Released: January 19, 2019

Help Desk FAQ

What does it mean to be ‘judgment-proof’?

"Judgment-proof" is a term that refers to a consumer who has defaulted on his or her debt(s) and does not have the level of income or assets that could be seized under the law for repayment of the debt.The term refers to the fact that if a consumer has no income or assets, there is nothing to collect against a judgment won by the creditor in a lawsuit.

Being judgment-proof does not prevent a creditor or debt collector from filing a lawsuit or winning a judgment against you, but there may be nothing available for the creditor to collect toward satisfying the debt.

Learn more on the NOLO DIY legal website.