The Judgment is a piece of paper from the court that says you owe the creditor money. With that piece of paper, they can:
When is “doing nothing” an option? Remember, the Judgment allows the creditor to garnish wages, your bank account and/or put a lien on your land. Some sources of income cannot be garnished, for example pension, Social Security Supplemental Income, or Social Security Disability. If this is your only source of income, then you cannot be garnished. Also, if that is the only money that goes into your bank account then likewise, your bank account cannot be garnished. If you do not own any land, then there is nothing to put a lien on. In that scenario, you are what we call “Judgment-proof.” The piece of paper the creditor gets from the court is only good for putting in a frame and hanging on creditor’s wall.
If your circumstances change, you get a job or inherit a home, then you may no longer be Judgment-proof. If you think that is a possibility then you will want to explore your bankruptcy options now, don’t wait until you receive an inheritance.