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A bankrupt person who is a defendant in a court is known as judgment proof. It is rather difficult for a creditor to secure a claim and collect the judgment if the defendant is judgment proof. The creditor may file a garnishment process against the person, unless the person is collecting; social security, government funds, or any government welfare. This article provides answers to some of the most commonly asked questions about issues related to such situations. Can a person living in California be judgment proof if he / she does not have any assets? In California if a person fails to pay the debts and does not have the means for the repayment and no assets, then the person would be considered judgment proof. The creditor however can still obtain a judgment against the person, since being in this status does not act as a shield against this. Can a person, against whom a credit card company has gained a judgment, be considered judgment proof? A creditor can in specific cases gain a judgment against a debtor who is considered judgment proof. Usually this status is valid for 10 years and the creditor can wait after that period to collect on the debt.. If a creditor wants to file a suit against a person who has lost his / her job, car, and all assets, would the person be considered judgment proof? If the person is unemployed and possesses no asset then he / she may be considered judgment proof. Though the debtor can still gain a judgment against the person and may find it quite difficult collecting the debt. Can a person living on social security and retirement and owning a home on less than an acre of land be considered judgment proof? Can creditors chase them if they default on payment? A person with only social security and retirement would be considered judgment proof. The creditor can neither garnish the person’s income nor can they seize the person’s house. The creditor will not be in a position to pursue the person if he / she stops paying the debt. If someone lives in an assisted living facility is it required of them to send out letters informing that he / she is judgment proof or what they need to do? Any person living in an assisted living facility is judgment proof since he / she is without any assets to pay off the debts to the creditors. It is not necessary to do anything to prove this status. If the person wants to file for bankruptcy then he / she will need to file a motion in court to be granted this status. How can an individual file for a judgment proof status? This status would indicate that a creditor cannot collect the person’s debts. To obtain such a status the person does not have to file anything as such. The person would simply have to notify all accounts that he / she may have, that they are exempt from any garnishment or liens. A person below a certain amount of income and without any assets is considered judgment proof. Being considered judgment proof and the associated benefits and liabilities might be rather complicated for a lay person to understand and give rise to various questions. In such circumstances it is better to ask a bankruptcy lawyer to decide the best course of action.
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