Withholding Judgment

Sometimes debtors are described as “judgment proof.”  This means that creditors will have difficulty collecting debt against them because their property is legally exempt or they simply have nothing upon which to attach.  If a debtor has little in the way of assets, a creditor’s ability to collect is limited to only going after non-exempt assets.  A creditor cannot attempt to take income from Social Security benefits, Supplemental Security Income benefits, public assistance benefits, unemployment benefits, veterans benefits, child support, or federal employee and civil service retirement benefits.

Being judgment proof is not a good thing.  The goal is to be financially successful and independent.  At Keith, Winters & Wenning, we strive to see the big picture and our client’s long term goals.

HINT: If you are currently judgment proof but you suspect that your financial picture will improve, it may make sense to file for Chapter 7 bankruptcy while your income is low enough to qualify.