Can a creditor take Adoption Subsidy money

I am not 100% certain but I think that type of money would be protected.

What is the nature of the suit? Have you answered the summons? How old is the debt in question and what state are you in?

Thanks for answering!

It's a Small Claims suit from a local dentist and I haven't answered the summons yet and don't know if I should since the Adoption Subsidy is the only income I receive. The debt is 18 months old and I live in Vermont.

Ok I found this:

If at the hearing a debtor can show his income is used for reasonable and necessary living expenses for himself and that of his legal dependents, his income may be exempt.
If an order to garnish is obtained, it continues until the judgment is paid in full or his employment is terminated.



Ok so based upon that, you can show that your money is not in fact your money, but money provided to care for the disabled child. It should be protected.


They may try to levy your bank account so if you have an account in your name you might want to remove it, or make sure you provide a statement that the only money that goes into the account from you is this protected subsidy.


You are not in a community property state so they can't go after your husband.


Ok you should always answer and attend court. The judgment will haunt you for a LONG time. The amount seems low enough, have you tried working out a payment arrangement with the Dr. at all?


Once he gets judgment, the account will accrue interest at the state approved rate so it will just keep getting bigger.

I've tried to make arrangements with them if they dropped the past finance charges, which are almost half of what is owed. But they refused.

Hmm. Do you still have any of the paperwork from the visit? If there are no provisions for these finance charges in the paperwork that you signed, then they can't legally ask for them and that may provide you with a defense.

I looked up legal finance and interest charges in Vermont and all I could find was that only those who made loans or extensions of credit can charge, and that it is based on a 'contract'. I am not sure if a dentist would qualify as a 'lender' or a 'granter of credit'. It looks like it is simply an unpaid debt.

How much time left do you have to respond to the summons?

Ok you may want to answer and appear! I was looking at Vermont rules of civil procedure and if the dentist wins a judgment and you fail to pay it or the stipulated payments, the dentist can file a motion for a financial disclosure hearing and if you fail to appear or pay after so ordered, he can then file a motion for civil contempt. Now all these filings have like a $50 filing fee, but this dentist sounds like he would do it and it is his option, just so you know.

I was going to use the "I never signed a contract" defense....I wonder if that would work?

What did you sign? Usually you sign a promise to pay or something along those lines. You would need to look on that to see if it mentions finance charges or interest rate.

If you didn't sign anything then yes, that is a good defense. You can get the added fees knocked off and set up a payment plan through the court, just keep in mind that the court will tack on interest.