why is attorney suing me if my income is exempt

When another individual wrongs you, you can file a lawsuit against him to collect civil damages. If the person that wronged you in some way does not have any assets or income, suing him is still possible. Due to his lack of assets, however, it will most likely not be worth your time. Lawsuits

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Can you sue someone if they have no assets?

If the person that wronged you in some way does not have any assets or income, suing him is still possible. Due to his lack of assets, however, it will most likely not be worth your time. The ability to sue someone does not depend on the assets or income that they have.

What happens if you file a lawsuit against an individual?

After filing a lawsuit against an individual and receiving a favorable judgment by the court, the plaintiff can enforce the judgment with the backing of the court. If the individual does not have any assets, you will not be able to seize any for the payment of the judgment.

What happens if I owe money to the plaintiff?

If the judge makes a decision that you do, indeed, owe money to the plaintiff, the next step is for the plaintiff to follow-up with an action to collect the money. The possibilities include garnishing your wages if any, or taking your car or property

What happens if I win my debt buyer lawsuit?

When you win your debt buyer lawsuit it normally means that you do NOT owe the debt buyer any money. A judge has ruled that there is no obligation for you to pay the debt buyer. If you don’t owe the debt buyer any money, then the debt buyer must take this off of your credit reports. They hate doing this!

How do you Asset A Judgement proof?

While one way to be judgment proof is to have no proper income, another is only to have assets and income that cannot be seized. This generally includes the following: Income from government benefits such as unemployment or disability.

What assets are exempt from lawsuit in Texas?

Exempt property includes most of what you need to live: Household items, up to $30,000 for a single person and $60,000 for a family. Vehicles, one for each licensed driver in the house. Your homestead, up to 10 acres urban property (single or family) and up to 100 acres rural (single) and 200 acres (family).

What is exempt money?

The law protects certain types of income and property from garnishment by creditors. Creditors cannot take these funds from you to pay off a debt, even if a court issues a judgment to the creditor for a debt. These funds are Exempt.

What income Cannot be garnished in NY?

In New York State, a creditor can garnish the lesser of 10% of your gross wages or 25% of your disposable income to the extent that this amount exceeds 30% of minimum wage. If your disposable income is less than 30 times the minimum wage, it can't be garnished at all.

Can you go to jail for not paying a Judgement?

A lot of people who contact us are worried that not paying their debts could mean going to prison. In almost all cases, the answer to this is no.

Can you lose your home in a lawsuit in Texas?

Texas is a virtual stronghold of property protections from creditors and is one of the safest states to lose a judgment in the United States. For most families, property that can be seized in a judgment is a small percentage of what people own.

Can the court look at your bank account?

To find out if you've got savings or are expecting a pay out, your creditor can get details of your bank accounts and other financial circumstances. To do this they can apply to the court for an order to obtain information. You'll have to go to court to give this information on oath.

Is filing exempt illegal?

Is Filing as Exempt Illegal? No, filing as exempt is not illegal – however you must meet a series of criteria in order to file exempt status on your Form W-4. Also, even if you qualify for an exemption, your employer will still withhold for Social Security and Medicare taxes.

What type of bank accounts Cannot be garnished?

In many states, some IRS-designated trust accounts may be exempt from creditor garnishment. This includes individual retirement accounts (IRAs), pension accounts and annuity accounts. Assets (including bank accounts) held in what's known as an irrevocable living trust cannot be accessed by creditors.

How do you get around wage garnishment?

Three Ways to Stop a GarnishmentFull Payment to the Creditor. If the creditor receives full satisfaction of the debt obligation including their court cost, the judgment will be satisfied and the wage garnishment stopped. ... Filing an Objection with the Court. ... File for Bankruptcy Protection.

What assets are exempt from creditors in New York?

State law in New York protects certain bank accounts from creditors and debt collectors....The benefits and retirement funds that are exempt include:Public Assistance.SSI.Spousal Support.Veterans' benefits.Child Support.Railroad Retirement benefits.Worker's Compensation.Private and Public Pensions.More items...

How long before a creditor can garnish wages?

Garnishment is a legal procedure used by creditors to collect debts that are owed to them. It is generally applied in cases where accounts are at least six months past due and no effort has been made by the debtor to establish a repayment arrangement.

Is 401k protected from lawsuit in Texas?

Employer-sponsored accounts are protected by the Employee Retirement Income Security Act. As such, employer-sponsored 401(k) plans are generally safe from litigation. The only parties that can make claims on that money are the Internal Revenue Service or spouses.

Can my IRA be taken in a lawsuit in Texas?

Yes, your home and retirement accounts can't be taken from you by the party who sued and won the judgment. When you take distributions from your IRAs, the amounts you withdraw are also exempt for 60 days after the date of distribution.

