🛡️ Property Exemptions by State: What Creditors Cannot Touch in 2026
When collecting a judgment, not everything the debtor owns is fair game. Every state protects certain property from creditors through exemption laws — shielding essentials like a primary home, basic transportation, household goods, and retirement accounts. This guide explains what’s exempt, what’s not, and how exemptions affect your collection strategy.
⚡ Understanding Property Exemptions
Property exemptions are legal protections that prevent creditors from seizing certain assets to satisfy a judgment. Every state has exemption statutes that define what property is protected and up to what value. The most common exemptions cover the debtor’s primary residence (homestead exemption), one vehicle up to a specified value, household goods and furnishings, clothing and personal items, tools of the trade used to earn a living, retirement accounts (401k, IRA, pension), and a portion of wages. Exemptions vary dramatically between states — Texas and Florida offer virtually unlimited homestead protection, while other states cap homestead exemptions at $5,000 to $30,000. Knowing the exemption laws in the debtor’s state is essential for building a realistic collection strategy.
Judgment Collection by State: Every Enforcement Tool, All 52 Jurisdictions
Knowing what’s exempt is only the starting point. The Judgment Collection by State hub connects every tool you need to enforce once you’ve identified the reachable assets — writs of execution, bank levies, debtor examinations, charging orders, lien duration tables, wage garnishment guides, bankruptcy creditor resources, and skip tracing services. All organized by state and enforcement method, so you can move from exemption analysis directly to the right collection mechanism without losing momentum.
If you hold a judgment against someone, understanding their state’s exemption laws tells you precisely which assets are legally available for collection and which are legally off-limits under that state’s statutory protections. This knowledge prevents wasted effort and expense — attempting to levy clearly exempt property results in a failed collection effort, wasted court filing fees and processing costs, potential sanctions from the court if the levy was obviously improper, and possible liability for damages to the debtor if their exempt property was wrongfully seized or frozen. It also shapes your strategy: if the debtor’s home equity is fully exempt but they have a high income, wage garnishment becomes your primary tool rather than property liens.
This guide covers the major categories of exempt property, explains how exemptions work in practice, highlights the states with the strongest and weakest debtor protections, and explains how creditors can work within the exemption framework to maximize recovery. For a complete guide on all collection tools, see our judgment collection guide. For detailed state-by-state exemption amounts, see our exempt vs. non-exempt assets by state guide.
🏠 Homestead Exemptions
The homestead exemption protects equity in the debtor’s primary residence from seizure by judgment creditors. This is typically the most significant exemption because home equity often represents the debtor’s largest single asset. The exemption amount varies enormously between states — from as little as $5,000 to completely unlimited protection.
| Exemption Level | States | Practical Impact |
|---|---|---|
| 🛡️ Unlimited homestead | Texas, Florida, Iowa, Kansas, Oklahoma, South Dakota (with acreage limits) | Home equity is completely protected regardless of value; judgment liens attach but cannot force sale |
| 💰 High homestead ($200K+) | Massachusetts ($500K), Nevada ($605K), Minnesota ($450K), California ($300-600K) | Most homeowners fully protected; liens attach and collect when debtor sells or refinances |
| 📊 Moderate homestead ($50K-$200K) | Many states including Arizona ($150K), Colorado ($75K), Michigan ($40.5K), Oregon ($40K) | Some equity may be reachable above the exemption; forced sale possible in high-equity situations |
| 📉 Low homestead (under $50K) | New Jersey ($0 — no homestead), Pennsylvania ($0), Kentucky ($5,000), Ohio ($145.4K) | Significant home equity may be available to creditors; forced sale through execution proceedings |
📌 How the homestead exemption works in practice: Even in states with limited homestead exemptions, forcing the sale of a debtor’s home is difficult, time-consuming, and often not cost-effective for moderate judgments. The legal process requires filing a writ of execution, having the property appraised, paying off superior liens (mortgage, property taxes), deducting the exemption amount and sale costs, and receiving only what’s left. For many properties, the mortgage balance plus exemption plus sale costs exceeds the property value, leaving nothing for the judgment creditor. This is why recording a judgment lien is often the better strategy — the lien attaches to the property and gets paid when the debtor eventually sells or refinances, without the expense and uncertainty of forced sale proceedings.
