Who Is Considered Judgement Proof?

Judgment proof is a 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 is broke and unemployed can be considered judgment proof, as can a debtor who only has certain legally protected types of assets or income.

How do I know if I am Judgement proof?

A person is only judgment proof if there are absolutely no avenues available for a creditor to collect a debt. For example, California exemption laws [1] allow for single debtors to protect up to $75,000 of equity in a home. If your only asset is a home with only $25,000 of equity, you are judgment proof.

What does Judgement proof mean in Canada?

Judgement proof refers to a protection for financially insolvent debtors against creditors from taking their protected property. In simple words, if you are judgement proof, your assets are exempt, so any debtor that is unable to pay money owed is protected from creditors taking their possessions.