# Judgment proof

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{{Short description|Term for insolvent defendants in contract law}}
{{For|the statutory inability to be subjected to lawsuits or criminal penalties|Legal immunity}}

In the context of [contract law](/source/contract_law), [debt collection](/source/debt_collection) and [civil litigation](/source/civil_litigation), the term '''judgment proof''' is commonly used to refer to [defendant](/source/defendant)s or potential defendants who are financially [insolvent](/source/insolvency), or whose income and assets cannot be obtained in satisfaction of a judgment.

Being "judgment proof" is not a defense to a lawsuit.  If sued, the defendant cannot claim being "judgment proof" as an [affirmative defense](/source/affirmative_defense). The term "judgment proof" instead refers to the inability of the judgment holder to obtain satisfaction of the judgment.

If a [plaintiff](/source/plaintiff) were to secure a legal [judgment](/source/Judgment_(law)) against an insolvent defendant, the defendant's lack of funds would make the satisfaction of that judgment difficult, if not impossible, to secure.<ref>{{cite journal|last1=Horack|first1=H.C.|title=Insolvency and Specific Performance|journal=Harvard Law Review|date=March 1918|volume=31|issue=5|pages=702–720|doi=10.2307/1327257|jstor=1327257}}</ref>

==Exempt assets==
In some jurisdictions, some classes of income and assets are exempt from being accessed to pay a judgment. If a judgment debtor has income, it may be possible to get an order of garnishment to collect a judgment from that source of income. However, if the debtor's income is low or if the debtor is already subject to garnishment, in order to prevent the impoverishment of the debtor, the debtor's income may be exempt from additional garnishment. 

===United States===
Some states do not permit [wage garnishment](/source/wage_garnishment). If the debtor is living on income from [social security](/source/social_security) benefits, a retirement pension, or other social [welfare](/source/welfare_spending), garnishment may not be possible, as such income is usually protected against garnishment by creditors.<ref name="FTC">{{cite web|title=Garnishing Federal Benefits|url=https://www.consumer.ftc.gov/articles/0114-garnishing-federal-benefits|website=FTC|accessdate=28 September 2017|date=May 2009}}</ref>

==Cost of collection==
The cost of collecting a judgment may also contribute to an assessment of whether a debtor is judgment-proof. If the amount that a judgment holder is able to collect from the debtor is insufficient to cover ongoing legal expenses and related costs of collection, collection efforts become uneconomical.

==See also==
* [Writ of execution](/source/Writ_of_execution)

==References==
{{reflist}}

{{DEFAULTSORT:Judgment Proof}}
Category:Tort law

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