🚗 Vehicle Exemptions
Every state allows debtors to exempt at least one vehicle up to a specified equity value. The exemption protects equity — the difference between the vehicle’s fair market value and any outstanding loan balance. If the debtor owns a vehicle outright worth $15,000 in a state with a $5,000 vehicle exemption, $10,000 in equity is theoretically reachable by creditors through a vehicle levy.
🛡️ Generous Vehicle Exemptions
Some states provide substantial vehicle protection. Alabama allows up to about $10,000 in vehicle equity. California provides approximately $3,325 under one exemption set (higher for certain debtors). New Hampshire protects one vehicle up to $15,000. Vermont allows $2,500 per vehicle. Missouri exempts up to $3,000. States with unlimited wildcard exemptions (discussed below) effectively allow debtors to protect vehicle equity using their wildcard allocation if the specific vehicle exemption is insufficient.
📊 Limited Vehicle Exemptions
Many states cap vehicle exemptions at relatively low amounts — $2,500 to $5,000 in equity is common. In these states, vehicles with significant equity above the exemption are vulnerable to levy. However, the practical reality is that most vehicles depreciate rapidly and many are financed — the combination of loan balance and exemption often eliminates any equity available to creditors. Older, lower-value vehicles are generally fully protected under most states’ exemptions. The debtor may also be able to use wildcard exemptions to cover any vehicle equity above the specific vehicle exemption.
💰 Wage Exemptions and Garnishment Limits
Wages are the most commonly garnished asset in judgment enforcement, but federal and state laws protect a substantial portion of the debtor’s earnings from creditors. Understanding wage garnishment laws by state is critical for creditors planning their collection strategy.
📊 Federal Wage Garnishment Limits
💵 Federal law (Title III of the Consumer Credit Protection Act) limits wage garnishment for ordinary debts to the lesser of 25% of disposable earnings or the amount by which disposable weekly earnings exceed 30 times the federal minimum wage. “Disposable earnings” means gross pay minus legally required deductions (taxes, Social Security, Medicare) but including voluntary deductions like 401k contributions and health insurance premiums.
💵 State laws may be more protective. Many states impose stricter garnishment limits than the federal standard. Some states exempt significantly more than 75% of disposable income. A handful of states (Texas, Pennsylvania, North Carolina, South Carolina) prohibit wage garnishment for most ordinary civil judgments entirely — though they allow garnishment for child support, taxes, and student loans. In states that restrict garnishment, creditors must rely on other collection tools like property liens, asset levies, and debtor examinations.
💵 Head of household protections: Several states provide enhanced wage protection for heads of household — individuals who provide more than 50% of the support for dependents. Florida, for example, provides a complete wage garnishment exemption for heads of household, regardless of income level. These protections significantly limit creditor recovery options in those states.
| Garnishment Category | States | Maximum Garnishment |
|---|---|---|
| 🚫 No wage garnishment | Texas, Pennsylvania, North Carolina, South Carolina | 0% (ordinary civil judgments only) |
| 🛡️ Below federal max | Many states including Florida (head of household), New York (10%), Virginia (variable) | Less than 25% of disposable earnings |
| 📊 Federal standard | States following federal default | 25% of disposable earnings or earnings minus 30x minimum wage |
| ⚠️ Special rules | Various states with income-based formulas, sliding scales, or dollar floor protections | Varies by income level |
🏦 Retirement Account Exemptions
Retirement accounts receive some of the strongest exemption protections in American law, shielding them from virtually all creditor claims including judgment enforcement.
🛡️ ERISA-Qualified Plans (Fully Exempt)
Employer-sponsored retirement plans governed by the Employee Retirement Income Security Act (ERISA) — including 401(k) plans, 403(b) plans, pension plans, profit-sharing plans, and most employer-sponsored retirement plans — are protected from creditors by federal law. This protection is virtually unlimited and applies in all states. ERISA protection survives bankruptcy and cannot be overridden by state law. The only exceptions are qualified domestic relations orders (QDROs) in divorce cases and federal tax levies. For judgment creditors, ERISA-protected accounts are effectively untouchable.
📊 IRAs (Variable Protection)
Individual Retirement Accounts (traditional and Roth IRAs) receive state-level protection that varies by jurisdiction. Many states exempt IRAs fully or up to very high limits. Federal bankruptcy law protects up to approximately $1.5 million in IRA assets (adjusted periodically for inflation). However, state exemption laws outside of bankruptcy vary — some states provide unlimited IRA protection, others cap the exemption at specific dollar amounts, and the protections may differ for traditional vs. Roth IRAs, inherited IRAs, and rollover IRAs. SEP-IRAs and SIMPLE IRAs may receive different treatment than traditional IRAs in some states.
