Judgment proof is the description of a person who does not have enough assets for a creditor to seize when a court order requires debt repayment.
A debtor who only has certain legally protected assets or income is also judgment proof.
State laws determine the assets and amount of wages that cannot be collected despite a judgment. Being judgment proof or “collection proof,” is not permanent. Judgments can be valid for many years, and creditors can continue to try to collect what the judgment allows for long after they win a lawsuit
against a delinquent borrower.
In the context of contract law, debt collection and civil litigation, the term judgment proof is commonly used to refer to defendants or potential defendants who are financially insolvent, or whose income and assets cannot be obtained in satisfaction of a judgment.