Does Texas have asset protection laws?

Texas does not have a domestic asset protection trust law. But fortunately, Texas law already provides a good deal of asset protection for certain types of assets even without a Trust. For example: Texas law protects your homestead from forced sale to pay most debts and judgments.

What are non exempt assets?

“Nonexempt assets are those that can be sold by the trustee assigned to your case by a bankruptcy court.” Some examples of nonexempt assets include: Vacation homes or other properties that are not your primary residence. New or expensive cars. Musical instruments that you do not need for work.

What Is A Wage Garnishment?

Most creditors cannot garnish your wages without first getting a money judgment against you. This means the creditor must sue you in court and then...

Wage Garnishment Exemptions

Wage garnishment exemptions are a form of wage protection that prevents the garnishing creditor from taking certain kinds of income or more than a...

How A Wage Exemption Works

Here's an example of how you might use an exemption to protect a portion of your wages from garnishment:You receive a paycheck that was 25% short o...

How to File A Claim of Exemption

In order to take advantage of your state’s exemptions, you must file a claim of exemption. You do this by filing a document with the court that iss...

Stop A Wage Garnishment by Filing For Bankruptcy

Bankruptcy works well to stop most wage garnishments in their tracks. If you’re worried that you’ll lose everything, you’re not alone. Many people...

How much can creditors take if you are sued?

If you are sued on a consumer debt, creditors cannot take any of your wages if you earn less than $479.15 weekly (35x the state minimum hourly wage). If you earn more than this amount, you may still keep 35x the state minimum hourly wage or 80% of your net pay, whichever is more.

Can you defend a lawsuit?

Yes, if you want to defend (fight) the lawsuit/complaint. If you do not file an Answer (formal written response to the lawsuit), the court will enter a Default Judgment against you. This means the court will rule in favor of the plaintiff (person who is suing you).

Can you file a declaration with the court?

You can file the Declaration with the Court and send it to Plaintiff or Plaintiff’s attorney, if there is one, at the same time you file your Notice of Appearance and/or Answer. See How to Answer a Lawsuit for Debt Collection or the online Answer a Lawsuit for Debt Collection interview program.

How much debt do you need to file a small claims lawsuit?

Every state has a small claims court that handles cases based on small financial matters. Typically, the matter must involve a debt of less than $5,000 to be heard in small claims court.

What happens if someone wrongs you?

When another individual wrongs you, you can file a lawsuit against him to collect civil damages. If the person that wronged you in some way does not have any assets or income, suing him is still possible. Due to his lack of assets, however, it will most likely not be worth your time.

Can you collect Social Security if you don't have assets?

After filing a lawsuit against an individual and receiving a favorable judgment by the court, the plaintiff can enforce the judgment with the backing of the court. If the individual does not have any assets, you will not be able to seize any for the payment of the judgment. If the individual does not have any income, you may be able to collect on future earnings. If the debtor only collects Social Security or disability, however, the federal government protects these benefits against collections.

Can you sue someone with no assets?

Anyone can potentially have a lawsuit filed against him. In many cases, you may not necessarily know all of the assets that a person has until you file a lawsuit. People with no assets or income have lawsuits filed against them and receive judgments.

Can you garnish someone's wages?

If the individual does not have any assets, it still can sometimes work in your favor to file a lawsuit. If the court makes a judgment in your favor, you can use it to garnish the individual's wages. Even if he does not have income at the moment, he may eventually decide to get a job. You could then use the judgment to get a wage garnishment. This will pay you for the judgment with money directly out of his paycheck each time he receives a paycheck. Depending on state law, the amount you can garnish varies. Typically you'll have access to approximately 25 percent of the debtor's disposable income -- the amount left after mandatory deductions like Social Security and Medicare. However, the garnishment cannot leave the debtor destitute and without a means to pay his necessary bills like rent, utilities and food. If the debtor has a limited income, it may take an extended period of time to retrieve the money owed.

What Happens If Someone Sues You and You Don’t Have the Money?

Those letters get more serious as time goes on. And ultimately, the word “sue” appears. You get a notice that you are being sued and you face a court appearance.

What happens if you state you have no money?

The other thing is, if you state you have no money and no assets, it would not make sense for the creditor to take you to court. There is nothing to be gained by doing so.

What questions can a plaintiff ask?

You can ask the plaintiff to answer questions in writing about your debt. These questions can include when did the debt occur, how much it is, what interest rate was used, and how long did the company have the right to collect the debt?

How much can a garnishment take?

You may be employed but not have enough money to pay the full amount of the judgment against you. Creditors can garnish your wages by taking up to 25 percent of your earnings to recover what they lost.

