Judgment-Proof Cease & Desist Letter Template
Being judgment-proof means creditors can't collect from you because your income and assets are protected by law. Sending a cease and desist letter stops debt collectors from contacting you, though it doesn't erase the debt or prevent lawsuits.
Answer Your LawsuitBeing judgment-proof means creditors can’t collect from you, even if they win. Your income and assets are legally protected. You can stop debt collectors from contacting you by sending a cease and desist letter.
What Does It Mean to Be Judgment-Proof?
Judgment-proof status protects you from debt collection. Creditors can’t take your income or assets, even after winning a lawsuit. You have nothing they can legally claim.
Being Sued by Debt Collectors? Respond Now
Even if you're judgment-proof, creditors can still sue you. Respond properly with Solo's help before the court deadline passes.
Respond to Your LawsuitIf you live on a fixed income, you’re likely judgment-proof. Creditors usually won’t sue if they can’t collect anything. But some might still try.
How To Know if You’re Judgment-Proof
You’re typically judgment-proof if any of these apply:
- All your income is legally protected
- You don’t have savings in a bank account
- You don’t own a home with equity
- Your assets are protected by state or federal exemption laws
Many income sources are exempt from wage garnishment. Social Security, SSI, unemployment, child support, alimony, and VA benefits can’t be touched.
Without non-exempt cash or real estate, creditors have nothing to seize. They can’t freeze accounts or place liens on your property. States also protect personal belongings up to certain amounts.
Are There Exceptions to Judgment-Proof Exemptions?
Yes. Being judgment-proof won’t protect you from certain debts. Child support, alimony, federal student loans, and back taxes are different.
The government has special collection powers for these obligations. They can enforce payment regardless of your financial situation.
The government can garnish your Social Security or SSDI payments. They’ll take money directly for unpaid child support, alimony, or taxes. They can also seize your tax refunds.
Stay current on child support and alimony payments. Falling behind has serious consequences. If you’re struggling, our partner Solo can help you explore your options.
What Is a Cease & Desist Letter?
A cease and desist letter formally asks collection agencies to stop contacting you. Under the Fair Debt Collection Practices Act, debt collectors must stop communication after receiving it.
They can send one final notice. That notice might inform you if they plan to take legal action.
Sending a cease and desist letter doesn’t erase your debt. It only stops the communication.
If you’re judgment-proof, a cease and desist letter is especially helpful. It stops harassment while your financial situation remains unchanged. Creditors can still sue you, but they’ll likely reconsider if they can’t collect anything.
When Should You Use a Judgment-Proof Letter?
Send a cease and desist letter if you’re confident you’re judgment-proof. The letter will stop debt collectors from contacting you.
People use this letter to stop aggressive collection efforts. It can also discourage potential lawsuits.
Sending the letter doesn’t guarantee protection from lawsuits. Creditors may still sue, even though they can’t collect anything.
Judgment-Proof Cease & Desist Letter Template
You can find sample letters online. Below is a free template you can use and adapt.
[Your Name]
[Your Address]
[Date]
[Debt Collector’s Name]
[Debt Collector’s Address]
Re: [Account number for the debt, if you have it]
To Whom It May Concern:
I am formally requesting that you cease all communication with me. My rights are outlined in the Fair Debt Collection Practices Act (FDCPA).
My income is legally protected from garnishment, attachment, levy, or seizure. My income comes from the following exempt sources:
- Social Security (SSI, SSDI)
- Public Assistance (TANF)
- Unemployment Compensation
- Disability Benefits
- Workers’ Compensation
- Veterans Benefits
- Pensions (public and private)
- Alimony or support reasonably necessary for me or my dependents
I request that you cease all written and verbal communication with me. Continued contact after receiving this letter is considered harassment. It violates my rights under the FDCPA. I’m not acknowledging that I owe this money.
Thank you for your cooperation.
Sincerely,
[Your Name and Signature]
Tips for Sending Your Letter
Send your letter via certified mail with return receipt requested. You’ll have proof that the collector received it.
Keep a copy of the letter for your records. Document the date you sent it.
If the collector continues contacting you after receiving your letter, document every instance. You may have grounds for legal action under the FDCPA.