I have a credit judgement against me and am judgement proof?

Question

I have a credit judgement against me won by a collection agency, I am however judgement proof. My question is , every six months they request proof of income. Do I have to comply? or is it my right to privacy not to. Thanks

Answer 1

I agree with Studly. Unless this is a court order, tell this collection agency exactly where they can put this request.

Answer 2

Mark C is correct, tread litely.  I would check with an attorney like he suggested.

Answer 3

Judgment-proof is the commonly used term but a more accurate term would be "execution-proof"! Although creditors and debt collectors win lawsuits, they still have to collect thus, if you are penniless you are insulated not from judgment but from execution (collection of the debt - at least temporarily). If you lose your "judgment proof" status due to new employment, the creditor or collector can seek a judgment and ask for a garnishment of wages up to 25% of your disposable income (in some states it's less). Once you're employed again, it's better to negotiate a reduced payoff rather than risk a court-ordered judgment. The difference is your credit report will show "debt settled" instead of the more negative "judgment"!

So in escense, you do have to comply. (depending upon your states regulations).

Hope this answers your question

LEGAL DISCLAIMER:  The advice contained herein is for informational purposes only.  It is not to be construed as Legal Counsel nor Legal Advice.

Answer 4

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.

So, provide your income records, so they know you did'nt will the lottery or something like that.

Answer 5

Is the request coming from the court or from the creditor?  If it's the court, yes, you have to comply.  If it's just the creditor, no.  Of course, they could spend time and money to get a court order, but eventually they will get tired of doing that.

Answer 6

"judgment proof"?  Please explain that.

Answer 7

The problem with being "judgment proof" is it's generally a short time situation.  Eventually you may find a job, or come across some money...then they got you.

That's why this collection agency is pestering you every six months.

The only time you HAVE to supply personal financial or employment info is in response to a "judgment debtor" disclosure order from the court.  If the court orders you to supply this info, you must supply it or be held in contempt.

I didn't know the court could constantly issue such orders.  Generally they issue them right after a judgment is granted....not every 6 months.

So first be sure this is a court order.  If not, tell the agent to buzz off.