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In a situation with multiple judgements against an individual, does the first judgement have to be satisfied before the next one

Mc Dermitt, NV |

Multiple judgements in place in several states. Can they be forced all at once or does the oldest have to be satisfied first, and so on? Bankruptcy seems the way, but I am finally getting back healty and business is steamrolling. I have no desire for bankruptcy, but if all of the judgements can drop on me, meaning they can seize what very little I have at the moment and all at once I have no recourse.

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Attorney answers 2

Posted

They can be all forced at once, but there are limits. Take a look at NRS 21.090 (http://www.leg.state.nv.us/NRS/NRS-021.html#NRS021Sec090) to see the exemptions provided in Nevada.

The two primary tactics used by most judgment collections attorneys is a wage garnishment and a bank garnishment.

If you have less than $1k in your bank account (or $2k if you are married), then if they try to garnish you bank account you need to file a Notice of Exemption with the court, serve it on the judgment creditor and constable and they'll give you your money back, or unfreeze it depending on how quick you file/serve it.

The maximum a judgment creditor (other than the IRS or for past due child/spousal support) can take from your wages is 25% of the take-home (net) pay. In this case, if two creditors garnish your wages, the first one gets 25% and the second one waits in line until the first garnishment expires. i.e. they can't hit you for 50% of your wages.

If you have a lot of judgments out there and you have a business idea that you want to grow from scratch, or a business that is not worth much now but may grow in the future, you may want to consider consulting with an asset protection attorney. If your business is already worth a lot of money then there are still ways to protect the business but it exposes you to potential fraudulent transfer claims for two years after you formalize your asset protection strategies.

You really should address this now or you may wake up one day in a few years and find that your bank account is empty and your new Harley that you bought cash has been taken by the constable.

Best Regards,
William Devine, II

I am an attorney, just not your attorney (yet). Any answers here are to be deemed informational unless and until you retain me as your attorney for actual legal services and legal advice. I offer free in-person consultations. If you like my answer, please hit the thumbs up button.

Posted

The age of each judgment is unimportant. It is instead a race to attach the individual asset that is important. The first one to your bank account or other unprotected assets will be paid first, and the others will have to come back later.

If you can lay your hands on a lump sum of cash, you might want to see if you can settle these judgments for less than 100%. As you may know, these judgments grow with court administrative fees & interest & creditors always prefer cash as opposed to a few dollars here & there.

Hope this perspective helps!

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