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 retired or collecting Social security or other social welfare this is not possible, there are also other ways debtors can protect non-exempt wages from garnishment

Judgment proof is not an official defense. If sued, the defendant does not claim “judgment proof” the same way they would claim assumption of risk or contributory negligence; rather, judgment proof kicks in after the judgment has been rendered, and it is time to collect.

Once you are judgment proof creditors can sit around and cry all they want and still collect nothing. After enough time has expired you can offer your creditor pennies on the dollar. Eventually the creditors will decide that it is better to take the pennies then to sit and receive nothing.