What is Judgment Proof?

Judgement proof is a term used for a person who is unable to meet the requirements to pay a creditor by a court order or whose assets and income are insufficient to meet a debt obligation if they are seized. A debtor that is bankrupt, insolvent, unemployed or seriously impoverished is a judgement proof. Also, a debtor whose assets or properties are protected by the laws of a state is judgement proof, this is because there are certain properties or income that cannot be seized despite a court order. An individual that is judgement proof is also collection, this however does not mean that the creditor cannot obtain repayment forever.

When is Someone Judgment Proof?

Judgment proof can be better understood with the illustration below; due to overwhelming expenses while on sick leave, Mr Bright accumulates debt using his credit card, after he recovers, he is unable to repay the debt. A court judgement is obtained against him demanding that all debt be repaid. However, Mr Bright is no longer employed and is therefore judgement proof because there is no means to pay back. He has no savings, he has no assets to repay the loan. If by the following year, Mr Bright gets a well paying job, the financial agency can begin to collect the money owed by garnishing a part of his salary. Peradventure the judgement expires before he secured the job, the judgement can be renewed.

Related Topics

• Civil Litigation Procedure (Intro)
• What is a civil lawsuit or civil action?
• Who are the parties to a lawsuit?
• What is standing to sue?
• Venue
• What is personal jurisdiction?
• What is a class action?
• What are the pleadings?
• What is discovery?
• What is the scope of discovery?
• What are motions and how are they used?
• What are frivolous cases?
• Barratry
• What is the process of selecting a jury?
• What are the steps involved in a civil trial?
• What is the burden of proof in a civil trial?
• How is a civil trial decided?
• Adjudication
• Default Judgment
• Stipulated Judgment
• Equitable Defenses
• Equitable Relief
• Doctrine of Clean Hands
• Compensatory Damages
• Punitive Damages
• Replevin
• What is joint and several liability?
• Judgment Proof
• What is the process for appeal?
• Amicus Curiae Brief
• How do parties enforce a civil judgment?
• Levy
• Garnishment
• Writ of Attachment
• Writ of Execution
• Writ of Seizure and Sale
• Sheriff's Sale
• What is res judicata