What Is Meant By Judgment Proof

There are two categories of people that can be described by "judgment proof". Firstly, those from whom money cannot be recovered through judgment. That may happen because they do not have enough money to pay or because they are insolvent. The second category includes those who have certain statutes to protect them. The person who may be judgment proof is a judgment debtor. He/she must pay a judgment creditor, meaning someone who made a requirement in court, concerning the debtor, and won. At the Show Cause Hearing one may present proof that he/she cannot pay the damages, including proof of a low income, income tax statements etc. If the court official is convinced, then the debtor will be allowed to make the payment during a longer period of time. Though "judgment proof" is a legal phrase, it is rarely used and some court officials may not even be familiar with it. Instead of using this phrase, they will simply explain to the debtor that he/she is granted a time extension on the damages payment. Being found judgment proof is not something permanent. The judge is the one empowered to decide the time extension, but that is often a month. When the time period expires, the debtor will either explain it to the court why the payment has not been made yet or demonstrate that paying is still not possible. Hearings will be reiterated until there are no more debts or until the court official no longer finds the person to be judgment proof. What should be said is that only seldom is someone given the judgment proof status. What is usually done to bring both parties into agreement is to establish a gradual system of payment. The debtor will no longer have to periodically go to hearings and will be thought to be in good standing with the court.

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