Could someone please tell me what income is judgment proof?

Question

I also need links to prove this. What about if i have no money for an attorney?

Answer 1

Parts of this might help if you were in the military.

USFSPA & DIVORCE UPDATE 02:   The USFSPA Litigation Support Group (ULSG) closely monitors cases filed in state courts where former servicemembers, who are receiving military retirement pay, are locked in disputes with former spouses when that pay is converted, by election, to military disability pay under applicable VA benefits. This is a common move by former servicemembers who receive a VA disability rating because of the tax advantages of receiving disability pay over retired pay.  Former spouses usually dispute such an election and demand that foregone share of military retired pay be rendered to them, even though the former servicemember's only (or major) source of income is now disability pay. Usually, former servicemembers (and their lawyers) rely solely on the provisions of the Uniformed Services Former Spouses Protection Act (USFSPA) which prevents the treatment of military disability pay as disposable pay for purposes of payments to former spouses.  See USFSPA, 10 U.S.C. § 1408(a)(4)(B).  But state courts continue to ignore that provision and rule against the interests of former servicemembers.



     It is vital, therefore, that ULSG members and constituents also rely on the relevant provisions of the Veterans' Benefits Act, 38 U.S.C. § 5301, which provides that payments of benefits due or to become due under any law administered by the Secretary [of Veterans Affairs] shall not be assignable except to the extent specifically authorized by law, and such payments made to, or on account of, a beneficiary shall be … exempt from the claim of creditors, and shall not be liable to attachment, levy, or seizure by or under any legal or equitable process whatever, either before or after receipt by the beneficiary. Congress recently amended the VBA and this applicable provision  Id. § 5301(a)(1). , to clarify that, in any case where a beneficiary entitled to compensation, pension, or dependency and indemnity compensation enters into an agreement with another person under which agreement such other person acquires for consideration the right to receive such benefit by payment of such compensation, pension or dependency and indemnity compensation, as the case may be … such agreement shall be deemed to be an assignment and is prohibited. Veterans Benefits Act of 2003, Pub. L. No. 108-183, § 702, 117 Stat. 2651, Dec. 16, 2003, codified at § 5301(a)(3)(A).



    ULSG members finding themselves in litigation on questions related to this advisory should instruct their lawyers to brief and argue – from the very beginning of the case, and at every opportunity thereafter – the  Veterans Benefits Act (VBA) issue, in support of their position.  While ULSG, LLC cannot provide individualized legal advice to its members and constituents, or answer individual queries, ULSG leadership believes that this is a prudent course to follow in cases such as this. ULSG would appreciate hearing reports on this issue from those concerned.  They can be reached at [e-mail] or by mail to ULSG, LLC, 20770 US Hwy 281, Ste 108-12, San Antonio, Texas 78258-7500. [Source: ULSG Advisory 5 Aug 08 ++]

Answer 2

The term 'judgment proof' is NOT a legal term.  It is used to refer to someone that has nothing that a creditor can collect even if they win a judgment in court.  What assets and or income are subject to a judgment varies by state.  The TYPE of income is as important as the AMOUNT.

Answer 3

No income is "judgment proof."  In fact, that expression is meaningless.  You probably have some idea of what you are trying to ask, but the phrasing you used has made it unclear.  Try rephrasing your question to ask what you really want to know, without using the term "judgment proof."  Judgments are rendered against defendants, not against income.

Answer 4

all i can offer if you receive ssd or ssi and put it into a bank account that account will not be subject to law suits or get a trust

Answer 5

The term "judgment proof" usually refers to the idea that a person may have so few assets that sueing them and winning a judgment would be a waste of time and effort.  

Someone's current income may be irrelevant to the decision whether to sue that person.  A lawsuit may be initiated to preserve the plaintiff's rights to the judgment amount - by not letting the statute of limitations pass without a lawsuit - in hopes that the person may acquire sufficient assets in the future.  In Texas, for instance, a judgment may be kept active by the issuance of a writ of execution within ten years of the judgment date.  That renewal lasts another ten years.

So, I may sue a person with few assets to win a judgment bearing interest at the maximum rate allowed by law, in expectation that within the next twenty years, that judgment debtor will have enough assets to take in satisfaction of that judgment.