🔧 Tools of the Trade Exemption
Most states protect the tools, equipment, and implements a debtor uses to earn their living. This exemption exists to prevent creditors from destroying the debtor’s ability to work and earn income — which would ultimately harm both the debtor and their other creditors by eliminating their income stream.
The tools of the trade exemption typically covers professional equipment used in the debtor’s occupation (medical instruments for healthcare workers, photography equipment for photographers, carpentry and construction tools for tradespeople), business inventory up to the exempt dollar amount, vehicles used primarily for business purposes (in some states, this is a separate exemption from the personal vehicle exemption and can be claimed in addition to it), farm equipment and livestock for individuals engaged in farming operations, and office equipment including computers, printers, software, and other technology used to conduct the debtor’s business or profession. The dollar limits vary significantly by state — some states cap the exemption at a few thousand dollars, while others protect up to $50,000 or more in trade tools and equipment. For business asset investigations, understanding the tools of the trade exemption helps creditors distinguish between seizable business assets and exempt working equipment.
🏠 Household Goods and Personal Property
Every state exempts basic household goods and personal property from creditor seizure. These exemptions protect the essentials of daily life — the furniture, appliances, clothing, and personal items that every person needs to maintain a basic standard of living.
| Property Category | Typical Exemption | Notes |
|---|---|---|
| 🛋️ Household furniture | $5,000 – $15,000 (varies) | Most states protect “ordinary” or “necessary” household furnishings |
| 👔 Clothing | Fully exempt in most states | Does not include luxury items like fur coats or expensive jewelry |
| 🍳 Appliances | Included in household goods exemption | Necessary kitchen and laundry appliances typically fully protected |
| 📖 Books and family items | Fully exempt in many states | Family photos, heirlooms, Bibles, and personal memorabilia protected |
| 💍 Jewelry | $1,000 – $5,000 (varies) | Wedding rings often specifically exempt; luxury jewelry may be reachable |
| 🐕 Pets | Exempt in most states | Treated as personal property; some states specifically exempt domestic animals |
| ⚕️ Health aids | Fully exempt | Wheelchairs, prosthetics, medical equipment universally protected |
| 🔫 Firearms | $500 – $2,500 (some states) | Several states specifically exempt one or more firearms; others include in personal property |
🃏 Wildcard Exemptions
Some states provide a “wildcard” exemption — a dollar amount that the debtor can apply to any property of their choosing, regardless of category. Wildcard exemptions give debtors flexibility to protect assets that don’t fit neatly into other exemption categories.
📌 How wildcard exemptions work: A debtor in a state with a $5,000 wildcard exemption can apply that $5,000 to protect any asset — a bank account balance, additional vehicle equity beyond the vehicle exemption, a valuable collection, business equipment, or any other property. Some states allow the wildcard to be “stacked” with unused portions of other exemptions. For example, if the debtor doesn’t own a home, some states allow them to apply the unused homestead exemption amount as an additional wildcard. States with generous wildcard exemptions (like Massachusetts and New Jersey) give debtors significant additional flexibility in protecting assets from creditors.
💵 Bank Account Exemptions
Bank account levies are a powerful collection tool, but exemption laws protect certain funds from seizure even when they’re sitting in a bank account. Understanding these protections prevents creditors from pursuing levies that will be contested and reversed, wasting time and money on both sides.
🛡️ Automatically Protected Funds
Federal law requires banks to automatically protect certain funds from garnishment. Social Security benefits, SSI payments, Veterans Administration benefits, federal employee retirement payments, and Railroad Retirement benefits are automatically protected when direct-deposited into bank accounts. Banks must review the account for the prior two months of electronic federal benefit payments and protect those amounts from garnishment without requiring the debtor to take any action. This automatic protection applies nationwide regardless of state law.
📊 State-Level Bank Account Protections
Beyond federal protections, many states provide additional bank account exemptions. Some states exempt a specific dollar amount in any bank account (ranging from $300 to $5,000+ depending on the state). Others protect any account that consists solely of exempt income (wages below the garnishment threshold, government benefits, disability payments). Several states require creditors to prove that the account contains non-exempt funds before a levy can be completed. These protections mean that bank account levies work best against accounts containing clearly non-exempt funds — business income, investment proceeds, or accumulated savings beyond protected amounts.
