This is a question I get a lot from someone here in New Jersey who is in such bad financial shape that there is nothing that their creditors can do to them. They are, for all intents and purposes, "judgment proof." This is because:

  • They either have no income, or that income is from a source that cannot be garnished, such as Social Security benefits, unemployment benefits, a pension, child support, and the like.
  • They have less than $1,000 in their bank account, or that money is from sources such as those listed above.
  • They do not own real estate, such as a home.
  • They do not own any assets of any significant value, such as a car.

As such, they see no need for bankruptcy because they do not perceive any benefit to it. They are wrong.

Being Judgment Proof Is the Perfect Time to File Bankruptcy!

Yes, that's right; now is the best time to do it, and as such, there is value in filing bankruptcy when you are judgment proof! Few people, hopefully, are going to be judgment proof forever. They find employment, buy a home, and turn their lives around. In short, things get better.

When that happens, do you want to have some creditor take money out of your paycheck, freeze your bank account so that the mortgage payment bounces, or seize your car? No way!

Think about it. Right now there is little or no risk to filing bankruptcy; you don't own anything! There is no home to lose to the trustee, no income to go to creditors in monthly payments, and no big tax refund to be taken away. Filing bankruptcy when you are judgment proof is insurance against better times. Get rid of your debt now, so that it won't weigh you down when things get better.

Let Me Help You Through It!

If you live in Burlington, Camden, Gloucester, Salem or Cumberland County, and are considering filing bankruptcy, call me at 856-432-4113 or contact me through this site for a free consultation in my Woodbury office to discuss your case.

If you have more questions about bankruptcy, then download my free book,Top Questions People Ask About Filing Bankruptcy in New Jersey.

Not sure if bankruptcy is right for you? Take the quiz to the right to find out more!

If you are looking for more information on how bankruptcy might help you with your divorce, then you should download my free book, Top Questions Divorcing Couples Ask About NJ Bankruptcy.

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Steven J. Richardson
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Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.