What to do if you don't have money right now?

The first thing you should probably do is send a letter to your creditor stating that your situation changed and you just don’t have the money right now to make your payments. A couple of good things can happen from this action.

Who is the burden of proof in a lawsuit?

The burden of proof is on your creditor (the plaintiff) who must prove that you owe the debt and must prove the amount of the debt. There is a process of Discovery that allows you to get information from the other side.

Can creditors make your debt public?

And they cannot make your debt public by sending notices in envelopes or postcards that show you have a debt. They also cannot tell anyone else about your debt including employers, relatives, friends, and neighbors. Conversely, creditors must identify both the name of the person calling and the name of the creditor they represent. ...

What are some examples of legal grounds for suing?

For example, treating you differently because of your skin color is discrimination, speaking lewd comments about you is sexual harassment, or not paying you overtime is a wage dispute.

What to do when you are suing for damages?

Be specific as to how you want your issue resolved. If you are suing for damages, state the compensation that you would like to recover in monetary terms.

How to Sue Your Employer with DoNotPay?

Regardless of the reason why you are suing your employer, there are some considerations you need to take. The first is that filing a lawsuit involves a lot of red tapes and requires you to fill up several forms. Let DoNotPay do the work for you! We are the world’s first lawyer and we can help you file a lawsuit in a breeze. Our track record of successfully suing companies involve big names such as:

Can you sue your employer for a violation of the law?

If you’ve been experiencing any of the above violations and have failed to resolve them internally with HR, then you may have the legal ground to sue your employer. The most challenging part of suing your employer is proving they did something illegal. Nonetheless, here are a few pointers to help you prepare for a successful claim:

Can you sue an employer for a violation of your employment rights?

When you believe your employment rights have been violated, you can sue an employer. You should know that there are laws in place to protect you from retaliation, discrimination, and other violations. There are a variety of illegal practices that could be reasons for employees to sue their employers, but here are some of the most common ones:

Do you have to file a grievance before filing a lawsuit?

Review your contract and your employee handbook before you file a lawsuit. Some circumstances may require that you file a grievance procedure and yours could be one.

Can You Sue an Employer for Emotional Distress?

You are probably wondering if it would be possible to sue an employer for injuries that do not physically manifest. The answer is yes — if your mental anguish is a direct result of negligent or intentional acts, then you can sue for personal injury damages. Emotional distress is a complicated legal subject so it is important to understand what constitutes emotional distress in the eyes of the law. There are two types of emotional distress that you can claim as follows:

What happens if someone sues you?

That means if they sue you and come after you, you have to make them aware of the source of your income. You have to make the bank aware, you have to make the collector aware; and once you make them aware that you’re on social security, they cannot legally touch it.

What to do if you are being harassed by a debt collector?

If you are being harassed by a debt collector, contact an attorney whose practice focuses on issues relating to the Fair Debt Collection Practices Act (FDCPA) to discuss your situation. Consultations are free, without obligation and are strictly confidential.

Can you ignore a lawsuit?

Never ignore lawsuits. The majority of lawsuits that are filed end up in default judgment because the consumer never shows up. The biggest thing I hear from consumers is, ‘I can’t afford a lawyer and, gosh, I did have a Visa or a MasterCard at some point, so I don’t have any defense.’. Yes, you do.

What happens if you owe back taxes?

For instance, an IRS tax assessment works just like a court judgment, which means that if you owe back taxes, the IRS can wipe out your bank account or force your employer to deduct money from your paycheck without first getting a court judgment. A similar lien is the mechanic's lien, although with this lien, the creditor usually places it on real ...

What happens when a creditor gets a money judgment?

Once the creditor has a money judgment, it can place an involuntary lien on your property.

What happens if a creditor doesn't have a property lien?

If a creditor doesn’t have a property lien or a statutory collection right, then the creditor must file a lawsuit, prove that you owe money, and get a money judgment against you . Most major credit card companies, healthcare providers, personal loan lenders, and service providers must use this approach.

What happens if you are permanently judgment proof?

If you’re permanently judgment proof—you know that your situation won’t change in the future—you don’t need to worry. Creditors won’t be able to take action against you.

What is garnishment of paycheck?

requiring your employer to take money out of your paycheck (wage garnishment)

Can creditors garnish wages?

Such creditors must first go to court and win a money judgment against you. Other creditors can skip the court step and instead, start garnishing your wages, for instance. The procedure required varies depending on the type of debt you owe.

Can you be judgment proof six months down the road?

It’s common to recover after a financial setback, and being judgment proof now doesn’t mean that you’ll be in the same situation six months down the road. For instance, they: have little or no equity in a home or other real estate. own minimal personal property (things other than real estate), and.