📊 States with the Strongest Debtor Protections
🛡️ Most Debtor-Friendly States
🏠 Texas: Unlimited homestead exemption (with acreage limits), no wage garnishment for ordinary civil judgments, generous personal property exemptions ($100,000 for families), and strong retirement account protections. Texas is widely considered the most debtor-protective state in the nation. Collecting judgments in Texas requires focusing on non-exempt assets — business accounts, investment real estate, and vehicles above exemption limits.
🏠 Florida: Unlimited homestead exemption, head-of-household wage garnishment protection (effectively eliminating garnishment for most breadwinners), and generous personal property exemptions ($1,000 individual / $2,000 married). Florida also completely exempts the cash value of life insurance policies and annuities from creditors. Collecting in Florida typically requires levying non-exempt bank accounts and non-homestead real property.
🏠 Pennsylvania: No wage garnishment for ordinary civil judgments. While Pennsylvania has limited homestead and personal property exemptions compared to Texas and Florida, the wage garnishment prohibition forces creditors to rely entirely on asset-based collection methods.
🏠 North Carolina and South Carolina: Both states prohibit wage garnishment for ordinary civil judgments. Combined with moderate homestead exemptions and personal property protections, these states present significant collection challenges.
📊 States with the Weakest Debtor Protections
⚖️ New Jersey
New Jersey has no homestead exemption — creditors can reach any amount of home equity. The state follows the federal maximum for wage garnishment (25% of disposable earnings). Personal property exemptions are moderate. New Jersey also allows 100% garnishment of bank accounts with no state-level account exemption beyond federally protected funds. For creditors, New Jersey offers some of the broadest collection options in the country.
⚖️ Nevada
While Nevada has a significant homestead exemption ($605,000), its wage garnishment follows the federal standard, and its personal property exemptions are moderate. Nevada’s advantage for creditors is the relative ease of its enforcement procedures, with straightforward writ of execution processes for both real and personal property levies. The state also allows debtor examinations with broad discovery powers.
⚖️ How Exemptions Affect Collection Strategy
Understanding exemptions doesn’t just tell you what you can’t collect — it shapes your entire enforcement approach. A smart collection strategy starts with identifying what the debtor owns through an asset search, then evaluates each asset against the applicable exemption laws to determine what’s actually collectible.
📋 Strategy in Debtor-Friendly States
In states with strong exemptions (Texas, Florida, Pennsylvania), focus on non-exempt asset categories: business bank accounts (often not protected by personal exemptions), investment real estate (homestead protects only the primary residence), luxury vehicles above the exemption value, non-ERISA retirement accounts that exceed state exemption limits, and debtor examinations to discover hidden or non-obvious assets. Judgment liens on the homestead are still valuable even in unlimited-exemption states because they collect when the debtor eventually sells or refinances.
📋 Strategy in Creditor-Friendly States
In states with limited exemptions, the full range of collection tools is available. Wage garnishment at the federal maximum (25% of disposable earnings) provides steady, automatic collection. Bank account levies can capture non-exempt funds. Personal property levies can reach vehicles and equipment above exemption limits. Real property execution can force the sale of homes with equity above the homestead exemption. The combination of multiple enforcement methods simultaneously maximizes recovery speed and pressure on the debtor to negotiate a settlement.
From Exemption Analysis to the Right Enforcement Tool — by State
Once you’ve mapped what’s exempt and what’s reachable, the next step is selecting the correct enforcement mechanism for each collectible asset. The Judgment Collection by State hub organizes every tool by category — writs of execution, wage garnishment guides, bank levy procedures, charging orders, judgment lien duration tables, supplemental proceedings, and more — cross-referenced by jurisdiction. Whether you’re enforcing in a debtor-friendly state with limited wage garnishment options or a creditor-friendly state where the full toolkit is available, the hub points you to the right playbook for your specific situation.
