment of wages is not permitted by law.

What About the Money In a Bank Account?

Federal regulations instruct banks and credit unions that twice the amount of monthly social security electronically deposited into a bank account is automatically protected from garnishment. These regulations do not require the funds in the bank account at time of the garnishment to be social security funds. The only requirement is that the social security check is directly deposited into the account.

If there is excess money in the bank account – more than twice the amount of the social security deposit – or if a senior has another bank account, a garnishment could temporarily freeze the senior’s account. If nothing is done, the money would be sent to judgment holder. In that instance a senior would need to file what is called a “claim of exemption.” This is a form shows the money in the garnished bank account came from monies that were exempt, such as social security, pension, disability or VA benefits.

Freezes on accounts can be largely avoided by having only one bank account – the bank account into which social security is deposited – and making sure there is never more than twice the amount of monthly social security in that account.