Vol. 9, No. 4, Pg. 26. Point/Counterpoint; Point. . .Fat, Happy and Judgment Proof in South Carolina.

• Author: By F. Truett Nettles II

South Carolina Lawyer

1998.

Vol. 9, No. 4, Pg. 26.

Point/Counterpoint; Point. . .Fat, Happy and Judgment Proof in South Carolina

26Point/Counterpoint; Point. . .Fat, Happy and Judgment Proof in South CarolinaBy F. Truett Nettles IINew Hampshire, North Carolina, Pennsylvania, Texas, Vermont and South Carolina have no wage garnishment statutes.

Harold is single, 26 years old and works as a sales representative. During his senior year in college, he obtained several credit cards, one with a credit limit up to $10,000.

He has done well in his job. He takes home over $3,500 a month. He lives in an "Adult Community" apartment development. The rent is $750 per month. He recently purchased a high-performance car. The payments are $625 per month. He got 100 percent financing, but the interest rate is high because his credit record is not as good as it used to be. While some of his credit cards have been canceled, he still likes to go to stock car races in Charlotte, Darlington and Daytona. He likes to charge it. He also likes salt water fishing. He has a 26-foot, deep hull, open boat with dual Johnson 120s. Payments on the boat are $560 a month. It costs $125 a month to keep it at the marina.

After two great vacations and several fishing trips, Harold has reached the credit limit on his "big" credit card. He has skipped a couple of monthly payments. The credit card company has been unable to work out a payment plan with Harold. They filed a lawsuit in the Court of Common Pleas for $8,785, plus interest and 15 percent attorney's fees. Harold did not respond. He owed the money, and he saw no point in hiring a lawyer.

After obtaining a default judgment, the credit card plaintiff sent an execution order to the sheriff. That execution was returned "null bona." Sheriff deputies in South Carolina do not go into peoples homes to see if their household goods have a value in excess of the Homestead Exemption. Harold owns no real estate or other significant assets above and beyond the South Carolina Homestead Exemption. He is "judgment proof."

Harold's biggest asset is his job and the cash flow it creates. He doesn't have a stock portfolio. He doesn't have a savings account. The credit card plaintiff might conduct Supplementary Proceedings (post-judgment judicial proceedings to discover assets), but the outcome would not be good. Harold has a...