Judgment Proof

People from whom a creditor cannot collect money, even when there is a court order stating there is a debt. Such people may be insolvent or their wages or assets protected by state law.

A term used to describe an individual who is financially unable to pay an adverse court decision awarding a sum of money to the opposing party.

A judgment-proof individual has no money or property within the jurisdiction of the court to satisfy the judgment or is protected by wage laws that exempt salaries and property from formal judicial process.