what is meant by judgement proof, what it is actually?

juan,

Welcome to forums. The term ???judgment proof??? refers to that judgment debtor who has no assets by selling which the judgment creditors could be satisfied.

In some of the states there is a fund for those who have been cheated by ???judgment proof??? real estate licensee to recover their money.

Please go through the link below, more about ???judgment proof??? debtor has been discussed here-
http://www.debtconsolidationcare.com/forums/judgment-proof.html

What qualifies for judgement proof and what are the repercussions ?

Being "judgment proof" doesn't mean you can't get sued - a creditor can still file suit and obtain a judgment against you.

What the term means, is that you you don't have any available assets which the creditor can take through court order. For example, you wouldn't have any wages that can be garnished (either you're unemployed, or you don't make enough to garnish, or your income is exempt from garnishment). You wouldn't have a bank account that could be seized. You wouldn't have a home that they could put a lien against. Basically you don't have anything that they can take.

In that case, they have a judgment, but there is no way for them to enforce the judgment or collect on it.

The repercussions are that it can come back to haunt you in the future, when you might have assets later. Judgments are usually good for 10-20 years, and can be renewed after that making them good for another 10-20 years. All the while, from the date a judgment is entered, it earns interest at the state rate (usually 9-12%).

So you may be "judgment proof" now, but what if you get a job in 5 years? Or what if you buy a home later? Or if you ever decide to open a checking account? Well, at that point in time you wouldn't be judgment proof anymore, and the creditor could then come and garnish your wages or bank account, etc. (And by then the balance will be a lot higher because of all the interest).