Judgement Proof

[cricket4u193]

I went to see about filing chapter 7 or 13 a month ago. I was advised not to file, but rather tell my credors that I am on SSI and I am Judgement proof. I live in Knox, Tn. I owe on 3 loans. and have found that i can not make the payments. all my extra money have been goin to pay on the loans every month and the attorney advised me to stop all payments and just tell them im judgement proof. What does (JUDGEMENT PROOF) MEAN? please help me to understand. and can they still come and take away my personal items? Please help. D.S in Tn.

[grasmicc]

Certain types of income and property are "exempt" from collection attempts.

Basically, this means in your case that your creditors cannot get any money from you, because it is illegal for them to try to go after your social security, and you don't have any other money. So the theory is that if you tell them you are "judgment proof" - that you don't have any money - then they'll stop trying to collect anything from you.

Whether they can go after your personal property depends on factors you haven't listed. However, unless the property has a significant amount of value, they likely will not go after it.

That being said, I'd go ahead and see another attorney. Filing BK will at least keep the creditors from harassing you.

[grasmicc]

Yeah, they definitely are NOT going to be able to go after any of that stuff.

The only other thing I'd be concerned about is, if you expect to, in the future, receive an inheritance or a large gift from someone, or if it is even possible then it might be a good idea to file Bankruptcy anyway because, later on, they could come after the inheritance or gift.

If not, then lawyer is right.