Browse Enforcement Tools by State →⚠️ Exemptions must be claimed by the debtor. In most states, exemptions are not automatic — the debtor must actively claim them by filing a claim of exemption with the court after receiving notice of a levy or garnishment. If the debtor fails to file a timely claim of exemption, they may lose the right to assert the exemption for that particular enforcement action. However, creditors should not deliberately attempt to seize clearly exempt property hoping the debtor won’t respond — courts take a dim view of this practice and may award sanctions, attorney fees, and damages to debtors whose exempt property is improperly seized.
🚫 Exemptions That Don’t Apply
Certain types of debts cut through exemption protections that would otherwise shield the debtor’s assets. Understanding these exceptions is important for both creditors and debtors.
| Debt Type | Exemptions That Don’t Apply | Why |
|---|---|---|
| 👶 Child support | Wage garnishment up to 50-65%, most property exemptions reduced | Public policy prioritizes child welfare over debtor protection |
| 🏛️ Federal tax debts | IRS can levy retirement accounts, wages (with reduced exemption), and most property | Federal tax collection powers supersede state exemption laws |
| 🎓 Student loans (federal) | Wage garnishment up to 15% administratively, most exemptions inapplicable | Federal student loan collection has special enforcement powers |
| 🏠 Purchase-money mortgages | Homestead exemption doesn’t apply to the mortgage lender | The lender financed the purchase of the exempt property |
| 🔨 Mechanic’s liens | Homestead may not protect against liens for work done on the home | The contractor improved the exempt property directly |
| 💰 Alimony/spousal support | Similar treatment to child support in many states | Family support obligations receive priority treatment |
🔍 Know What You Can Collect Before You Spend Money Collecting
Before pursuing judgment enforcement, a professional asset search identifies what the debtor owns and a skip trace confirms where they live and work. Combined with exemption analysis, you’ll know exactly what’s collectible and the most efficient path to recovery. People Locator delivers asset searches, skip traces, and employer locates in 24 hours or less — nationwide since 2004.
Order Asset Search Discuss Collection Strategy📋 Other Common Exemption Categories
Beyond the major categories covered above, states provide exemptions for several additional types of property that creditors should be aware of when planning their collection approach.
📄 Insurance Proceeds
Most states exempt life insurance proceeds (both the death benefit paid to beneficiaries and the cash surrender value of whole life policies) from the insured’s creditors. Some states extend protection to annuity payments, disability insurance proceeds, and health insurance benefits. Florida and Texas provide particularly broad insurance exemptions — in Florida, the cash value of life insurance policies is completely exempt from creditors regardless of amount. These exemptions can protect significant wealth from creditor reach, as some debtors accumulate substantial cash value in whole life policies that creditors cannot access through any enforcement mechanism.
📬 Public Benefits
Social Security benefits, SSI payments, Veterans Administration benefits, unemployment compensation, workers’ compensation payments, and public assistance benefits are exempt from creditor garnishment under federal law. These protections apply regardless of state law and cannot be waived by the debtor. When these funds are direct-deposited into bank accounts, they retain their exempt status for at least two months of deposits. States may provide additional protections for state-level benefits, disability payments, and other government assistance programs beyond the federal baseline.
🌾 Agricultural Exemptions
Many states — particularly agricultural states — provide special exemptions for farming property: livestock, farm equipment, crops (both growing and harvested), feed, seed, and farm vehicles. These exemptions recognize that seizing a farmer’s means of production destroys their ability to generate income, harming both the farmer and the broader agricultural economy. Agricultural exemptions can be quite generous in farming states, protecting tens of thousands of dollars in farm-related assets from creditor seizure.
⚰️ Burial and Cemetery
Virtually all states exempt burial plots, cemetery lots, and pre-paid funeral arrangements from creditor claims. Some states also exempt church pew rights and religious items. These exemptions reflect deeply held cultural values about dignity in death and religious freedom, and they are rarely contested by creditors. The practical impact on collection is minimal since burial plots and funeral arrangements typically have low resale value, but creditors should be aware that these assets are categorically off-limits.
🔍 Discovering Non-Exempt Assets
The most effective judgment collection strategy starts with a thorough understanding of what the debtor owns and which assets are exempt. Without this information, you’re guessing — and guessing wastes money on enforcement actions that fail because the targeted assets turn out to be protected.
📊 The Asset Discovery Process
🔍 Step 1 — Skip trace: Confirm the debtor’s current address and state of residence. This determines which state’s exemption laws apply and establishes the jurisdiction for enforcement. Delivered in 24 hours or less.
