Judgment Proof

The term judgment proof is most commonly used in tort law contexts to refer to defendants or potential defendants who are financially insolvent. Even if a plaintiff were to secure a legal judgment against an insolvent defendant, the defendant's lack of funds would make the satisfaction of that judgment difficult, if not impossible, to secure. In such cases plaintiffs might move for wage garnishment based on the judgment. However, if the debtor is living on income from social security benefits, a retirement pension, or other social welfare, then this may not possible, as such income is often subject to legal protections against garnishment by creditors.

"Judgment proof" is not a defense. If sued, the defendant cannot claim "judgment proof" as one would other affirmative defenses. Judgment proof instead refers to the inability of the judicial lien holder to obtain satisfaction of their judgment.

An individual who is unidentifiable or has left the jurisdiction is often considered to be judgment proof.