You are judgement-proof when, under the laws of Montana, a judgment creditor has no practical ability to force payment of the judgment. You have no non-exempt assets and your income stream consists solely of exempt income (retirement income, social security, or the like).
Even if you are considered Judgement Proof in the state of Montana, it might still be a good idea to pursue bankruptcy for these three reasons:
Save time and money
Bankruptcy makes a single claim of exemptions for all presently-existing creditors. You must respond to judgements every time the creditor tries to collect the judgement or risk a waiver of the exemptions, which may lead to property loss. Repeatedly having to respond is a waste of your time and money.
Save your future
Filing bankruptcy while you are judgment proof allows you to improve your finances without old judgments constantly looming. Judgments can last several years. If your financial condition improves and you are no longer judgment proof, then the creditor will be able to collect.
Save your sanity
Filing for bankruptcy prevents loss of exempt property and ends collection attempts. The persistent efforts to collect a debt, even if unsuccessful, can take a serious toll on your life and cause undue amounts of stress.
Are you judgement proof? Bankruptcy can be a very effective way to deal with judgements. The sooner you act, the more successful the outcome. Contact Cossitt Law to learn about your options. We help clients weight their options, make informed decisions, anticipate and avoid problems and resolve disputes in a timely manner so you can move on with your life.