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If someone is judgement proof, can a creditor still win a judgement, and have it placed on credit report?*

Some people say no, others say yes. Which is correct? I was under the impression, that even if someone is judgement proof, a creditor/collector can win a judgement in court, and have it placed on the debtors credit report, but won't be able to collect on the judgement.

Answers:

1) no one is judgment proof ?????????? - some states have homestead protecting any judgments from filing a lien on your house but it can still go on a credit report

2) Judgment proof means they might not be able to collect, or place a lien on your property, but oh yeah, it might show up on your report! It will just sit there until you decide to pay it, or it falls off your report. Hope that they don't renew it, that way it's gone in 7 years. You can always negotiate a settlement, though. Try 50%. Keep in mind collection agencies don't place judgments on reports. The credit reporting agencies get their information from the court system, and they are the ones who put the information there. So whether or not you pay a judgment is besides the point, if the information is there, it's placed on your report. Here's a secret: if you don't want a judgment to show up on your report, delete the address where you lived when the judgment was obtained. If it shows up, dispute as "not mine" or "vacated". They won't be able to match the address and they may remove it. Chances are, they won't have your SSN and won't be able to match it that way.

3) Being "judgement proof" generally means that the debtor has no significant assets that could be attached to satisfy a judgement. That doesn't necessarily mean that getting a judgement is a waste of time. You might be able to get a wage garnishment based on the judgement. It's also possible that the debtor's financial situation could change in the future -- Lotto hit, inheritance, whatever. That judgement would be just the ticket to collect in that case! There are exceptions. Generally if the debtor is retired or collecting SSI you can't get a judgement against them. Of if the statute of limitations has run out on the original debt you can't get a legal judgement though many default judgements have probably been entered that would never have made it through the court if the debtor had challenged it. If you're collecting on a debt, let the debtor assert the defense. If they don't, you may be home free. Once the judgement is recorded it will show up automatically in their credit report. Whichever side you're on, you need to consult with a local attorney. There's no sense in pursuing a judgement that won't be legal. And if you're being sued you don't want one on your record since they can remain on your credit record pretty much forever in some jurisdictions.

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