Am I Judgment Proof?


When a creditor attempts to collect on a debt and is granted a judgment against you, they may be restricted if you are judgement proof. Judgement proof simply means that a creditor can’t collect on its judgment even when they have successfully sued you for the money. Usually, creditors have a variety of legal methods of collecting what is owed to them, but you’ll be considered judgement proof when you don’t have any income or property that a creditor can legally take. When granted a judgment, creditors can place a levy on your bank account, put a lien against your property and even garnish your wages.

When the individual doesn’t own any assets or income that can be seized, however, the creditor can’t legally take money from them. Judgement proof individuals generally lack a bank account or property that can be taken. The individual may have a very low-paying job or only receive income that is exempt from being taken. Income you receive from unemployment, social security, public assistance, child support, veteran’s benefits or federal employee retirement benefits is exempt from being seized by creditors. There are also laws designed to protect the amount a creditor can garnish from your wages. Federal law provides that only 25 percent of your disposable earnings or the amount that exceeds 30 times the minimum wage can be taken from you, so it’s possible you’ll be judgment proof when you earn a low wage.

In most cases, judgment proof is only a temporary condition. You won’t be able to ignore your debts or be completely relinquished in the event you gain property or income in the future. Experienced bankruptcy attorney Joel R. Spivack can help you understand what being judgment proof means for you. To contact the law office of Joel R. Spivack, call 856-488-1200 or fill out our convenient online contact form to get started today.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney/client relationship. If you are seeking legal advice, please contact our law firm directly.

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Attorney Joel R. Spivack is an experienced bankruptcy and residential real estate transactions lawyer in Cherry Hill, New Jersey. Clients come to us for legal services, but what we really provide is peace of mind. For more than 30 years, Attorney Spivack has helped people make wise, informed decisions about bankruptcy filings, debt relief options and residential real estate transactions.
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