Did you know that 95% of people who are filed a debt collection lawsuit by original debt
collectors, credit card companies, or junk debt buyers don’t do anything about it?

So, they end up owing the full amount giving the collector the right to collect on that judgment.
So when your creditor gets a judgment against you, they are empowered to come after you,
they can try to get your wages or properties or even have access to your bank account in some
cases.

Although most people employ the “do nothing strategy” that is, they don’t respond to the debt
collection lawsuit filed against them.

But, there’s an appropriate time to employ the “Do nothing strategy” and let the court rule a
judgment against you.

There’s something called judgment proof, so even if the court gives a judgment against you,
your creditors won’t be able to take anything from you and this is usually because of two
reasons; the property you have is exempt or you don’t have a significant property for them to
attach.

Under any Federal or state law out there, social security income is exempt, what that implies is
that your creditors can’t take away your social security income from you even if it’s in a bank
account.

Another case is if you don’t have a significant property, for example, real estate or a vehicle,
and you only have household items.

Meanwhile, it’s important to understand that every state has a set of laws that exempt certain
properties from creditors and usually, there are dollar amounts tied to that.

For example, in Arizona, you are held to a $6000 exemption in a vehicle, so that’s $6000 of
equity in a vehicle you could have, and if you are married, you and your spouse get a $6000
exemption each.

If you have a lawsuit against you and the value of your vehicle is worth less than $6000 then
that vehicle is exempt from the judgment.

This is also true if you have a home, most states have a homestead exemption that protects a
certain amount of equity in your home.

Let’s say the equity of your home is $150,000, if you don’t have more than $150,000 of equity in
your home, then your house is exempt.

In any case, you might want to find out what the exceptions are for your particular state, there
are tons of articles online that provide information about those specific statutes.

The only drawback is that although your assets might be exempt under Federal or state laws,
that doesn’t mean the debt collectors won’t still try to collect the debt.

They may file a bank levy but you have the defense of being able to say those are exempt
funds.

Again “doing nothing” about the case filed still doesn’t rule out the fact that a judgment has been
passed and depending on the state the judgment can stay for 10, 20, or even 30 years after
which it will be renewed and this might often come with some sort of harassment or uncertainty.

If you can deal with using the “do nothing” approach, then that’s fine. If not, you might want to
file a response to the lawsuit and face it head-on.