collection-proof?

[gina2000]

I've seen this term used in posts throughout the forum and haven't really grasped its meaning. Can someone point me to an explanation? Thanks!

[justbroke]

Collection proof is a term used in relation to a debtor and creditors who employ every means (collection agency, attorneys, lawsuits) to collect the past-due balance. A person who is collection proof is one who has no legally attachable property, money, or employment which would allow a creditor to collect.

In order to collect a creditor would need to obtain a judgment by suing the debtor in court and winning the judgment. The creditor can then record the judgment and then ask the court for a Writ of Execution in order to collect. This collection of a judgment (lien) can be accomplished in several ways. These collection manners include, but are not limited to, garnishment of our paycheck, a levy action on your bank accounts, or attachment to real and/or personal property (such as your home or cars).

So, if you are collection proof, you typically have no job (or live in a State where a judgment creditor can't attach wages -- such as Texas), have no real or personal property (or live in a State where a judgment creditor can't attach your home -- such as Florida), and have no "attachable" money in the bank (such as those on Social Security or receiving other "protected" income and assets in banks).

[gina2000]

Thanks for the comprehensive explanation!