What Does It Mean to Be Judgment-Proof?
Judgment-proof refers to a person or entity that has no assets or income that can be seized or attached by a court order in the event of a legal judgment against them. In other words, they have no assets that can be used to satisfy a debt or legal obligation.
For example, if someone owes money to a creditor and the creditor obtains a court judgment against them, the creditor may be able to seize the debtor's assets, such as a house or bank account, to pay off the debt. However, if the debtor has no assets or income, there is nothing for the creditor to seize, making them judgment-proof.
It is important to note that being judgment-proof does not mean that the person or entity is immune from legal action. The creditor may still be able to pursue other legal remedies, such as wage garnishment or bank levies, to try to collect the debt. Additionally, if the debtor has any future assets or income, these may be subject to seizure in the event of a legal judgment.
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