Obtaining a Judgment

• In most cases a creditor must obtain a valid judgment against you before seizing your personal assets. A creditor obtains a judgment by suing you in civil court, usually in your home county. After the creditor files a lawsuit, you will have an opportunity to respond in writing or at a hearing. If you fail to respond, the court will enter a default judgment against you, which gives the plaintiff secured creditor status.
  
  

Property Liens

• After receiving a judgment, a creditor may place a lien on any personal property you own, subject to your state's exemptions and limitations. Most states provide a certain monetary threshold below which a creditor cannot establish an ownership interest through a lien. For example, Ohio allows judgment debtors to exempt $1,075 in personal property, including property stored in a safe deposit box.
  
  

Seizure and Liquidation

• If you have sufficient equity in nonexempt personal property contained in a safe deposit box, the creditor may petition the court for the right to seize and liquidate the property. The creditor will then sell the property and use the proceeds to pay your judgment debt.
  
  

Locating Personal Property

• For a judgment creditor, locating property contained in a safe deposit box represents one of the most significant difficulties in liquidating these assets. Most states allow creditors to question judgment debtors about their assets, either in writing or by ordering a court hearing. You must fully disclose all of your assets if you receive notice of a hearing or a debtor's examination letter. Failure to respond can result in contempt of court charges and possible imprisonment.