When the defendant does not have sufficient money or other assets to pay the judgment.

Study for the Paralegal 101 Test. Immerse yourself in our comprehensive study guide with multiple-choice questions, hints, and explanations. Ace your exam with our expert-made practice questions!

Multiple Choice

When the defendant does not have sufficient money or other assets to pay the judgment.

Explanation:
When a defendant cannot satisfy a judgment because there is little or no money or other assets available to pay, that party is described as judgment proof. The judgment exists—the court has ruled they owe money—but there’s nothing of value that a creditor can seize or attach to collect the amount. Enforcing the judgment would be futile without assets, even though the debtor remains legally obligated. The other terms refer to different Civil Procedure concepts not about the debtor’s ability to pay: venue is about the proper location to bring a case; discovery is the process of obtaining evidence from the other side; interpleader is a procedure used to resolve competing claims to a single asset held by a stakeholder. These don’t describe the debtor’s financial ability to satisfy a judgment.

When a defendant cannot satisfy a judgment because there is little or no money or other assets available to pay, that party is described as judgment proof. The judgment exists—the court has ruled they owe money—but there’s nothing of value that a creditor can seize or attach to collect the amount. Enforcing the judgment would be futile without assets, even though the debtor remains legally obligated.

The other terms refer to different Civil Procedure concepts not about the debtor’s ability to pay: venue is about the proper location to bring a case; discovery is the process of obtaining evidence from the other side; interpleader is a procedure used to resolve competing claims to a single asset held by a stakeholder. These don’t describe the debtor’s financial ability to satisfy a judgment.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy