How to Not Lose Property in a Judgment
- 1). Obtain, complete and file a Claim of Exemption (Wage Garnishment)--Form WG-006. You can obtain this form from either the small claims court or the office of the sheriff or marshal that served you. You must file the form within 10 days of receiving notice that a judgment creditor is taking enforcement action against your property.
- 2). Set up a trust, either through a self-help website, such as legalzoom.com, or through your attorney.
- 3). Transfer your property, such as bank accounts, any real property (house, land and any other buildings you own) and automobiles (as well as motorcycles, boats, airplanes) into the trust.
- 4). If you have a business, you are probably operating under a fictitious name--Sam's Tires, for example--and all of your personal property is at risk if your business gets sued. To avoid this, you should set up a corporation for your business. This removes your personal property from any judgment resulting from your business dealings. Legalzoom.com has a very low-cost way of doing this.
- 5). Set up accounts for your children. You can transfer some of your finances into these accounts and protect them from judgment.
Source...