I have a modest checking account balance and funds in CDs as well as large outstanding debts such as medical bills. Is there any way that the people to whom I owe money can come in and take all of my funds, or am I protected in some way?
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If one of your creditors obtains a court judgment against you and you fail to pay the judgment amount, the creditor can, in most states, attach or garnish funds in your accounts, which effectively ties those funds up until the court can determine whether to turn the funds over to the creditor. If you get notice that you're being sued on a debt, it's not a good idea to ignore the notice, because the claim could be allowed without your side of the story being heard (assuming you disagree with the claim).
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If one of your creditors obtains a court judgment against you and you fail to pay the judgment amount, the creditor can, in most states, attach or garnish funds in your accounts, which effectively ties those funds up until the court can determine whether to turn the funds over to the creditor. If you get notice that you're being sued on a debt, it's not a good idea to ignore the notice, because the claim could be allowed without your side of the story being heard (assuming you disagree with the claim).
