What does the term "judgment-proof" imply about a debtor? A. He/she has defaulted on a mortgage B. He/she has not property subject to execution C. He/she has paid the full amount for the transaction D. He/she has provided a security interest for the debt

Question

Mylie Tyler

Business

14 February, 00:44

What does the term "judgment-proof" imply about a debtor? A. He/she has defaulted on a mortgage B. He/she has not property subject to execution C. He/she has paid the full amount for the transaction D. He/she has provided a security interest for the debt

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Answers (1)

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Aleah Ellison · Answer 1

He/She has no property subject to execution.

Explanation:

It is description of a person who doesn't have the assets for the creditor to seize when the court order requires the debt repayment. A broke and unemployed person is judgement proof. The debtor having few legally protected assets and income is also judgement proof. Judgment proof is also called the collection proof and is not permanent. The judgement are valid for many years, the creditors continue to collect whatever the judgement allows even after they have won a lawsuit against a delinquent customer.