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The term judgment proof is most commonly used in tort law contexts to refer to defendants or potential defendants who are financially insolvent. Even if a plaintiff were to secure a legal judgment against an insolvent defendant, the defendant's lack of funds would make the satisfaction of that judgment difficult, if not impossible, to secure. In such cases plaintiffs might move for wage garnishment based on the judgment. However, if the debtor is retired or collecting Social security or other social welfare this is not possible.
Judgment proof is not an official defense. If sued, the defendant does not claim "judgment proof" the same way they would claim assumption of risk or contributory negligence; rather, judgment proof kicks in after the judgment has been rendered, and it is time to collect.
An individual who is unidentifiable or has left the jurisdiction is often considered to be judgment proof.
A person is said to be judgment-proof where they are either immune or able to otherwise escape prosecution for their conduct.
See also
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