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Brent Blanchard
Brent Blanchard, Bankruptcy Attorney
Category: Bankruptcy Law
Satisfied Customers: 1975
Experience:  Twelve years experience in all aspects of debtor & creditor BK.
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I am 76 yrs old, live only on Soc. Sec., have no assets, real

Resolved Question:

I am 76 yrs old, live only on Soc. Sec., have no assets, real estate, pay rent. Credit card co. threatens to sue me for $8000 and place a "judgement" upon me. How will this affect my future plans and how long does a judgement remain on records?
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Brent Blanchard replied 8 years ago.
Sounds like you are what the lawyers call "judgment-proof",Customer

Your SS payments are exempt from execution or garnishment/interception. If the bank knows your accounts contain NO money that was NOT from SSI, then those balances are probably exempt, too. (Don't rely on the bank to protect you--only your attorney has a firm duty to protect you and only you.)

Judgments in AZ remain enforceable for 5 years, and can be renewed for another 5 if done before the 5 years are up.

Judgments can stay on your credit report for seven years.

If you have NO plans of ever borrowing money or using credit ever again, having a judgment on your credit report causes no harm.

However, if you inherit any money or hit the lottery, the credit card company could then try to execute on its judgment (PLUS collection costs, interest, and maybe even attorney's fees).

Hope this helps.


Thank you.
Customer: replied 8 years ago.

One thing might happen. I may take over a condo which is paid in full and seek a Reverse Mortgage. Would this be subject the judgement?

Expert:  Brent Blanchard replied 8 years ago.
Yes. Judgments are often recorded as a lien against the judgment debtor's real estate. Homestead exemptions would prevent execution and sale of the real estate if the place is not worth too much, but the reverse mortgage company *might* want to subtratct payoff of the judgment in the total amount you receive in the reverse mortgage. <br /> <br />None of my clients has ever done a reverse mortgage, so this part might be more appropriate for a financial expert familiar with how the lenders do business in AZ. <br /> <br />Thank you.

PS--unless the paid in full condo is worth less than $25,000 and its being given to you by a husband-wife pair, you may also have some gift tax implications by taking it over. Look before you leap.

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