People in deep debt worry constantly about what creditors can do to them if they sue and get a judgment for the amount owed. What can be taken away from them in a wage execution or bank levy? Well, most of the time, the answer is quite a bit. However, there are some people that are so badly off financially that creditors really cannot get any traction against them to collect. This is what is called being "judgment proof."  This is where you have no wages to garnish, no bank account to levy, no assets to seize.

This is not to say that you should ignore debts if you find yourself to be judgment proof.  This is because, hopefully, things may change. What happens if you turn your life around because you find a job, are no longer disabled, or inherit money? What if you decide to buy a home? Judgments in New Jersey can stay around for quite awhile, and can act as liens on real estate owned now or in the future, for 20 years. You may be brought up short if you try to refinance your mortgage or sell your home.  Being "judgment proof" is, in most cases, a temporary condition and should not be used to ignore creditors.

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