Judgment proof
Encyclopedia
The term judgment proof is most commonly used in tort
law contexts to refer to defendant
s 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 a defense. If sued, the defendant cannot claim "judgment proof" as one would other affirmative defense
s. Judgment proof instead refers to the inability of the judicial lien holder to obtain satisfaction of their judgment.
An individual who is unidentifiable or has left the jurisdiction
is often considered to be judgment proof.
Tort
A tort, in common law jurisdictions, is a wrong that involves a breach of a civil duty owed to someone else. It is differentiated from a crime, which involves a breach of a duty owed to society in general...
law contexts to refer to defendant
Defendant
A defendant or defender is any party who is required to answer the complaint of a plaintiff or pursuer in a civil lawsuit before a court, or any party who has been formally charged or accused of violating a criminal statute...
s or potential defendants who are financially insolvent
Insolvency
Insolvency means the inability to pay one's debts as they fall due. Usually used to refer to a business, insolvency refers to the inability of a company to pay off its debts.Business insolvency is defined in two different ways:...
. Even if a plaintiff
Plaintiff
A plaintiff , also known as a claimant or complainant, is the term used in some jurisdictions for the party who initiates a lawsuit before a court...
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
Social security
Social security is primarily a social insurance program providing social protection or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. Social security may refer to:...
or other social welfare
Welfare
Welfare refers to a broad discourse which may hold certain implications regarding the provision of a minimal level of wellbeing and social support for all citizens without the stigma of charity. This is termed "social solidarity"...
this is not possible.
Judgment proof is not a defense. If sued, the defendant cannot claim "judgment proof" as one would other affirmative defense
Affirmative defense
A defendant offers an affirmative defense when responding to a plaintiff's claim in common law jurisdictions, or, more familiarly, in criminal law. Essentially, the defendant affirms that the condition is occurring or has occurred but offers a defense that bars, or prevents, the plaintiff's claim. ...
s. Judgment proof instead refers to the inability of the judicial lien holder to obtain satisfaction of their judgment.
An individual who is unidentifiable or has left the jurisdiction
Jurisdiction
Jurisdiction is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to administer justice within a defined area of responsibility...
is often considered to be judgment proof.
See also
- List of tort topics
- List of tort cases
- Tort reformTort reformTort reform refers to proposed changes in common law civil justice systems that would reduce tort litigation or damages. Tort actions are civil common law claims first created in the English commonwealth system as a non-legislative means for compensating wrongs and harm done by one party to...
- List of basic tort law topics