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Notify creditors that I am 'Judgment proof'

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Can I tell my creditors that I am "Judgment Proof"?

Hi Melanie

When you are explaining to your creditors that you are ‘Judgment Proof’, it signifies that you are using the most powerful weapon against them. As the word suggests, that you don’t have type of income or asset that can be used to pay the debt to the creditors.

Any property that you might be having with you will be getting "exempted" and you won’t be forced to liquidate it. Even if a sheriff is assigned to take away your property as per the court judgment, he can’t take the property that has been "exempted"

There are no legal procedures for becoming a ‘judgment proof’ consumer. This name itself describes your financial condition and there is nothing that the creditor can take away from you.

Sub: #1 posted on Thu, 11/24/2005 - 05:13

ben ben

(Posts: 2034 | Credits: 426.37)

How can I become judgment proof. I am on Social Security and my benefits have just been reduced by $300 this month and go up to what will be $100 less a month than I was previously getting. I have no other property of value that can be taken away from me. I have no collaterol whatsoever. Please help me with this.

Sub: #2 posted on Tue, 08/04/2009 - 11:14


There is no such thing as judgment proof. You may not have anything today but what about 5 or ten years from now?? That is what they are looking at,.

Sub: #3 posted on Tue, 08/04/2009 - 16:47

Moderators Cum Industry Expert
(Posts: 17209 | Credits: 4746.13)

Generally, social secutiry benefits are exempt from garnishment. So, if that is all you have you will probably not have to worry about that being effected. I hope things get better for you.
Certified Financial Solutions

Sub: #4 posted on Wed, 08/05/2009 - 21:55

Stewart Stewart

(Posts: 102 | Credits: 13.78)

A caution on income protected form garnishment & levy.

If you end up with a judgment agianst you for unpaid debt, do not assume that your bank account wont be levied. It could, and has happened. It is a bit of a hassle to undo.

If all you have deposited in your account is SSI?SSDI, you will have an easier go of undoing a wronfully enforced levy. If you have other funds deposited in that same account, you will have the burden of proving source of funds etc...

Mileage may vary

Sub: #5 posted on Thu, 08/06/2009 - 02:25


hi, about 10 years ago i went to college in the US and had student loans, upon graduateion I moved away from the states and well.... left the student loans un paid. I am sure they have exploded by now with intrest late fees etc etc... obviously since I dont live in the USA anymore they have little ways of collecting it BUT I do want to make payment on it... is there a way to negotiate after all this time that would allow me to pay the principle in full only? thanks for your help

Sub: #6 posted on Fri, 08/07/2009 - 16:37


Student loans are a hard one to negotiate on. You can try to contact them, but they will probably not be too willing to work with you on it. They probably figure that you will return to the US, and they will try to collect then.

Sub: #7 posted on Sat, 08/08/2009 - 01:47

southernapostolic southernapostolic

(Posts: 302 | Credits: 25)

A judgment has to be renewed about every two years. If the creditor fails to do this, then its over!
A good rule to operate under is to make everything in either a trust or corporation, make it so noone, not even the IRS can take anything of yours, ever!! Even if you currently have no financial problems, given the wrecked economy" we are in, that could happen at any time, always be prepared for it.

Sub: #8 posted on Mon, 12/20/2010 - 22:42


Um.....yeah. Couple of things. 1- Your statement about Judgments having to be renewed every two years may...MAY be true in your area but not everywhere. All this stuff varies by state. Some they can renew right before judgment is set to expire, some cant renew at all and a judgment has one duration, period and there are situations everywhere in between those extremes. Please don't dole out blanket advice when you dont know the situation.

As to your IRS scenario I'd take that with a HUGE grain of salt. The IRS plays by a completely different set of rules than normal collectors. And these rules are few and far between. Even state rules against garnishment, levy and property seizures are not applicable when its tax debt. In other words the IRS could care less what your piddly little state law says you are allowed to keep. They take whatever their own rules say they can take.

And as to your idea about putting things in a business name to protect them,again I'll gulp some salt down with that as well. Nice idea possibly with less determined, powerful players like banks and local creditors but I wouldnt try that with Uncle Sam.

Sub: #9 posted on Tue, 12/21/2010 - 22:50


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