What Does Judgment Proof Mean?
Full Question:
What would qualify a person as judgment proof?
09/06/2010 |
Category: Judgments |
State: California |
#23107
Answer:
Judgement proof refers to a debtor who has little or no assets for a creditor to seek payment of a judgement from. In some cases, a person threatened with or subject to potential litigation may make themself judgment proof by diverting his/her assets into holdings that can't be reached by local courts, such as investing their money offshore through offshore trusts. However, unpaid judgments will affect one's credit rating and ability to get loans in the future. Credit ratings affect other matters, such as insurance rates, as well. Generally, judgment proof means having no assets, wages, or other income that can be attached to pay a court judgment.