Legal Question in Credit and Debt Law in Georgia

She may want to consider bankruptcy to protect the home, as a judgment becomes a lien on the home.

I agree with Attorney Ashman. A judgment automatically becomes a lien on real property. Judgments last for enforcement purposes for 7 years and they can be revived.

I disagree though that bankruptcy is the only option. Social Security income is exempt. Georgia law does allow for some exemptions outside of bankruptcy and anything in your home, like home furnishings, is probably marital anyway. Creditors want money, not pots and pans and furniture. Unless you have valuable antiques or collectibles or paintings, it is very unlikely that a sheriff is going to come into your home.

If you both receive Social Security, its exempt. Banks will protect up to 60 days' worth of this kind of income. Joint accounts are ok provided that ONLY Social Security or exempt income (like unemployment compensation, worker's compensation or some types of pensions) goes into the account. Do not commingle non-exempt funds with Social Security funds. If either you or your wife have income from another source, then I would keep the joint account for Social Security and get a separate account for the other income. If all of the debts are in your wife's name solely, then she needs to maybe consider not having a bank account at all or banking online or doing something else.

I have some articles at my website which discuss alternatives to bankruptcy. Depending on what the debts are and how much you owe, it might be possible to look at the debts strategically with an eye towards settling some or all of them or maybe none, depending on the creditor. It is also unlikely that your wife would be sued on every single account. Its not impossible - I have a few clients who have been. But I also have had clients who were never sued at all.

Please have your wife email me at [email protected] if you want me to evaluate her circumstances in confidence.