If a collection lawsuit proceeds without a timely answer, the court enters a Default Judgment, granting the creditor legal authorization to execute bank levies and property liens.
1. Bank Account Levy Protections
| Protected Income Source | Governing Federal Statute | Statutory Protection Level |
|---|---|---|
| Social Security Benefits | 42 U.S.C. § 407 | Automatically protected (2 months direct deposit protected) |
| VA Disability & Pensions | 38 U.S.C. § 5301 | 100% Exempt from commercial creditor levies |
| ERISA Retirement Accounts (401k/Pensions) | 29 U.S.C. § 1056(d)(1) | 100% Protected from commercial civil judgments |