🔍 Step 2 — Employer locate: Identify the debtor’s current employer and income level. This determines whether wage garnishment is viable and how much can be garnished under the applicable state’s limits. If the debtor lives in a no-garnishment state, you’ll need to focus on asset-based collection instead.
🔍 Step 3 — Asset search: Comprehensive search covering real property (home equity above homestead exemption), vehicles (value above vehicle exemption), business interests (often non-exempt), UCC filings (business equipment and inventory), and judgment/lien records (competing creditors). Delivered in 24 hours or less.
🔍 Step 4 — Exemption analysis: Compare each discovered asset against the debtor’s state exemption laws. Identify which assets have collectible equity above exemption limits. Prioritize enforcement actions targeting the most accessible non-exempt assets with the highest recovery potential.
🔍 Step 5 — Debtor examination: For high-value judgments or when the debtor’s assets aren’t obvious, a court-ordered debtor examination compels the debtor to appear under oath and disclose all assets, income sources, bank accounts, and property. This is the most powerful asset discovery tool available because the debtor must answer truthfully under penalty of perjury.
❓ Frequently Asked Questions
📌 Can a creditor take my house to pay a judgment?
It depends on your state’s homestead exemption and the amount of equity in your home above that exemption. In unlimited-exemption states like Texas and Florida, creditors generally cannot force the sale of your primary residence to satisfy a judgment regardless of how much equity you have — even if you own a million-dollar home outright with no mortgage. In states with limited homestead exemptions, creditors can potentially force a sale through execution proceedings if your equity exceeds the exemption amount — but the process is expensive, time-consuming, and often yields surprisingly little after paying off the existing mortgage, deducting the full homestead exemption amount, covering sale costs (typically 6-10% of the sale price for commissions and closing costs), and distributing proceeds to any superior lienholders. More commonly and practically, creditors record a judgment lien against the property, which must be satisfied when you voluntarily sell or refinance rather than through costly forced sale proceedings. The lien ensures the creditor gets paid eventually without the expense and uncertainty of forcing a sale.
📌 Can creditors garnish my wages in every state?
No. Texas, Pennsylvania, North Carolina, and South Carolina prohibit wage garnishment for ordinary civil judgments entirely — creditors in these states must rely exclusively on asset-based collection methods like bank levies, property liens, and personal property levies. Other states allow garnishment but impose limits that may be stricter than the federal standard of 25% of disposable earnings. Some states set lower percentage caps (New York limits garnishment to 10% of gross wages or 25% of disposable earnings, whichever is less), provide head-of-household protections that significantly reduce or completely eliminate garnishment for breadwinners who support dependents (Florida exempts 100% of wages for qualifying heads of household), or establish higher income floors below which no garnishment is permitted regardless of the percentage calculation. The practical impact varies enormously — in some states, wage garnishment is the primary and most effective collection tool, while in others it’s completely unavailable, requiring creditors to develop alternative enforcement strategies. See our comprehensive wage garnishment laws by state guide for specific limits, exemptions, and procedures in all 50 states.
📌 Are retirement accounts protected from creditors?
ERISA-qualified employer-sponsored retirement plans — including 401(k) plans, 403(b) plans, traditional pension plans, profit-sharing plans, and most employer-sponsored defined benefit and defined contribution plans — are protected from creditors by federal law under the Employee Retirement Income Security Act. This protection is virtually unlimited in amount and applies uniformly in all 50 states regardless of state exemption law variations. ERISA protection survives bankruptcy proceedings and cannot be overridden, reduced, or waived by state legislation. The only exceptions allowing creditors to access ERISA-protected funds are qualified domestic relations orders (QDROs) issued in divorce proceedings and federal tax levies from the IRS. Individual Retirement Accounts (traditional and Roth IRAs) receive state-level protection that varies by jurisdiction — many states exempt IRAs fully or up to very high limits, while others cap the exemption at specific dollar amounts. Federal bankruptcy law protects up to approximately $1.5 million in IRA assets (adjusted periodically for inflation). For judgment creditors, ERISA retirement funds are effectively untouchable through any enforcement mechanism available to private creditors.
📌 What happens if a debtor moves to a state with better exemptions?
