Credit Cards

Judgment proof

A debtor whose assets, if any, cannot be taken by a court judgment is said to be judgment proof. In consumer bankruptcy cases, it is often the case that the consumer has no assets to take, so even if a credit card company or debt collector successfully sues and obtains a judgment for repayment, the judgment would in effect be moot. Depending on state laws, a debtor can have substantial assets and still be judgment proof. For example, several states prevent a person’s primary residence from being seized for debt repayment — up to a certain value. Also known as collection proof.