How do you go about getting "judgment proof"

[Fallonedward]

We are living on unemployment and my small salary. What steps should I do to get "judgment proof"?


thanks

[newbie2]

We are living on unemployment and my small salary. What steps should I do to get "judgment proof"?


thanks

There is no such thing as being judgment proof. What you are referring to is collection proof.

A judgment can be filed against you and while you may have no money now, or no assets, someday you will and that is what the plaintiff hopes for. (In most states judgments can be renewed)

The only way to be truly collection proof is to never own anything of value, never use a bank account and to not work. If you are filing bankruptcy I wouldn't worry about it unless you have a judgment against you right now.

[Fallonedward]

There is no such thing as being judgment proof. What you are referring to is collection proof.

A judgment can be filed against you and while you may have no money now, or no assets, someday you will and that is what the plaintiff hopes for. (In most states judgments can be renewed)

The only way to be truly collection proof is to never own anything of value, never use a bank account and to not work. If you are filing bankruptcy I wouldn't worry about it unless you have a judgment against you right now.

Thanks for your answer. I do not have a judgment against us but I want to plan as best I can. We can not file till November, so that our 6 month look back does not include our lump sum severance payouts. I just hope we do not get judgments in the time from now till November. We are currently 2 months behind on our CC's, current on mortgage and car payments

[newbie2]

Thanks for your answer. I do not have a judgment against us but I want to plan as best I can. We can not file till November, so that our 6 month look back does not include our lump sum severance payouts. I just hope we do not get judgments in the time from now till November. We are currently 2 months behind on our CC's, current on mortgage and car payments

If you are only 2 months behind I wouldn't worry about it. It takes time to file a lawsuit and for any judgment to be issued. You should have plenty of time.

[gmk]

I'd talk with an attorney. Your severance packages may not have to be counted in your 6 month look back as they are one time occurrences, not like Xmas bonuses and the like. This may be somewhat district specific but a local BK attorney could readily address this issue. Of course, the actual cash is part of your assets even if you do not have to use the severance in your means test.

[Fallonedward]

I'd talk with an attorney. Your severance packages may not have to be counted in your 6 month look back as they are one time occurrences, not like Xmas bonuses and the like. This may be somewhat district specific but a local BK attorney could readily address this issue. Of course, the actual cash is part of your assets even if you do not have to use the severance in your means test.

I have spoken with 2 already and both said I need to use my severence to pay my mortgage and then in November file

[frogger]

And as long as your unemployeed, perhaps you do not want to file for bk? You might consider waiting until you have something to protect.