How to know if you're judgment-proof from debt collectors

MoneyWatch: Managing Your Money How to know if you're judgment-proof from debt collectors We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Angelica Leicht Angelica Leicht Senior Editor, Managing Your Money Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications. Read Full Bio Angelica Leicht April 3, 2026 / 11:06 AM EDT / CBS News Add CBS News on Google Being judgment-proof doesn't make you immune to debt lawsuits, but it does change how the issue plays out. Andranik Hakobyan/Getty Images Debt pressures have been building rapidly over the last few years amid a landscape dotted by high borrowing rates, inflationary pressures and other hurdles, and those challenges have continued to accelerate over the last year, in particular. Case in point? Borrowers closed out 2025 with a record-high amount of household debt, with credit card balances accounting for a hefty portion of it. In turn, payment delinquency rates are climbing, and credit card interest rates — while lower than their recent peak — are still high enough to make carrying a balance a risky proposition for borrowers. For many credit card users, that combination of rapidly compounding interest charges and today's economic hurdles is now hard to overcome, and in certain cases, even the minimum credit card payments are becoming difficult to keep up with. That, in turn, elevates the risk of facing collection issues, but not every borrower is equally vulnerable. In fact, some people may be in a position where they're "judgment-proof," meaning creditors may pursue them legally, but will ultimately st...