Most pensions, like other forms of retirement income, are exempt from garnishment or attachment to repay court judgments. In many cases involving retirees, the only major drawback to doing so would be the negative impact this unpaid debt would have on your credit rating. If the lender sues and obtains a judgment against you, it could attempt to force the sale of various items of personal property to pay the outstanding debt, though this procedure is very seldom used except in those cases in which the debtor owns high-value luxury items.
To learn more about garnishments, see Wage Garnishment. To learn more about your state’s laws regarding the enforcement of judgments, I encourage you to visit the Bills.com State Consumer Protection Laws and Exemptions page.
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