Legal Definitions - judgment proof

Definition: When a person or entity is unable to pay a debt or legal judgment against them because they have no assets or income that can be seized or garnished.

Example: If someone owes a creditor $10,000 but has no job, no property, and no savings, they may be considered judgment proof. Even if the creditor wins a lawsuit against them, they will not be able to collect any money.

Explanation: Being judgment proof means that a person or entity is essentially "immune" to legal action because they have nothing that can be taken away to satisfy a debt or judgment. This can happen if someone is very poor, unemployed, or has no assets in their name. In the example given, the person owes money but has no way to pay it back, so the creditor cannot collect anything from them.