If the debtor moves to a state with more generous exemptions, the new state’s exemption laws typically apply to their property located in that state going forward. This can significantly affect your collection strategy — a debtor who moves from New Jersey (no homestead exemption, making all home equity available to creditors) to Florida (unlimited homestead exemption, protecting all primary residence equity regardless of value) gains full homestead protection for their new primary residence in Florida. However, the judgment must be domesticated in the new state before enforcement can proceed under that state’s procedures, and the new state’s collection rules and enforcement procedures apply. Strategic relocation to debtor-friendly states is a known and documented debtor tactic that savvy debtors use to shield assets from creditors. This is precisely why promptly recording judgment liens on any real property the debtor currently owns and beginning active collection before the debtor has the opportunity to relocate is critically important. Once a lien is recorded, it encumbers the property regardless of subsequent events. Additionally, a skip trace monitoring the debtor’s address over time can alert you if they relocate, allowing you to adjust your collection strategy accordingly.
📌 Can I protect my assets by transferring them to someone else?
Transferring assets to avoid creditors can constitute a fraudulent transfer (also called a fraudulent conveyance or voidable transaction), which allows creditors to undo the transfer through court proceedings and reach the transferred assets as if the transfer never occurred. Every state has fraudulent transfer laws — most have adopted the Uniform Voidable Transactions Act (UVTA) or its predecessor, the Uniform Fraudulent Transfer Act (UFTA). These laws provide two grounds for voiding a transfer: actual fraud (the transfer was made with the specific intent to hinder, delay, or defraud creditors) and constructive fraud (the transfer was made for less than reasonably equivalent value while the debtor was insolvent or became insolvent as a result of the transfer). Courts examine several factors to determine fraudulent intent, often called “badges of fraud”: transfers to family members or insiders, transfers made after a lawsuit was filed or threatened, transfers of substantially all assets, debtor retaining possession or control of the transferred assets, concealment of the transfer, and inadequate consideration received. Creditors who discover suspicious transfers through asset searches, property record analysis, and debtor examinations can petition the court to reverse the transfer and make the assets available for collection. The lookback period for challenging fraudulent transfers is typically four years from the transfer or one year from discovery, depending on the state and the theory alleged.
📌 How do I find out what a debtor owns before trying to collect?
The most effective and efficient approach is ordering a professional asset search that covers real property ownership in all states where the debtor has lived or may own property, vehicle registrations showing cars, trucks, boats, and recreational vehicles in the debtor’s name, business entity filings revealing ownership interests in LLCs, corporations, and partnerships, UCC filings showing business equipment and inventory pledged as loan collateral, and judgment and lien records revealing competing creditors and existing encumbrances on the debtor’s assets. Combined with a skip trace to confirm the debtor’s current address and state of residence, and a employer locate to identify their current workplace for garnishment purposes, you’ll have a comprehensive picture of what assets exist, which state’s exemption laws apply, which assets are exempt and which are collectible, and which specific collection tools will be most effective for maximum recovery. Professional asset searches from People Locator are delivered in 24 hours or less and provide the foundation for a targeted, efficient collection strategy that avoids wasting money on enforcement actions that won’t succeed.
📚 Related Resources
🗺️ Judgment Collection by State — Complete enforcement hub: all 52 jurisdictions, 30+ tools, lien duration tables, bankruptcy resources, and skip tracing library. Start here once you’ve identified your collectible assets.
🛡️ Exempt vs. Non-Exempt Assets by State — Detailed state-by-state exemption amounts
⚖️ How to Collect a Judgment — Complete enforcement guide
💸 Wage Garnishment Laws by State — State-specific garnishment limits for all 52 jurisdictions
🏠 Marital Property Laws by State — TBE protections, community property rules, homestead enforcement across all 52 jurisdictions
🏠 How to Place a Judgment Lien — Property lien procedures
🔨 How to Levy a Debtor’s Assets — Asset seizure guide
📋 Debtor Examination Guide — Discovering debtor assets under oath
📊 Collection Strategy Playbook — Complete enforcement playbook
💎 Asset Search Services — Professional asset investigation
📊 What Does an Asset Search Show? — Understanding asset reports
🏠 Real Property Search — Finding owned real estate
🚗 Vehicle Asset Search — Vehicle ownership records
🏢 Business Asset Search — Business ownership and assets
🔍 Skip Tracing Services — Locate debtors nationwide
💼 Find Someone’s Employer — Employer locate for garnishment
⏰ How Long Is a Judgment Good For? — Judgment duration by state
